Credit Identity Theft Cards Are Still Safer But

Credit identity theft can be done in either of two ways: through a credit card or a credit line or account. An identity thief may counterfeit your card, or use your account number at a vendor website, or make purchases using your credit line at a store, or use online credit to make fraudulent purchases. These many possibilities are the reasons why ID theft lists through the years still put credit identity theft at the top.

In 2006, 8.9 million American adults fell prey to identity thieves, most being cases of credit identity theft. The average amount involved per victim (all cases) was $6,383. And it took an average time of 40 hours for each victim to fix the problem.

Credit Identity Theft - Top 3 Safeguards

1. Keep your wallet in your bag or purse, not in your pocket. Stealing wallets ranks as a top method by which credit identity theft occurs.

2. Don't let your credit card bill stay late for over 24 hours. All a thief has to do is fill out an address change form at the post office or call your credit company requesting an address change for your statements.

3. Credit identity theft is also most likely to happen when you type in your account number in an unsecured website. Check for a yellow padlock icon at the bottom of your screen. That signifies a secure website. If you don't see it, beware.

Credit Identity Theft - Why Safeguards Are Better Than Not Using a Card

You can use cash, of course, although this comes with its own share of issues and risks. But we can't get away from e-commerce nowadays and for many of us, it really makes more sense to shop and transact business online.

So your options for online shopping would be: using a money order, a checking account, debit account, or online credit account.

But here are the problems: A money order may be bothersome to get and it can get stolen in the mail (mail theft is yet another issue!). A checking or debit account may mean more dire credit identity theft consequences, like having your entire account emptied in seconds! And an online credit account may leave you with a huge debt before any hint of a problem.

That's why your credit card is still the safest way to shop online! The reason for this is Fair Credit Billing Act, a federal law that states you can:
- Dispute your credit card charges
- Withhold any payment while an investigation is ongoing
- Only pay the initial $50 of fraudulent charges once it's proven you were victimized

What's more, it is very rare that a credit identity theft victim will even be asked by the credit card company to pay the $50!