Credit Card Debt Management

It is unfortunate, but credit card fraud is becoming a major problem all over the world. If you have a credit card you could be targeted. And if you are you could end up in a bad situation that takes a lot of time to dig out of. Being aware of credit card fraud is the first step in avoiding it. That being said, you must also know what else you can do to protect yourself.

A lot of credit card fraud cases stem from online purchases. If you are going to shop online you need to make sure that you only use your credit card at stores you trust. Do you have the feeling that a store may not be secure? In this case you will be better off finding another place to make your purchase. It is not worth risking your credit card information.

Moving on, you never want to share your credit card information with anybody unless you are 100 percent sure that you are doing the right thing. For example, if you receive an email asking for your credit card numbers, for whatever reason, you need to proceed with caution. There is a very good chance that this is a scam. Even if you ordered an item online most stores are not going to ask you to resend your credit card information via email, even if there is a problem.

Finally, be sure to monitor your credit card statement. Do you notice any suspicious charges? If so, there may be somebody using your credit card without your authorization. In turn, you should immediately contact your credit card company to get to the bottom of the problem.

Do your best to keep your credit card information protected at all times. Credit card fraud is a big problem, and one that you want to avoid at all costs.

In the interests of protecting against fraudulent credit card usage, many banks are getting proactive. Overseas, where the crime has apparently run rampant, banks are now blocking legitimate cards at even a hint of suspicious activity, according to an interesting new article on British financial site ThisIsMoney.

International credit card fraud has been a tremendous problem, and it’s not getting better anytime soon. Reports say the problem seems most significant in the United Kingdom — we’re talking about hundreds of millions of dollars. There are entire crime rings dedicated to this around the world, and international enforcement is difficult, to say the least. Hopefully, by the banks taking matters into their own hands, it will deter criminals somewhat. However, it can also create serious headaches for travelers.

The following steps can provide smooth overseas financial transactions:

Talk to your credit card issuer. Let them know you will be traveling and making purchases overseas. This way, they won’t be caught off guard and become unreasonably suspicious.

Mix it up. Pack a variety of debit and credit cards, and mix it up with cash for a backup plan. You might even consider a prepaid card loaded with the currency of the country in which you will be traveling, ThisIsMoney advises.

Write down phone numbers. Just in case you and your credit/debit cards become separated, write down the customer service phone numbers and keep them in a safe place. These numbers can be found on the backs of the cards or on your monthly bill. You might also want to write down the three-digit security code found on the back of your card for verification purposes, should you need to call customer service. Most should be okay with just hearing your social security number, however.

Research your company. Make sure you know your credit card issuer’s policies on card replacement and other fraud issues. It’s certainly nice to have 24-hour emergency card replacement, in the event your card is stolen or swallowed by an ATM machine.

There is a new e-mail scam circulating now, according to Web Host Industry News, promising “Casino Rewards” for those who sign up for a credit card. The e-mails claim to be sent by American Express, Visa or MasterCard, in conjunction with 12 major U.S. international banks. It promises a credit card with a $100,000 spending limit, or 10 days in a premiere hotel with $30,000 spending cash.

The e-mail offers a click-through link to an informational web site with a drop-down list of banks. Scam victims choose their bank and are then sent to a “mirror” web site that looks identical to their online banking site, where they log in with their username and password. All is seemingly normal, except the site is a phony and is capturing online banking login information for fraudulent use.

E-mail scams, also known as “phishing,” are a prime way for scam artists to wreak their havoc in the 21st Century. Technology allows everything to appear normal, and the same applies to telephone scams. Con artists can actually “mirror” a legitimate telephone number, with a local area code and everything, so nothing appears suspicious on Caller ID boxes. It sets the victim at ease, just like “mirroring” a web site with which they are familiar. According to the Anti-Phishing Working Group, the financial services industry is the most targeted of all when it comes to e-mail scams. That industry served as the target of e-mail scams as much as 93.8% of the time in November 2007, the group reported.

The bottom line to remember is if it sounds too good to be true, it probably is. If there’s any doubt, call the bank or credit card company itself and ask for more information. Also remember that banks and credit card companies will never, ever ask for your login information or account numbers, period.