Credit Card Shaving

The thief randomly tries 16-digit credit card numbers until one works. Then, the thief shaves the numbers from a pre-paid credit card and replaces them with the guessed credit card number. The thief also scratches the magnetic strip on the credit card, forcing store clerks to manually key in the credit card number on the face of the card. Your credit card never leaves your wallet.

Since the theft involves guessing your credit card number, there's not much you can do to keep your credit card number safe. Early detection is key with this type of theft.

Monitor your credit card billing statements closely. Checking your account more frequently than once a month will aid in early detection. You can do this by checking your account online or by phone at least once a week.

Order copies of your credit report at least once a year. You can get a free credit report with no strings attached by visiting www.annualcreditreport.com.

Notify your creditor as quickly as possible after you learn of the fraudulent transactions to prevent future charges.

How to Dispute Credit Card Billing Errors

File a police report. Many credit card companies require a police report before they will remove fraudulent charges from your account.

Check your credit report to make sure the account is correctly reported and that no other accounts have been compromised. As a victim of identity theft, you're entitled to a free credit report (in addition to the one provided under the Fair and Accurate Credit Transactions Act).