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Credit card fraud—really, you didn't buy that white elephant?

If you open your monthly credit card statement and discover a charge on it that you are quite sure you didn't make, you may be the victim of credit card fraud. It's important to act quickly to prevent further charges and to ensure that, in addition to possible credit card fraud, you aren't also a victim of full-blown identity theft.

You should keep all receipts for your credit card purchases. Sometimes, especially in high buying periods like Christmas, you may forget that you bought something. A quick glance through your receipts can confirm whether or not you did make the purchase. If you are satisfied you didn't, and that this is a potential credit card fraud, take the following steps:

• Immediately contact the credit card company that issues the card. Many companies have 24-hour toll-free lines to report lost credit cards and credit card fraud. Under federal law you are responsible for only up to $50 in unauthorized charges on your card and some credit cards companies won't even charge you that. Your card will be cancelled right away, and in some cases, a temporary card can be issued again quickly, so your inconvenience is minimized.
  
  
• Call the police and the Federal Trade Commission, especially if you suspect your credit card fraud may explode into identity theft.

There are some preventive measures you should take with your credit cards, including:

• Check your consumer credit report at least once a year to ensure that credit card fraud hasn't affected your credit rating
  
  
• Remove your name from pre-approved credit card lists (contact any of the three consumer credit agencies to do this)
  
  
• Keep the number of credit cards you carry to a minimum
  
  
• Shred all personal information before you throw it out (practitioners of credit card fraud have no problem dumpster diving for your tossed bill statements)

Credit card fraud is one of the fastest growing crimes in the United States today. But it doesn't have to happen to you.

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