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Wise choice of bread
Last fall I got an email from what looks like my web host. The email claimed there was a problem with my billing information and was asked to update it. I clicked the link in the email and entered my credit card number, thinking that a recent change I made to my site must have caused the problem.
The next morning I logged into my credit card account and found two large unauthorized purchases. The scammer successfully phished my payment information from me.
This security glitch is pretty frustrating for a personal finance writer. I know it’s best not to click on an email link allegedly sent by my bank, credit card lender, or other financial institution. But since the email came from a source that was not specifically financial (and because I was thinking about the changes I made to my website the day before), I allowed myself to play around.
Fortunately, since I check my credit card balance on a daily basis, scammers have not gotten away with it. However, it’s best to take the initiative to avoid credit card theft so you don’t get stuck in a cleanup that took me months.
Here’s how you can protect yourself from credit card theft.
Protecting your physical credit card
Stealing your physical credit or debit card is in some ways the easiest way for a fraudster to get their hands on your sweet, sweet money. With the card in hand, the fraudster has all the information needed to make fraudulent purchases: credit card number, expiration date and security code on the back.
This means keeping your physical cards safe is one of the best ways to protect yourself from credit card theft. Don’t carry more cards with you than you intend to use. Having every card you have in a ballooning wallet increases the likelihood that someone could steal it when you are not paying attention, and you may not realize that it is gone if you have multiple cards.
Another common place where you can get separated from the map is in a restaurant. After paying the bill, it can be easy to forget that you’ve put your card aside (especially if you’re enjoying adult drinks). So get in the habit of confirming that you have the card before leaving the restaurant.
If you find that you are missing a credit or debit card, immediately call the bank and report it was lost or stolen. The faster you try to block the card, the less likely it is that fraudsters will be able to make fraudulent payments. Make sure you have your bank’s phone number recorded somewhere so you can quickly contact them if your card is stolen or lost. (See Also: Don’t Panic: Do This If Your Identity Is Stolen)
Recognition of card skimmers
Credit card thieves also use high technology to get your information. Credit card skimmers are small devices that are placed in a place suitable for a card scanner, such as a gas station or ATM.
When you scan your card for payment, the skimmer captures all the information stored on your card’s magnetic stripe. In some cases where a skimmer is installed on the ATM, there is also a tiny camera set up to record your PIN entry so that the fraudster has all the information they need to access your account.
The good news is that the card skimmer can be found in the wild. Gas stations and ATMs are the most common places to see skimmers. Typically, these devices will often stick out of the panel, rather than sit flush with it, as a legitimate credit card scanner should. Other red flags to look out for are scanners that seem to wiggle or move slightly instead of being firmly attached, or a pad that appears thicker than usual. All of this could potentially indicate the presence of a skimmer.
If you find something unusual, go to another gas station or ATM. God saves man, who save himself. (See also: 18 Amazing Ways to Steal Your Identity)
Protecting credit card numbers at home
Your home is another place where thieves will look for your sensitive information. For starters, you will likely receive credit card offers, the cards themselves, and your statements in the mail. While mail theft is relatively rare (it’s a federal crime after all), it’s still a good idea to collect mail every day and hold it back when you leave town.
However, once you receive the documents associated with the card in your home, you can still be vulnerable. Because credit card scammers aren’t afraid to dive into the trash can a bit to get their hands on your credit card number. This is why it is recommended that you destroy all documents with your credit card number and other identifying information before you throw them away.
Finally, protecting your credit cards at home also means being careful about who you share information with over the phone. Unless you initiate a phone call of your own free will – not because you’re calling someone who left a voicemail – you should never give your credit card numbers over the phone. Scammers will pose as customer service agents from your financial institution or the merchant you visit frequently to get your billing information. Of course, you can hang up and call the facility yourself on the main phone number.
Security of your cards on the Internet
You should never provide your credit card information via a link in an email purportedly sent by your financial institution or merchant. Scammers can make their fake emails and websites legitimate and that is why I became a victim of this scam.
But even though I was momentarily lost in my judgment that my “web host” was being asked for payment information, there were other warning signs I could have looked out for if I had been careful.
The first is the actual email address. These fake emails often have a correct-looking display name, and this is the only thing you might see in your email. However, if you hover over or click on the display name, you will see the actual email address from which the message was sent to you. Illegal addresses do not match the email address format that you will see from a legitimate company.
In addition to this, looking at the URL that appeared when I clicked on the link might tell me that something weird was going on. Any legitimate site that needs your financial information will have a secure URL to accept your payment. Protected URLs start with https: // (not http: //) and have a padlock icon in the browser bar. If these items are missing, you do not need to enter your credit card information. (See also: 3 Ways Millennials Can Avoid Financial Fraud)
Daily activities that keep you safe
In addition to these safety precautions, you can also protect your credit cards with the day-to-day decisions you make. For example, using strong, unique passwords for all of your online financial services, from shopping to banking, can help you prevent theft. Keeping these strong passwords safe – that is, not written on notes on your laptop – will also help protect your financial information.
Regularly reviewing your credit card and bank statements can also help ensure that you are the only one shopping with your credit cards. It was this daily habit of mine that made sure my scammers didn’t actually get the computer they were trying to buy with my credit card. The fact that I check my balance on a daily basis meant that I was able to close the fraudulent sale before they received the item, even though I fell to work protecting my credit card information.
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