Callers, clerks & thieves: credit card fraud can happen in many ways Published Aug. 22, 2008 By Capt. Joshua Williams 52nd Fighter Wing Legal Office SPANGDAHLEM AIR BASE, Germany -- Credit Card fraud is serious business that affects the lives of millions of Americans each year. While theft is the most obvious form of credit and charge card fraud, it is not the only way fraud occurs. A more subtle form of fraud is "misappropriation" -- the use of credit card numbers (not the card itself) without permission. Misappropriation may occur in a variety of ways: · A phone caller requests a card number and its expiration date to qualify for a special discount vacation. · A thief rifles through trash to find discarded receipts or carbons to use the card numbers illegally. · A dishonest clerk makes an extra imprint from a credit or charge card for their personal use. How to guard against credit and charge card fraud Here are some suggested precautions anyone can take to help protect against credit and charge card fraud. Instruct any other person who is authorized to use personal accounts to take the same precautions. · Sign new cards as soon as they arrive. · Don't carry cards in wallets, keep them separate. Keep a record of card numbers, their expiration dates, and the phone number and address of each company in a secure place. · After giving a card to a clerk, keep the card in view. Retrieve the card promptly after using it. · Avoid signing a blank receipt, whenever possible. Draw a line through blank spaces above the total after signing card receipts. Void or destroy all carbons and incorrect receipts. · Save card receipts to compare with your billing statements. · Open billing statements promptly and reconcile card accounts each month, similar to balancing a checkbook. · Report promptly and in writing any questionable charges to the card issuer. · Notify card companies in advance of a change of address. In addition, here are some things not to do: · Never lend a card to anyone. · Never leave cards or receipts lying around. · Never put card numbers on a postcard or on the outside of an envelope. · Never give card numbers over the phone unless initiating a transaction with a reputable company. Any questions about a company can be answered by a local Consumer Protection Office or Better Business Bureau. What to do if cards are lost or stolen If credit or charge cards are lost or stolen, call the issuer immediately. Most card companies have a toll-free number for reporting missing cards. Some companies provide 24-hour service. By law, once loss or theft is reported there is no further liability for unauthorized charges. In any event, the maximum liability under federal law is $50. What to do about suspected fraud or billing problems Anyone who suspects that someone has illegally used their account number, send the card issuer a letter that includes name, account number, and the questionable charges and reasons. Direct letters to the billing error address provided on any statement, it must reach the creditor within 60 days after receiving the first bill containing the error. Send the letter by certified mail, with a return receipt requested, to show proof that the letter was received. For faster action, call the card issuer, using the special numbers that many card issuers list on their billing statements, but follow up the phone call with a letter. Only a letter protects individual rights under the Fair Credit Billing Act. The card issuer must acknowledge receipt of a letter or correct the error within 30 days. Or, they must investigate and either correct the mistake or justify the charges within two billing cycles or 90 days, whichever is less. Customers may be asked to sign a statement under oath that they did not make the purchase(s) in question. Anyone who feels they have been a victim of credit card fraud can contact the Spangdahlem Legal Office and talk to an attorney.