However, even given the rampant incidences of identity theft, there are precautions you can take to better protect yourself from becoming a victim. One of the best ways to prevent identity theft is to simply become aware of the many ways in which identity thieves have found to steal your identity.

Here are some of the ways identity theft happens:

• Rooting through your trash – Yes, this is one of the most common ways identity thieves get a hold of your credit card information. The easiest way to ensure that a thief doesn’t come in contact with your personal information is to shred everything before it hits the trash.
• Fooling you through email – Many identity thieves are sending bogus emails to a great number of people, posing as their creditor and asking for information to verify an account. Always remember that your credit card company will never send you an email asking you for any type of personal information.
• Fooling you through the Internet – The next time you shop at your favorite online retailer, make sure the website address is legitimate, as there have been identity thieves that have actually produced copycat websites that look just like a trusted website, but are set up to do nothing more than steal your credit card information.
• Stealing your purse or wallet –  It begs repeating, but it is vital that you keep your wallet or purse close at hand anytime you leave the house. Most identity thefts merely take advantage of a good opportunity; namely, an individual that leaves his or her wallet or purse unattended.
• Skimming your credit card information – The next time you hand over your credit card to a waiter or sales clerk, pay close attention to where they are taking your card. Small devices, called skimmers, now enable identity thieves to quickly scan your credit card information before you even know it.

Unfortunately, many of us do not, which therefore leaves us quite vulnerable to a credit card thief. It is important to understand that credit card thieves are constantly finding new ways to steal other individuals’ credit card numbers and identity. Although we can’t always protect ourselves from credit card thieves 100 percent of the time, there are many things that we can do to help ourselves from becoming an easy target:

• Don’t let a clerk walk away from you when you are making a retail purchase. If your credit card is out of sight it can spell trouble in terms of credit card fraud and identity theft. If possible, request that the clerk remain at the counter with your credit card at all times.
• Never give out your credit card information over the phone unless you have initiated the phone call and you have researched the company’s credibility. Remember: a company will never, ever initiate a phone call and ask for any of your personal information, including credit card numbers.
• Never give out your personal information or credit card information through an email. And never, ever provide information of this kind if a company solicits you by email claiming to be your bank or credit card company.
• Never give out your credit card information on a website that isn’t secure, or one that you don’t fully trust. It is best to always shop with trusted retailers on the Internet and to make sure that your computer’s antivirus and firewall protection are comprehensive and up to date.
• Invest in a good shredder and take the time to shred all of your personal documents, including credit card statements and credit card offers.
• Don’t carry around a wallet full of credit cards. Instead, carry only the credit cards that you will need and keep the rest at home.
• Check your credit card statement carefully and immediately report any activity that you don’t immediately recognize. Remember: many credit card thieves will charge only small purchases so that many credit card customers won’t catch them!

This new site (found at www.federalreserve.gov/creditcard), which is maintained by the Federal Reserve Board, has been launched to provide consumers with a basic guide to understanding the credit card industry.

Some of the useful features on this new website include:

• An Interactive Tools and Features section, which includes an area about learning more about a credit card offer you may have received. Located in an easy-to-open PDF file, this handy link allows you to better understand the terms and features of any credit card offer. Also located in this section is a guide to understanding your statement.

We think this section is particularly useful, as it breaks down all of the legal credit card terms into easily understandable language so that you can better navigate your monthly credit card statement.

Finally, the last section of this Interactive Tools and Features section is a Pay it Off calculator, which allows you get an estimate of how long it will take to pay off your credit card balance, given your interest rates and monthly payments.

• The Federal Reserve also has a great section on their website that allows credit card customers to watch their PSA; this video essentially teaches consumers how to navigate the credit card process and get the most out of their credit cards.
• The What you Need to Know: Credit Card Rules section is designed to educate and inform consumers on the new credit card legislation and how it can change the way your credit card company handles your credit card account.
• A small section called 5 Tips for… on the Federal Reserve website provides easy-to-follow steps for doing a number of things, such as “Improving your Credit Score” and “Getting the Most from your Credit Card.”
• The Federal Reserve credit card website also features additional sections that allow you to learn more about: options, interest rates, fees, lost or stolen credit card, billing errors, general complaints and managing your credit.

It is important to note that no one – and I mean no one – is safe when it comes to credit card scammers.

Case in point: the Department of Veteran Affairs recently sent out a warning to all veterans, as the latest credit card scam appears to be targeting this group.

The scam against veterans works when a scammer calls a veteran, posing to be a VA worker. The scammer then proceeds to ask for the veteran’s credit card information so that he/she can update the veteran’s prescription information. The scammer often informs the veteran that the VA has changed the process of dispensing prescriptions, so they need a credit card to do so.

Veterans need to understand that the VA will NEVER ask them to disclose their personal or financial information over the phone.

Although this scam is not new, the Department of Veteran Affairs has noticed a sharp increase in this type of scam as of late. And credit card scams are just one of countless scams targeted at veterans at any give time. Other scams targeting both active military and veterans include life insurance scams, payday loan scams, car title scams, repair scams and loads of fraudulent discounts.

How to Protect yourself from Credit Card Scammers:

• Never reveal personal or financial information to ANYONE unless you have initiated the call.
• If you are ever suspicious of a call, simply hang up and contact the company directly to address the validity of the call.
• Never open or respond to unsolicited emails, even if they claim to be from a trusted source. Banks, credit card companies and the VA will never ask for your personal information via email.
• Only do business with trusted sources.

Don’t think you’re at risk? Think again.

Have you ever handed your card over to a waitress, store clerk or hotel staff member when making a credit card purchase? If you answered yes, then you are at risk of being a victim of credit card “skimming.”

A skimmer is a small, hand held device (often as small as a pager!) which enables a thief to immediately obtain your credit card information in just seconds.  The scenario usually plays out like this: the employee takes your card and leaves to run your credit card for your purchase. With just an extra swipe of your card into the skimmer, the thief now has your name and credit card information.

The thief then usually downloads this information onto a computer and uses it for a variety of fraudulent activities. Many thieves are able to duplicate counterfeit cards and then distribute them for use worldwide.

This problem is huge and getting bigger by the day. In fact, it is estimated that skimming costs consumers more than $1 billion each year.

There are a few things you can do prevent a skimmer from damaging your credit:

• Never let a clerk, waitress or other type of employee walk away with your credit card. Pay cash at restaurants and other venues where your credit card must leave your site.
• Keep a close eye on your credit card bill so that you can catch fraudulent activity before it gets out of hand and ruins your credit score.
• Immediately contact the credit card company in question if you notice any unauthorized charges on your credit card.
• Immediately contact the three, major credit reporting agencies – Equifax, Experian and TransUnion – if you suspect any fraudulent activity and ask them to put a fraud alert on your credit report.

It is important to remember that, as a consumer, you must remain on high alert when it comes to your credit. Stay informed, read your credit card statements carefully, and immediately contact the appropriate sources if you suspect any kind of fraudulent activity on your credit card.

Many consumers have fallen victim to credit card fraud through fraudulent websites and thieves looking for an easy way to obtain credit card information. The sad thruth is that many consumers unknowingly offer up their credit card information to online thieves. This is often done because consumers continue to make purchases off of sites that are either phony or unsecure.

How does this happen, and what can you to reduce the likelihood that you’ll be the next victim of online credit card fraud?

• Never, ever give out your credit card numbers online if the site isn’t secure. And don’t trust that small padlock icon, either, as thieves have found ways to simply duplicate it on unsecure websites. Instead, shop only through trusted sources, and make sure the website address begins with “https” instead of just “http.”
• Always make sure your firewall and virus software on your computer is up-to-date, and don’t make a single purchase online unless you know that you are fully protected.
• Avoid purchasing off any online retailer that has no permanent address or phone number.
• If you are still unsure about the online company in question, contact your local Better Business Bureau.
• Never respond to an unsolicited email from a company offering you a “great” deal.
• Avoid using your debit card for online purchases, as this can put your bank account in jeopardy. Instead, use your credit card to make purchases, as most credit cards have protection plans against unauthorized purchases.
• Contact your credit card company IMMEDIATELY if you suspect fraudulent activity. Contact the three, national credit reporting agencies, as well, and ask them to flag your credit report for any suspicious activity.

It is important to remain educated and diligent when it comes to your private credit card information, as this can mean the difference between convenient, online credit card transactions and a great deal of grief.