Credit card fraud, often associated with identity theft, is committed with the intention of obtaining merchandise or goods without proper payment, or done to acquire unauthorized funds from a credit card account. Unfortunately, credit card fraud is a common offense that many people have fallen victim to. It is the kind of crime that may go unnoticed for a long period of time and can make people feel uneasy and stressed once they find out that their credit card account has been compromised.

Fraud of this nature often begins when a physical credit card is lost or stolen. If a card is not reported lost or stolen, the account is still considered active. A thief may use the credit card for days, weeks or even months before a cardholder knows what has happened. Various purchases can be made–perhaps a pair of running shoes at a sporting goods store, or a five-course meal at a fancy restaurant–and a cardholder may not know of any fraudulent use until he or she receives their billing statement.

Credit card fraud can also occur when any information associated with a credit card account has been illegally obtained. For example, important and sensitive credit card data can be stolen from old receipts or paper billing statements that have not been disposed of properly. Credit card information can also be intercepted when cardholders make purchases from online sources that do not have optimal security. In the latter example, failure in online database security may cost multiple accounts to be compromised.

There are many ways to avoid credit card fraud. People should sign their cards as soon as they receive them. They should also void receipts that are incorrect and destroy carbon copies. It’s important to promptly notify credit card companies of questionable account activity. Also, people should reconcile accounts periodically and compare receipts with billing statements. It is smart to only supply card information to companies that you believe take high security measures.