Easy Ways to Protect Yourself from Credit Fraud

Credit Cards are a way of life. Every day millions of Americans use their credit cards to make purchases on everyday items like groceries and gas, to big ticket items like televisions, airline tickets and hotel stays. Credit cards also offer the safest way to make a purchase in today's identity theft world. However, just because credit cards are the safest way, that does not mean they are totally safe.

According the federal trade commission, 25% of all identity theft took place using credit cards in 2006. With over 200 million transactions happening each day across the country, credit card identity theft is at an all time high.

If you are worried about identity theft, don't be, by following these easy steps you will live an identity theft free life.

• Zero Liability Policy - Cost = Free. Most zero liability polices state that once a claim, your money be immediately refunded to you. The credit card company will take the claim from there and do it's own investigation, and not burden you with the fraudulent purchase. It is imperative that you know and understand your credit card companies zero liability policy as not all are the same. If your credit card company does not offer one of these policies, it is time to get a new credit card.
• Credit Monitoring Service - Cost = $10 - $15/month. Most banks offer credit monitoring services for a small monthly fee. These services regularly monitor reports from various credit history agencies, like Equifax, Trans Union, and Experian, and send out customized alerts when things out of the ordinary take place, like a 20 point jump in your credit score or a purchase outside of your regular pattern.
• Identity Theft Insurance - Cost = $10 - $15/month. Most banks offer this. Identity Theft Insurance protects you where your zero liability policy does not. This covers most forms of identity theft and is a great safety net in case someone decides to target you.
• Photo Security - Cost = Free. Perhaps the best way to prevent in person credit card identity theft. While signatures can be forged, it is pretty tough to make a purchase with someone else's picture on a credit card. Be careful though, as a lot of credit card identity theft occurs online, and physical pictures become obsolete.
• Temporary Purchase Numbers - Cost = Free. Most banks offer this. A temporary purchase number allows you to make a one time purchase using a bogus number that links back to your credit card account.

Identity theft can be avoided, follow these simple steps and you will greatly reduce your chance of being the next victim.