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Identity Theft and Credit Card Safety

By: Michael D. Strauss

In November 2007, the Federal Trade Commission released its 2006 report on the problem of identity theft in the United States. It is a problem that has special implications for credit card users. According to the report, an estimated 8.3 million Americans were victims of identity theft of one form or another within the preceding year. The most common type involved misuse of already existing accounts. Of these, 61% were credit card accounts.

Two findings of this study are particularly important if you are a victim of identity theft. First, and perhaps most obvious, the sooner the theft is found out, the less severe the losses, both in terms of time and money. In cases where detection occurred more than six months after the fact, 30% of victims reported out of pocket losses in excess of $1000. The number drops to 10% when detection occurred sooner.

In terms of time spent resolving problems as a result of theft, 32% of those in the more than six month group spent less than ten hours fixing problems. The number rises to 69% in the less than six month group. The second finding concerns how theft occurred. 84% of those surveyed responded that they did not know the thief. In fact, only 5% of victims of misuse of existing credit card accounts knew who committed the crime. Clearly, the foregoing facts point to constant vigilance as the key to avoiding identity theft and minimizing any damage if it does occur. What does this mean specifically as it applies to your credit cards?

While it is certainly necessary to exercise care in online credit card use, the attention devoted to high-tech occurrences of identity theft may sometimes obscure the fact that most abuse is the result of good old-fashioned hands on larceny. Thus, concentrating on a few simple things will greatly enhance your chances of avoiding enriching the lives of strangers at your expense. For example, sign the card as soon as you receive it. Of course, this does not mean much when, as in most cases, the merchant does not bother to check it, but it certainly does not hurt. In addition, though many transactions occur online and over the phone, there is still a massive amount of paper out there that will have vital credit card information on it. Make sure you keep all receipts, and shred those you do dispose of.

Speaking of paper, tear up the pre-approved card offers receive in the mail; otherwise, they can be stolen and sent back in with a change of address request. Good record keeping will also help keep the wolves from your door. Keep a list of all credit cards and their appropriate contact numbers handy in case of theft or loss. Also, be vigilant in checking monthly statements to make sure all purchases on a card are valid. Finally, though it may seem obvious, make sure you get your card back after making a purchase.

One of the findings of the 2006 FTC report on identity theft was that abuse of existing credit card accounts is one of the most common types of identity theft. Most of the time, it appears it is a crime of opportunity. As such, it is also often the easiest to prevent if a few simple precautions are taken.

Article Source: http://bytepowered.org/articles

Michael writes for credit card site Card Sense, where you can apply for a range of cards including bad credit credit cards and more.

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