Protect Your Credit Cards

If you are a frequent credit card user, chances are good you have had a brush with fraud. Maybe you noticed an unauthorized purchase on your statement or got a call from the card issuer asking about unusual transactions or suspicious card activity.

Your first reaction may be disbelief, especially if your physical card never left your possession and you take precautions online. Lots of questions ran through your head. Who would steal my credit card number? How did they get my card details? And this nagging question: what did I do wrong?

If fraudulent purchases have appeared on your credit card, you’re not alone in falling victim. In fact, credit card fraud was the most frequently reported type of fraud in 2022¹ and is predicted to rise in the future. Your credit card details may have been leaked in a data breach. Or they could have been lifted from a gas-pump payment system using a skimming device or hacked from a public Wi-Fi connection. You might never discover how it happened or who did it.

Read on for our tips on protecting yourself from fraud and what to do when criminals target your credit card.

Shop Smart and Be Vigilant

How you use your card in online and “card-present” settings can help you sidestep some common fraud traps.

• Use phone apps to pay — It’s hard for fraudsters to hack your credit card information from an app. Find out which services will work with your account. For example, UFCU supports several digital payment solutions.
• Follow good online habits — Avoid connecting to password-less or public Wi-Fi. Avoid providing credit card information by email and never provide it on social media. Stick to reputable shopping sites whose URLs start with “HTTPS” and check the address bar. Some browsers display a padlock when a site is secure, but not all do. Opt out of storing your credit information with merchants. Vary your passwords.
• Beware when paying over the phone — Verify who you’re dealing with by originating the call yourself. Confirm the amount you’ll be charged and check the payment receipt right away. Don’t dictate your card information out loud in situations where others can overhear.
• Watch for suspicious terminals — Payment terminals such as those found at gas stations, parking garages, and even ATMs can be hacked by thieves who attach device readers. Examine terminals for signs of tampering before entrusting your card to them.
• Keep an eye on card activity — Check transactions online daily if possible. If there is an expense you don’t recognize, report it right away. In addition, watch your credit report for new accounts or loans you did not authorize. You can get up to three free reports per year.

Tap Into Your Card’s Defenses

The card issuer has as much to lose as you do when credit card fraud occurs. Find out what security features your credit card offers to help you manage risk. For example, UFCU provides the following products and services to bolster Members’ defenses against credit card hackers:

• Card locking — The UFCU Mobile app lets Members lock their cards when not in use. This works best if you have one card for point-of-sale purchases and a different card from which billers can make automatic withdrawals (another security strategy).
• Chip card — UFCU has updated all cards to include a Europay, Mastercard, and Visa (EMV) chip to prevent “skimming,” or simply copying usable credit card details while it is passing through the hands of a restaurant worker, ATM, or gas-pump payment terminal.
• CVV number — A Card Verification Value (CVV) code is the 3- or 4-digit code on the back of the card. Merchants are not allowed to store this, so it should not be included if there is a data breach.
• Suspicious transaction verification — UFCU constantly monitors card accounts for unusual activity and contacts Members proactively if anything looks amiss. It’s easy for Members to answer a series of automated short questions to confirm or reject a purchase.
• Low or no liability for fraud — Many credit card providers, including UFCU, provide 100% liability protection on any fraudulent activity on your credit card. This is a big advantage that credit cards have over debit cards. Unlike debit card spending, the funds that back a credit card purchase have not already left your account. However, delays in reporting the theft can reduce your protection.

Act Quickly If a Fraudster Strikes

Even the most careful credit cardholders can find themselves with an unauthorized expense. If your luck runs out and a criminal obtains your card information, here’s what you can do:

• Call rather than email your financial institution because time is of the essence. There is a fraud- and theft-reporting number on the back of your card that you can save to your phone contacts now, just in case.
• Lock your card if it has been lost or stolen, or ask your financial institution to do so.
• If your physical card was stolen, file a police report.
• Don’t hesitate to report fraud because you dread the inconvenience of having your old card replaced. These tips can ease the pain:
  • Get instant credit card replacement. Did you know that any UFCU branch location can do this for you on a walk-in basis? Otherwise allow up to 10 days for your replacement card to arrive by mail.
  • Use two separate cards for automated billing and for everyday point-of-sale purchases. If you want to keep everything on one card (for example, because it’s a rewards card), keep a list of automated billers so you can inform them all of the change.
• Share your experience. There is no shame in having your credit card details stolen, and your candor may encourage other victims to step forward and get help.

We encourage you to adopt these steps to reduce your risk while enjoying the convenience of your favorite credit card.

¹ Federal Trade Commission (PDF)