How you can avoid credit card fraud

Identity theft is rife but not completely unavoidable. While from time to time, we may slip up, there are a number of positive actions that you can take to safeguard yourself from identity theft. While some are most certainly commons sense, other are little know gems that can prove very effective.

� Dispose of financial information carefully. One of the most common methods of procuring information for fraudulent purposes is to collect discarded credit card receipts. This is usually combined with �skimming' - the process of taking a card's details, usually with a device that looks like a chip and pin machine. A fraudster using these methods would have enough details to duplicate your card and use it immediately.

� Check your statements regularly. Usually the duplicate card is used within hours to make expensive purchases very quickly. This is tell-tell sign that fraud has taken place, but unfortunately alarm bells may not ring until a certain amount has been spent or you notice irregularities on your statement.

In addition to shredding any paperwork that contains financial information, the same treatment should be applied to incomplete credit card application and offers as these can be pick from the rubbish and used to identify you as the next victim.

� Always sign your credit cards as soon as you receive them - an unsigned card has the potential to be used by anyone whose signature matches the writing on the back of the card.

A sensible precaution while abroad is to keep two different cards � one on your person and one in the hotel safe and alternate between the two credit cards during the trip. This means that in the event of loss or theft you will not have lost all your spending power.

Notify your credit card provider immediately in the even that your credit card is lost or stolen. This first call of action applies whether you are at home or on holiday. Once you have informed them, you are no longer liable for any purchases following your call that occur on your card. The maximum payment you will have to pay is �50 � and if any transactions occur over the telephone, or over the Internet then you will not be liable for a penny.

There are now many reputable credit card cancellation schemes that you can sign up to. These schemes usually charge a small annual fee and store all your card details (generally credit cards and debit cards). This one stop allows you to almost instantly have a professional cancel all of our card without you have to remember who you have credit cards with, dig up their phone numbers and spend a considerable amount of time on hold.

Lastly it can never be stressed strongly enough: avoid relaying your credit cards details to a third party over the phone unless you have verified the credentials of the party that you are speaking to and know that they are reputable,. Every day, unsuspecting consumers fall into a multitude of traps set by unscrupulous fraudsters

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