1. A Need-To-Know Basis



Treat your credit card number like the confidential information that it is and only provide it on a need-to-know basis. Are you making an appointment at your local salon or doctor's office and they want your credit card information to hold the appointment? Even though you plan on paying cash? Flat out refuse to provide it.

Nowadays too many people have access to the average person's credit card number. If you want to protect yourself from credit card fraud, reduce the number of people who ever know what your credit card number is. Sometimes that will mean putting your foot down and maybe even being stubborn. As they say -- it's better to be safe than sorry.

2. Watch For The "S"

For most people, online transactions are inevitable. Fortunately, credit card fraud doesn't have to be.

Sooner or later, you're going to make a purchase online (if you haven't already). Before you enter your credit card number into any online payment form, make sure the form is hosted on a secure site.

The best way to prevent credit card fraud online is with secured web pages. You can tell a secured web page from an unsecured web page by the little telltale "s" locate at the end of the "http" letters. If a web page is secured, it will say "https" in your browser bar. If it's not, it will just say "http" and you'd better not put your credit card number in.

3. Use Virtual Numbers Whenever Possible

Because online transactions are becoming more and more popular, credit card companies are now offering "virtual" numbers to help reduce credit card fraud.

If your credit card company offers "virtual" or "one-time-use" credit card numbers, you will be able to access the feature by logging in to your online account. Simply sign in using your personal information and then prompt the website to generate your temporary credit card number.

Once you have been given the temporary credit card number, you can use it for your online transaction. This way, you are able to pay for your purchase with a credit card, but no one really has your actual account number which greatly reduces your chance of credit card fraud.

4. Don't Use Public Computers for Financial Transactions

If you use public computers that other people have access to, don't ever enter your credit card number into them. If you do, you may signficantly increase your chances of credit card fraud.

There are programs that people can use to track everything typed into a computer. If someone has installed one of these applications into the computer you are using and you enter your credit card number into it, they'll gain access to the information.

5. Shred Those Statements

Perhaps one of the most important ways you can reduce the risk of credit card fraud is to properly dispose of your monthly credit card statements. File your statements for as long as you want to, but once you decide to dispose of them, put them through a cross-cut or diamond-cut shredder.

While it's true that credit card fraud is a growing concern, these five steps are a great way to protect yourself from the possibility of becoming the next victim.