How you can avoid credit card fraud

There are many ways to help protect yourself against credit card fraud, some are just common sense but others are less well-known and can prove a real asset in keeping your personal finance secure.

• 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.

• You can also sign up with a credit card cancellation scheme to protect yourself. These schemes usually charge a small annual fee and store all your card details (generally credit cards and debit cards). If any of your cards get stolen, they will handle the cancelling and re-ordering of all your cards for you – it's a one stop shop rather than trying to remember which cards you've got and contact multiple providers.

Lastly it can never be stressed strongly enough: never give out any of your account or credit card details over the phone, email or Internet form unless you initiate the call and you know the company is reputable. There are a surprising number of scams out there that people fall for everyday

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