Credit Card fraud is big business, both for the people who perpetrate it and for the companies that build software to try and stop it from happening in the first place.  The Secret Service (the governmental agency tasked with stopping this type of crime) describes the total losses to businesses and consumer as in the “billions of dollars.”  Here at Reputation.com, we’re often asked to test or review many of the top software solutions designed to stop credit fraud.  And though I have seen a lot that I like, I really think that the best prevention really come down to some basic sleuthing performed by the individual.  Here are my top 5 tips for how to make sure you don’t become a victim of credit card theft:

1.  Make sure to review your credit card statement, regularly. 

I recommend that you take the time to do this online, at least once a week.  Many of the credit card companies also allow you to set up alerts for certain types of charges, or to get emails with balance updates.  You may also want to set up an aggregation tool to help you review data quickly across all of your accounts.   I like the security features and the ease of use that Aaron Forth and his team have built at mint.com.

2. Shred your paper statements as soon as you’ve reviewed them. 

Better yet, save some trees and don’t receive paper statements (you can also do this through your online account).  Simply discarding your paper statements in the trash without shredding provides a rich target for thieves who want to mine you personal information and transaction data.

3. Watch out for imposters who pretend to be affiliated with your credit card or banking institution. 

You should be very skeptical when you are receiving a phone call or an email from somebody claiming to be from your bank or credit card issuer.  Unless they can positively identify multiple pieces of information that are personal to you (e.g., the kind of card you have, recent transactions, your last payment amount, etc.) you should not provide additional information to the person.  It’s not good enough for them to simply know your name and address – this information is all too easy to get from the web.  When in doubt, it’s better to be safe and call the number on the back of your card to verify if there are any issues on your account.

4.  Be prepared to act if there’s a problem.

Most card issuers can cancel you account instantaneously if you call them.  Keep a file with the numbers of your credit card issuers and/or banks and make sure you bring this when traveling.

5.  Stay aware of your rights and benefits as a card holder. 

Federal law protects unauthorized use of credit cards for any amount over $50.  The better card issuers actually offer complete protection from any fraudulent charge at any time.  You should inquire to see what your protection is.

6. A bonus tip from Reputation.com! 

If you want to protect the data that most identity thieves use to pose as you, we think you should check out MyPrivacy.  The product sweeps the web for public evidence of your address, age, income data, names of your relatives and other sensitive personal information and then we allow you to lock down those records through our proprietary protection.  The best defense!  I’d be happy to let readers of this post try it for a month for free.  Click this link and you’ll automatically have a code for a free month of MyPrivacy.  Stay private, stay protected.