Credit card fraud and identity theft are huge problems in the United Kingdom, and affect tens of thousands of people every year.

Credit Card fraud is the use of your card, or in some instances just your card number, to make unauthorised payments. This generally happens if your card is lost or stolen, your card is copied or someone manages to get hold of your card details and then uses them to make purchases over the phone or internet.

Identity theft refers to the stealing, or appropriation of your name and details without you knowing. Criminals would then use these details to take out large loans or card with substantial credit limits, or just to make payments or purchases in your name. This personal information is usually gained by going through your rubbish and locating bills, statements or documents that you have thrown away. This is particularly damaging in the long run, as it will result in you having a bad credit rating. If you have found yourself in this position, have a look at the quick guide on how to improve credit rating.

There are ways you can cut down your chances of falling victim to this kind of crime however. The best thing you can do to improve your chances of avoiding identity theft would be to make sure you always dispose of personal documents (bank statements, bills, etc) properly. If you can you should shred or burn these documents, ensuring criminals cannot get hold of your sensitive information. Even if you get mail for pre-approved credit cards or applications for bad credit credit cards then these should be destroyed too, along with all your other personal documents (often criminals can use the information in this kind of post).

You should also absolutely make sure you’re careful with your credit or debit card PIN number. Never keep them written down in your wallet or purse, and similarly don’t store them in your mobile phone. If your bag is stolen, then a thief would have all they needed to take money from you. Do your best to simply remember your pin number, and don’t keep it written down anywhere. If the pin your bank has sent you is difficult for you to remember, then it’s very easy to change. You should try and make sure you cover the keypad at cash machines whenever you’re withdrawing money. You should also be aware of any suspicious looking devices attached to the cash point, particularly around the card reader.

If you’re on the high street or shop via the telephone, then you should always keep hold of all receitps you recieve. This will allow you to check your reciepts alongside your monthly statements. Doing this will mean you have a good idea of what you’ve spend and what should be debited from your account. If you know how much should be coming out, you’ll be far better placed to spot any fraudulent transactions. If you’re making a live purchase via the telephone, you can ask for the exact amount that will be debited from your account, again giving you a firmer idea of how much should be coming out of your bank. Lastly, you should ensure you don’t give out your credit card details to anybody unless you’re completely certain of the companies authenticiy and legitimacy. Don’t ever be pressured into giving your card details, if you don’t feel comfortable, you can always make payment via an alternative method.