FOR RELEASE ON:  June 29, 1999
FOR MORE INFORMATION: Mary Bonelli/Mitch Wilson: 614-228-1593
After hours:  Mary/614-443-0400; Mitch/614-868-0575

CREDIT CARD THEFT PROTECTION PROVIDED BY INSURANCE, TIPS OFFERED TO PREVENT ILLEGAL USE OF CARDS

COLUMBUS–Consumers have given new meaning to the word "plastic" ever since the first bank credit card was issued in 1952. Between 1990 and the year 2000, the number of credit cards issued by banks and businesses is expected to more than double. That means that the number of credit cards used by consumers is projected to be over 706 million by next year. The Ohio Insurance Institute (OII) reminds consumers that protecting against the illegal use of credit cards is becoming even more important as the use of plastic becomes an every day occurrence.

"The good news is that in recent years, credit card companies have introduced a number of authorization and cross-check measures that have actually resulted in the decline of fraudulent use of credit cards," said OII president Daniel J. Kelso.

Credit card activation requirements, computer programs that flag unusual spending patterns that might indicate use of a stolen card, and additional documentation requirements for duplicate or replacement cards are just some of the ways card issuers are helping to keep a lid on credit card fraud.

According to Visa USA, fraud losses amounted to $490 million or 8 cents for every $100 of charges in 1997, compared to 19 cents during the peak fraud years of 1992 and 1993.

Some credit card issuers limit a card holders liability for fraudulent card use to $50, while some have even waived all financial responsibility. But just in case you need it, homeowners insurance provides coverage for unauthorized use of your credit cards. "Although limits vary depending on your homeowners insurance, most policies automatically provide $1,000 in credit card protection," said Kelso. He advises policyholders to check their insurance policies or contact their insurance agent or company representative for coverage specifics.

The OII also suggests limiting your number of credit cards, and passes along these credit card protection tips:

1. Never leave credit cards unattended at work. More card thefts occur in the workplace than anywhere else.
2. Don't lend your credit cards to others, unless you're willing to pay the consequences.
3. Don't leave your credit cards in your vehicle or in hotel room when traveling. Even if your cards are still there, you never know if your card numbers have been recorded.
4. Always make sure you get your credit card back after using it. Sometimes even the wrong card is mistakenly given back to you in busy business establishments.
5. Keep a list of credit cards, their numbers, expiration dates and issuer phone numbers in a safe place in the event you need to report them stolen.
6. Report a lost or stolen credit card to the issuer immediately. Most unauthorized use of credit cards takes place within a few hours of being lost or stolen.
7. If your wallet is stolen and is later found with the credit cards still in tact, report them as potentially lost or stolen. Just as much damage can be done by having credit card numbers as by having the actual cards in hand.
8. Always check your monthly credit card statements carefully to make sure that unauthorized use did not occur.
9. After using your card, put the receipts in your wallet or purse to avoid misplacing them. Many receipts have your credit card numbers on them which can potentially lead to fraudulent credit card use.
10. If you don't receive a monthly credit card statement, be sure to call your credit card company. Some thieves change billing addresses leaving victims unaware of unlawful use of their cards.
11. When you make a charge, draw lines through the blank spaces on the receipt so the total amount can't be altered.
12. Always sign the back of new credit cards upon receipt, and cut up old credit cards before discarding.
13. Tear up unwanted credit cards or applications you receive in the mail as well as credit card statements before throwing them away.
14. Never provide your credit card number over the phone or internet unless you know the company or business and you are the one initiating the call to place an order. No reputable company will call and ask you for a credit card number.
15. Don't write your PIN number on your credit or debit cards, or keep copies of them with your cards. Your best-bet is to memorize them.
16. Periodically check to make sure none of your cards are missing.

The OII is a trade and public information association representing insurance companies and agent groups for the property/casualty insurance industry. Its primary objective is to help Ohioans achieve a better understanding of insurance and related safety issues.

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