by Joseph Kenny | 02/15/08

Financial experts say that consumers should be on their guard against credit card fraud this holiday season.  Otherwise, credit card customers could find that identity theft has become the grinch who stole Christmas.

Recently, one news outlet discovered that activations are not always needed to get a credit card to work.  An investigation by ABC 15 found that a Chase card could be used un-activated at a gas station, an office supplies store, and even in online shopping.  

A Chase customer service representative told ABC 15 that the case was unusual.  However, additional digging by ABC 15 indicated that Bank of America and Washington Mutual cards were equally susceptible to being used before being activated.

If you are forgetful and don't want to have to bother with credit card activation, the situation might not bother you.  However, if you are concerned about identity theft, the state of affairs could be quite alarming.  A thief could easily steal your new credit card and amass thousands of dollars in charges before the card can even be activated.

Consumer groups are expressing alarm at the practice of sending out credit cards that do not require activation.  A mix-up in mail delivery could easily lead to a non-activated credit card landing in the wrong hands.

However, credit card companies insist they have security procedures in place to prevent credit card fraud from occurring.   In fact, requiring consumers to call to activate their cards may just be a ruse to sell additional credit card protection plans.

To safeguard your credit rating, experts recommend that you limit the number of credit cards you possess.  Keep track of all your credit card spending and keep close tabs on your credit card statements.  If you notice any mysterious charges on your bills, alert your credit card company immediately.