Like anything else involving money, credit cards are subject to fraud and theft. In most cases, in fact, fraud protection is even more important with credit cards, where big balances can be run up without the real cardholder ever knowing. Protecting your credit cards from fraud is a two-stop process that begins with preventing fraud from taking place and continues with taking action when you detect or suspect that fraud has been committed.



Precautions are simple. One of the best ways to prevent fraud is to sign your card. A signature on the back of the card helps verify that the person using the card is the same person to whom the card actually belongs. If you can get a card with your picture on it, do so. Many companies are now offering picture cards, which, along with a signature on the back, will help merchants determine whether the person attempting to use the card is the actual cardholder.

Another precaution is to never turn loose of your card or at least never let it out of your sight. This is particularly good advice in tourist areas, where typical fraud involves swiping cards more than once or making sophisticated copies of your credit card.

It's also a good idea never to divulge the details of your credit card with anyone, particularly over the internet. Always destroy any documents, electronic or otherwise, that may contain your credit card information. Fraudsters often sift through trash, and that can include trash on your computer, to get your credit card information. It's worth remember that con artists may also pose as reputable business people or even credit card company representatives, and you should never give your information, particularly critical information like your Personal Identification Number or PIN, out to anyone.

Not only is it not a good idea to let other people such as friends and family use your credit card, it is also illegal. While those people may have your best interests at heart, their carelessness is not a great and they may probably will not take the same precautions you would. Instead, make the purchases for them with your card and allow them to pay you back.

Keeping your personal information up to date is important as well. Let your supplier know if you move or change your name. Doing this will keep your valuable information out of the wrong hands.

It goes without saying that a lost or stolen credit card should be reported immediately to limit the damage that can be done to your charge account and, consequently, your credit score. Also, any transactions that show up on your bill that you don't remember or that you know are incorrect should be reported immediately as they may not be mistake but signs of fraud.

Protecting yourself from credit card fraud isn't difficult, but it does require some diligence. Simply paying attention to what you are doing with the card and what is showing up on your bill may not always be enough, but they're a good place to start.