Are you at risk for credit card fraud?

Do you know how to keep your credit cards and your credit rating safe? CBS News reports that 57 percent of Americans have been victims of credit card fraud--a frightening statistic that highlights just how easy it is to turn over your credit card information to dishonest strangers. What can you do to keep your credit card safe and protect your finances and credit rating from harm?

Beware the public Wi-Fi connection

Laptop users have the ability to review their checking and savings account information, or make online purchases from anywhere they can get a Wi-Fi signal, but it's not always a smart move. If you're using shared public Wi-Fi, such as the free Internet signal offered at coffee shops and libraries, any information you send or receive is at risk. Public Wi-Fi is never as secure as your own password-protected home or office Internet signal and should never be used for credit card purchases or transmission of any personal or financial information.

Online banking is equally risky. It is just as important, if not more, to protect your checking account as it is to protect your credit card information. Different rules apply to credit card fraud than to theft directly from bank accounts. If a purchase is charged on your credit card, it costs you nothing to wait while the card company investigates and refunds the fraudulent charges, but money stolen from your bank account will usually not be at your disposal until your bank returns it.

Don't risk your credit rating

We've all heard the horror stories about credit card fraud, but what about the impact on your credit rating? While some thieves will use your card immediately for fraudulent purchases and then throw it away, others will store the information--including your social security number--and use it later to obtain new credit cards or loans issued in your name, which can dramatically affect your credit rating and your ability to get a mortgage or start a business.

These concerns illustrate why it's so important to safeguard all of your personal information, and never conduct private transactions over public Wi-Fi. Even PDA and smartphone users are at risk when using public networks to connect to the Internet.

Increase protection

The bottom line? Unless you're transmitting information over a secure wireless signal, your credit card data and other personal details can be intercepted by almost anyone. If there's any doubt about whether a Wi-Fi signal is secure, assume that it isn't and don't access banking information or use a credit card to make online purchases until you find a password-protected signal. When it comes to credit card security, it's always better to be safe than sorry.

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