Protect Yourself This Holiday Season From Credit Card Fraud

As the holiday season kicks into high gear, so does credit card fraud. Keeping a close watch on your accounts and reviewing your credit report are ways to avoid becoming a victim. In this blog, we will discuss the things you should look out for and how you can protect yourself from credit card fraud during this season of giving.

Types of Fraud

Fraud occurs all year long but increases during the holidays as people conduct more credit card transactions as part of their seasonal spending. Becoming a victim of identity theft or some other fraud can negatively impact your credit and your finances, as well as create emotional stress during a time that is already stressful for many.

The first thing to know is that holiday fraud comes in many different forms. Being able to recognize them will help you keep your money safe. Here are three financial scams that can be predominant during the holiday season:

1. Online Shopping Scams: Shopping online can save you time, especially during the holiday season. But that convenience comes with risks, according to Experian.com. First, be sure you are shopping on a trusted retailer website that displays the “HTTPS” in the URL and has a padlock icon in the browser bar. When making payments, use your credit card instead of your debit card. Credit cards offer better fraud protection and you avoid exposing your deposit accounts to risk. Also, consider using secure payment methods, such as Apple Pay®, PayPal® or Google Pay®.
2. Phone Delivery Scams: During the holiday season, scammers may send you fraudulent text messages saying your packages can’t be delivered and want you to click on the link provided. Be aware of text messages from unknown senders and don’t click on any links you do not recognize. These links could lead to malware or viruses on your devices that could steal your financial information. Always check directly with the retailers to determine the status of your orders.
3. Skimming Devices: Before swiping your credit card, check the card reader to be sure there is not a skimmer attached to it that can steal your credit or debit card information. Check for cracks or damage to the reader, especially if it looks bulky or unusual. If you are using an unfamiliar ATM, be sure to inspect the card input slot for a skimming device. You can avoid swiping or inserting your credit card if your card comes with an EMV chip that lets you make contactless payments, including tap-to-pay and digital wallets.
4. Be Cautious Using Public Wi-Fi: We know that online shopping can occur anytime and anywhere. If you’re using public Wi-Fi to compare prices and then make a purchase, you might want to think twice. Do not enter your credit card information while connected to unsecure public Wi-Fi because that information can be stolen. If you need to use public networks, consider adding a virtual private network (VPN) to your smartphone.

How to Protect Yourself From Fraud

While there are several ways that fraudsters try to get your credit card information, there are things you can do to protect yourself, according to Equifax.com. The first is to always check your credit card and debit accounts via online banking to be sure every transaction is correct and legitimate. One good tip is to set up email and/or text alerts with your accounts to get real-time transaction notifications.

Here are other ways to protect yourself:

• Check Your Credit Report: Reviewing your credit report regularly will let you view all your credit accounts. This lets you see if any new accounts were opened that you were not aware of. You’ll also see the current balances that you owe, any closed accounts and your payment history. You can get a free credit report each year from all three U.S. credit bureaus at annualcreditreport.com.
• Be Aware of Phishing Scams: Do not enter your credit card information through unsolicited emails that appear to be from familiar retailers. Scammers often send fake emails and texts pretending to be from retailers.
• Freeze Your Credit Profile: If you do not plan to apply for any new credit accounts, you can place a freeze on your credit profile with the credit bureaus. This prevents fraudsters from applying for credit accounts under your name.

Avoiding debit card and credit card fraud this holiday season will let you shop with greater confidence knowing that you’re keeping your finances safe. While credit cards are a great way to pay for holiday spending, using your credit wisely is a smart method to manage your personal finances.

Use Your Credit Card Responsibly

Having too much credit card debt can snowball into a financial issue, especially if you’re only paying the minimum payment amounts required each month. You can avoid this by sticking to a holiday budget that fits your finances. Keeping a spending limit lets you pay off your credit debt after the holidays within a reasonable amount of time. It also lessens the amount you pay in interest.

Using your credit card responsibly also lets you earn rewards if they are available with your card. Some credit cards, such as Travis Credit Union’s Platinum Visa, let you accumulate points that can be redeemed for travel, gift cards, charitable donations, merchandise and more.

How Travis Credit Union Can help

Travis Credit Union is focused on your financial wellness, including free online courses on a variety of financial topics throughout the TCU Knowledge Base. Visit our Fighting Fraud page to learn more about ways to protect your finances. Travis also offers credit cards and personal loans with competitive interest rates. Visit Traviscu.org to learn more about how TCU can help you today.