Criminals have become more sophisticated. Technology can now read and store your credit card information while the card is still in your wallet or purse. Even online stores sell stolen credit card information to anyone who can afford the cost!

One study found that American consumers’ most common financial fear is debit card and credit card fraud.

Credit card companies spend a lot of time, effort, and money to spot any questionable activity with your credit card. They do this by looking for warning signs and changes in your spending habits.

These are the standard ways your credit card company determines that your card might be stolen:

1. Where the purchase is made is of primary interest to your bank. This might include specific areas of your city or even other countries. Letting your credit card company know about your major travel plans would be best. If they think you’re in Boston but are actually in Italy using your credit card, it’s likely to be suspended.
2. The card is used to purchase a cash equivalent. Some thieves would prefer to purchase gift cards or pre-paid debit cards. These can then be used to purchase nearly anything else with less risk. These cards can also be sold to others.
3. The purchase is consistent with articles that criminals prefer to sell. Most criminals don’t purchase things to keep but items that can be sold easily and quickly for a significant amount.
4. The bank also notices if your spending habits change significantly. A significant change in your spending is of concern to your credit card company.

• Several purchases in a short period raise red flags. Those committing credit card fraud want to purchase as much as possible before the card is reported as stolen.

5. Testing the card is another activity performed by criminals. Before they take your stolen card out to buy something big, they’ll frequently test it on something smaller. It might be a candy bar or a small amount of gasoline.
   • The bank will probably freeze the account if the small amount is repeated. If you usually purchase gas on one side of town, but the gas was recently purchased on the other, the bank might also be alerted.
6. Guard your information online. With so much shopping and banking online, it can be easy for someone to get your information if you’re not careful. Do not use public computers or any public networks for your financial transactions.

• Use your credit card instead of a debit card. Credit cards usually have better reimbursement policies if your card is used fraudulently.

7. Shred your documents. Imagine how much a criminal could find out by going through your trash. Shred anything sensitive before you throw it out.
8. Review your monthly statements. One of the best ways to realize an issue is to check your statements and verify all charges. Ideally, you’ll keep a record of your purchases as you make them. You can compare your records with the credit card statement.

Banks use a variety of ways to determine if your card has been stolen. While this can be inconvenient, it’s better to be safe than sorry if that’s not the case. Credit card theft is a significant threat to your financial well-being. Ensure you protect yourself and take the necessary precautions so your bank won’t have a reason to wonder if your card is stolen!