'Tis The Season For Fraud

AH, THE HOLIDAYS. It's a time to throw the budget out the window and splurge on presents, entertainment and meals out. But remember: this is also a ripe time for criminals to hit crowded malls and splurge -- with your credit cards.

Alarmingly, half the cases of credit-card fraud are a result of a card being lost or stolen, says Chris Conrad, senior vice president of fraud management at Bank One. And even though consumers aren't held liable for fraudulent charges, the time it takes to straighten things out could cost you dearly. (We suggest you spend that time creating a holiday budget to help you avoid impulse purchases so you can emerge from the holidays without a pile of credit-card debt. Our Holiday Spending Worksheet will help.)

To safeguard yourself against credit-card theft, follow these guidelines provided by identity-fraud experts and credit-card issuers:

Be prepared. Write down your credit-card issuers' customer-service numbers on a slip of paper and always carry it with you, so if a credit card is lost or stolen you can contact the issuer immediately. "You don't need to have the credit-card numbers written down," says Bank One's Conrad. "The credit-card issuer will be able to locate your account only by your name." Put that slip of paper in a place other than your wallet. After all, you don't want it stolen along with your credit cards.

Trips to the mall. Don?t leave any credit cards in the glove compartment of your car --a high proportion of all credit-card thefts are from glove compartments, says Catherine Keary, a spokeswoman for Chase Cardmember Services. Make sure you get your card back after every purchase.

Using ATMs Protect your PIN by shielding keystrokes from other people, especially if you're at a mall or a supermarket. If possible, avoid using ATMs in those crowded shopping areas -- make a trip to your bank instead. Also, says Keary, don't disclose your PIN to anyone. "No one from a financial institution, the police or a merchant should ask for your PIN. You are the only person who needs to know it."

Online shopping It's hip, convenient and saves time. But make sure your online credit-card purchases are made through a secure Web site, says Conrad. Your personal information is protected if you see an icon picture of a padlock or a solid key at the lower section of your browser window. Be suspicious if a merchant asks you for inapproprite information such as a social-security number. All a merchant needs is your name, address, credit-card number and expiration date, Conrad says. "Anything outside of that should be viewed with caution." Visa cardholders should check if the merchant participates in "Verified by Visa," a special program that gives online shoppers an extra level of protection by having them choose their own username and password when shopping online.

Receipts and statements. Keep receipts until you receive your statements and reconcile the information. Then, shred receipts before you throw them out. As for statements, examine them under the microscope. Well, not really. But check them carefully, especially for small purchases. According to Conrad, criminals will sometimes make a small purchase first -- using the actual card or the account number online -- to see if the account is valid and the purchase goes undetected. Then they splurge on the expensive stuff.

Travel arrangements. If you're traveling for the holidays, make arrangements with someone to collect your mail, says Ronni Burns, director of business practices at Citi Identity Theft Solutions, a program sponsored by Citi Cards. "You probably have bills with a lot of information inside. Either let the post office hold it or have a trusted person take it out," she says.

For more on identity theft and credit-card fraud, visit Your Credit Card Companies' Web site at www.yourcreditcardcompanies.com, or try the Federal Trade Commission's Web site at www.ftc.gov.