While you may understand the risks of losing your wallet, that isn’t the only activity that can put your credit card numbers into the wrong hands. From fraudulent skimmers at retail registers to theft from digital transactions, fraudsters have numerous tactics to obtain access to consumers’ finances. Understanding all physical and digital risks, how to prevent credit card fraud, and what to do when an account is compromised can help reduce the impact of lost or stolen cards.
This list of credit card security tips can help you lock down physical cards, choose safe digital payment methods, and monitor and report unauthorized use. When you understand how to protect your finances, you can enjoy the convenience of credit cards with fewer worries.
5 Physical Security Tips for Credit Cards
Despite the popularity and convenience of digital shopping, that’s not the only target for scammers. Many fraud attempts can still start in the real world through lost wallets, stolen mail, and card skimmers. A few simple habits geared toward credit card safety and security can lower your risk quickly. Use these tips to protect your physical card from exposure:
1. Carry Fewer Cards
Limiting the number of cards in your wallet to one or two can minimize your potential exposure to fraud or loss. If your wallet or purse ever goes missing, you’ll have fewer cards to report to the issuers. Just remember to store additional cards in a secure location at home, such as a locked drawer or fireproof safe.
2. Know What To Do if Your Wallet Is Lost or Stolen
If your wallet is lost or stolen, contact the issuer of each card immediately so they can disable them and monitor for unauthorized charges on the credit cards. It may be helpful to keep the issuer’s contact details at home in a safe place so you don’t need to second-guess who to contact, especially if your phone was also lost or stolen. Many credit card and bank mobile apps feature tools to control your cards remotely, to quickly prevent someone from using your card.
According to the FTC, freezing your credit may also be worth considering after losing your wallet, especially if it contained personally identifying information, like IDs or a Social Security card. A freeze prevents anyone from opening a new credit account in your name, and it lasts until you lift it.
3. Practice Point-of-Sale Safety
Generally, tap-to-pay is the safest way for in-person purchases, inserting a chip-enabled card is the next safest, and swiping is typically the riskiest. Tapping generates a unique, one-time encrypted code for the transaction, which reduces fraud risks if the terminal is compromised. If you must swipe your card, look for anything on the payment terminal that looks odd or loose; these could be signs that a skimmer—an illegal capture device placed on a legitimate card reader—has been installed. If you’re using an ATM, look for one inside a bank branch or near a business where it is less likely to be tampered with due to increased surveillance and activity.
4. Protect Your PIN
Having your PIN can make it easier for someone to access your bank account or use your card. Memorizing your PIN and keeping it private can help prevent it from getting into the wrong hands. Also, take these precautions:
- Avoid using common keypad patterns—1234, 1111, or 2580—that are easy for someone to guess.
- Cover the keypad with your hand or body when entering a PIN to block someone’s view over your shoulder.
- Use contactless payments or digital wallets when possible because these are more secure than a physical card and won’t require entering a PIN on a physical terminal.
- Use caution when replying to any request for your credit or debit card details; legitimate bank officials won’t ask you for your PIN over the phone or via email—if you’re unsure, hang up and call the bank directly.
5. Destroy old, unneeded records:
Once you’ve paid off old bills and no longer need them for record-keeping purposes, shred or otherwise destroy them. This will help prevent scammers from finding personal information or financial details for identity theft schemes.
5 Online Safety Tips for Credit and Debit Cards
Online shopping and digital banking are convenient, but they also feature inherent opportunities for scammers to steal card information through phishing, data breaches, and account takeovers. The good news is that our credit card safety and security best practices can help you limit scammers’ opportunities and protect your financial details whenever you shop, pay, or manage accounts online. Here are a few tips to remember:
1. Don’t Save Your Card Details Everywhere
Though saving your card on shopping websites is convenient, it still carries inherent risks that you can easily avoid by manually entering your information for each purchase. Not storing your details removes one potential avenue for scammers to get to your personal data. If you are going to allow sites to store your card info, follow password best practices and make sure the website employs highly secure payment portals and other advanced online protections.
2. Use Virtual Card Numbers for Online Shopping
A virtual credit card number is a temporary 16-digit number tied to your credit card account and generated by your issuer or a digital wallet (Google or Apple). This is typically used for online or in-app purchases and helps mask your actual account numbers from anyone trying to access them. Depending on your card provider, you may be able to enable virtual numbers in your issuer’s app or your preferred digital wallet, and then select the card at checkout. If a merchant is breached, the virtual card can limit your exposure.
3. Turn On Real-Time Alerts and Set Thresholds
Make a habit of reviewing your credit card and bank statements for unauthorized charges. This can help you identify a compromised account early and potentially reduce the damage. Apps have features that can give you better control over your account management to:
- Simplify transaction tracking and provide real-time updates on your finances.
- Manage digital alerts for suspicious activity and balance monitoring.
- Set spending or ATM withdrawal thresholds to limit someone’s access to your funds.
4. Use Strong Passwords and 2FA
Updating your password is one of the easiest ways to improve your credit card safety and security. Avoid these common phrases with sequential numbers (letmein1234 or password1111), and the names of family members or pets. Stick to these credit card password security tips:
- Length: At least 16 characters is a good benchmark—12 or fewer characters is easier to crack.
- Unpredictable: Select a mix of uppercase and lowercase letters, numbers, and symbols that do not have personal associations—or use a password generator to do this.
- Unique: Do not use the same password for multiple accounts; this makes it too easy for someone to guess one and gain access to all your accounts.
5. Be Scam-Skeptical
Knowing how to prevent credit card fraud starts with learning to spot suspicious behavior. A request for your card information accompanied by urgency, threatening language, or unexpected prizes commonly signals a phishing scam. Understanding what to look for is an essential first step in protecting yourself from cybercrime, and selecting a credit and debit card issuer with clear security measures is another.
Credit vs. Debit Card Fraud: Why the Difference Matters
If you take credit card safety tips to heart and implement precautions for physical and digital security, you’ll add another layer of protection between your money and scammers. Unfortunately, debit fraud can instantly drain your checking account and cause a ripple effect of bounced checks, denied payments, or NSF fees. Resolving credit card fraud versus debit card fraud is typically easier because you can identify and dispute charges before paying them. Due to the safety and security provided by credit cards, you may want to consider which method is best and when, such as:
- Debit for everyday, lower-risk spending when you want purchases to come directly from your checking balance and help you stay on budget.
- Credit for online shopping, travel bookings, subscriptions, and any other high-cost or potentially risky purchases.
What To Do If You Suspect a Credit Card Security Breach
Report unauthorized credit card charges to the issuer and the police immediately. Check your credit report for signs they’ve gained access to additional accounts or opened new ones in your name. You can request a free credit report weekly to monitor the situation until the issue is resolved.
You can also take steps to minimize the impact of financial fraud. The Fair Credit Billing Act allows consumers to dispute bills with errors for up to 60 days. Acting soon after discovery can potentially minimize your liability and help facilitate a prompt investigation. Take these steps to help reduce further financial exposure:
- Change your PIN and passwords, and enable two-factor authentication.
- Freeze or cancel the card (if the issuer hasn’t already).
- Check other accounts and your bank statements for any surprising charges, and watch for small ‘test charges’ that often precede larger fraudulent transactions.
- Update any automatic payments so they do not attempt to charge the canceled card.
- Contact one of the three major credit bureaus: Equifax, Experian, or TransUnion to report confirmed fraud and prevent scammers’ actions—increasing your credit utilization ratio or requesting hard inquiries—from impacting your score.
Taking a few minutes to understand how to prevent credit card fraud through better security habits can go a long way toward financial safety. A reliable, secure card can too. Explore Arthur State Bank’s card payment solutions with built-in security and mobile tools to help make locking down your accounts easier.
Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs from checking and savings to retirement accounts, mortgages, and other personal loans, visit arthurstatebank.com.
