Not only do we have to deal with the threat of credit card fraud but some people are even losing their identities. This is when someone uses your name and ID number to open new accounts or take over your existing accounts, trading on your good name for their gain and credibility.

Here are some ways you protect yourself from the costs and inconveniences of fraud:

1. Treat your credit cards with the same respect and vigilance as you would treat cash. In addition the rules that apply to carrying large quantities of cash (don’t do it) apply to credit cards, reduce the number of cards you carry for everyday use. Not only will it save you fortunes in interest but you will immediately know if a card goes missing. If you have a wad of cards you may not miss a stolen one for weeks.
2. Keep a list of all of your credit cards so that you can notify creditors quickly in case of theft or loss. Include the account numbers, expiration dates and phone numbers of the issuers. Keep this information separate from your cards.
3. If your card is lost or stolen, report it immediately - credit card companies usually have a hotline and you should make sure you know this number.
4. Most credit-card issuers won't hold you liable for fraudulent charges as long as you report the activity within a particular timeframe. As soon as you suspect fraud, report it to your credit card company.
5. Keep confidential information away from your cards. Don't carry your birth certificate, identification documents, passport or other private information in written form.
6. Destroy copies of receipts that display your credit card number. Criminals can steal credit account numbers in many different ways, such as gathering them from discarded receipts or account statements in people's trash. If a crook also knows the expiry date of your card or your billing address, it's even easier to make a charge.
7. Destroy any "pre-approved" credit card offers you receive in the mail.
8. A criminal could call you claiming to be from a merchant you've just placed an order with and request updated credit card information. Don't tell them anything. Instead, take down their number and verify it before returning the call. Criminals often collect account numbers from telephone or Internet scams.
9. If one of your credit card bills is late, call the card issuer right away. A criminal may have diverted your bill to a different address while continuing to rack up charges on your account.
10. Check your statements carefully each month to make sure all charges are accurate. This is especially important for joint account holders, who may assume certain charges were made by their partner.

Adapted from an article on www.armchairmillionaire.com.