Avoiding Credit Card Fraud

"All you need is the money and they will sell it to you," Smith says. "You can get that information in two minutes."

How to Protect Yourself

Easy as it is to fall victim to credit card fraud, consumers can protect themselves in a number of ways, experts said. They said you should:

Never throw away any personal data, including credit card statements and offers for new credit cards, without completely destroying it or shredding the information.

Check your credit history once or twice a year at one of the three credit reporting agencies — TransUnion, Experian and Equifax — to see that nothing is amiss. This is particularly important because it can take months to sort out problems on your credit report once fraud happens. Experts recommend signing up for a fraud alert service, offered by the credit agencies, that will tell you if a new account has been opened, or will notify you about any changes to your credit file.

Never let your credit card out of your sight for too long when paying.

Never give out your credit card account or other personal information to people posing as bank representatives over the phone if you have not contacted them first. Call the bank yourself.

Never give out your credit card account information to anyone posing as your bank online, and never click on links to new sites that someone posing as your bank may send you in an unsolicited e-mail. Banks will never ask you for your full Social Security number or account number if you have an established relationship with them, experts said. Call your bank and inquire if changes need to be made; similarly, type in your bank's URL yourself. "The difference in the [fraudulent] URL could be off by one character, which you would never notice," said Jim Van Dyke, founder and principal analyst for financial services research firm Javelin Strategy & Research, based in Pleasanton, Calif.

Turn off paper statements wherever possible and use electronic statements.