5 simple steps to avoid credit card fraud
Your credit card may offer a wide range of perks — cash-back opportunities, travel rewards points, car rental insurance coverage and more. However, paying with plastic (or metal) also comes with the potential for fraud.
According to research from the Federal Reserve, credit card fraud has gone up over the past decade (rising from 14 million in 2012 to 30.4 million in 2015 alone). While credit card issuers have introduced new protections to help prevent fraud (such as EMV chip technology now standard across almost all credit cards), but these countermeasures aren't a magical solution to the problem. As hackers develop more sophisticated ways to steal valuable data, safeguarding your confidential financial information should be a top priority. Consider these tips to help keep your card earning rewards points while keeping the risks of being compromised low.
Want more credit card news and advice from TPG? Sign up for our daily newsletter.
Protect your mobile devices with passwords
Entering in a four- or six-digit code may seem like a hassle each time you need to respond to a message or scroll through your Instagram feed, but this basic safeguard will be your best friend in the worst-case scenario if you misplace your phone. Without a password, anyone who finds it is just a few clicks away from your banking app and the credit card statements sitting in your inbox.
Of course, you can now use face recognition technology and fingerprint technology to protect your phones and just have a numerical password as a backup. But the point is to just ensure that your phone locks so that not anyone can pick it up and go through it.
Avoid open Wi-Fi networks
From hotel lobbies to coffee shops to airports, many places offer free Wi-Fi to help customers stay connected. While complimentary Wi-Fi is convenient for your own routine (and amazing when you're traveling — very little beats realizing the coffee shop you've decided to spend your afternoon at comes with free Wi-Fi), it's also equally convenient for tech-savvy hackers who may be sitting at the next table. They can easily connect to the network and uncover a treasure trove of information — your credit card number, your usernames and passwords and other valuable data.
Simple rule: If you're transmitting any financial information, never use an open, easily hackable network. And even when you're just using your mobile device to scroll through Instagram, it's best to use a VPN whenever possible.
Related: How to secure your data when using public Wi-Fi
Set up account alerts
Your bank understands your purchasing patterns — where you live, where you shop, how much you typically spend per transaction and plenty of other lessons about your personal finance behavior. This knowledge can be a powerful force in fighting credit card fraud, and you can help your bank beat hackers by programming customized alerts for any suspicious activity. For example, you can ask your bank to flag any purchase that crosses a certain threshold.
Use a shredder
You may be accustomed to doing almost all your money management via apps, email and other paperless platforms, but you still have the burden of physical receipts and monthly account statements sitting in a pile in your office. While online hacking may be more commonly seen on television and movies, old-fashioned dumpster divers can and do still steal personal information found in the trash. To avoid letting your trash be recycled into a fraud attack, buy a shredder and use it when trashing any financial documents or personal information.
Monitor your accounts
Don't just count on your bank's technology to recognize signs of trouble. You're the real expert when it comes to your transaction history, and you can proactively review your account activity for any purchases you don't recognize. There's no need to wait for the monthly statement to arrive, either. Mobile banking has made it easier than ever to stay on top of your spending, credit score and overall finances. The more familiar you are with your own bank statements, the easier it will be for you to catch fraudulent behavior that your credit card issuer's tools may have missed.
Related: How to prevent credit card fraud
Bottom line
Fraud is an unfortunate risk that accompanies using plastic — whether credit cards or your debit card. The good news is that credit card issuers offer fraud protection to help give you some peace of mind when swiping. But the best-case scenario is to prevent credit card fraud from ever happening. Use these tips to protect yourself from falling victim.
Related: How (and when) to dispute a credit card charge
Additional reporting by David McMillan
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.