Reports that millions of credit card numbers may have been compromised recently are a timely reminder that consumers need to stay on top of their credit card accounts,  Better Business Bureau of Southern Arizona advises.

“Most of us depend on being able to use credit cards for everyday purchases,” said Kim States, BBB President. “When identity thieves strike, we may feel powerless, but there are steps we all can take to safeguard our accounts.”

Normally, credit card issuers will notify customers if their accounts have been compromised. The issuer may send you a new card and freeze the old account. Some companies will offer fraud monitoring services for a limited period of time. If they do, find out whether the service will result in a charge to your account and how you can cancel the service it you don’t want to keep paying for it.

Although most credit card companies don’t charge cardholders for fraudulent charges on their accounts, customers need to check their accounts for potential fraud not detected by a card issuer’s computers. You should look at transactions on the account regularly to make sure you actually made the purchases listed. Report any discrepancies immediately.

Most card issuers allow cardholders to check their accounts online. Some ID theft experts recommend that consumers switch to electronic delivery of credit card statements, especially if your mailbox isn’t secure. This prevents thieves from stealing your mail to commit ID theft. If you get mailed statements, go over them regularly to determine that all the charges are legitimate.

Another important step is checking your credit report on a regular basis. If you see accounts there that you didn’t open, contact the issuer to report potential fraud. You may want to consider getting a “credit freeze” that will prevent the opening of new accounts.

Many advertisements on television or online claim to offer “free credit reports,” “free credit scores” or “free credit monitoring.” Often, the service is free only if you sign up for another service that isn’t free. In some cases, the advertisers may be attempting to steal your identity or sign you up for something that results in a monthly fee charged to a credit card. Beware of links in unsolicited emails that ask for personal information or account numbers.

The only way to get a truly free copy of a credit report is by using a service sponsored by the three nationwide credit reporting agencies – Experian, Equifax and Transunion. The service is available at AnnualCreditReport.com or by calling 1-877-322-8228. Consumers also may go to the website and download a request form that can be mailed to an address in Atlanta. Mailed reports normally arrive within two or three weeks.

Other tips that can help safeguard your accounts

• Review receipts at stores before you sign them. Make sure the amounts jive with what you are purchasing.
• Keep copies of ATM and sales receipts for your records and compare them with your monthly statements. Call the credit card company if you find a discrepancy. If fraud is involved, consider filing a police report.
• Be aware of your surroundings when using your card. Could someone be looking over your (more…)

Consumers with newly acquired tax refund checks might notice numerous offers and incentives to spend cash right away; Better Business Bureau says to save funds for further review.

According to the Internal Revenue Service, the average 2012 tax refund is roughly $3,000.

BBB warns refund recipients and big spenders to be wary of:

1. Check-cashing businesses that offer special discounts for cashing refunds.
2. “Bring in your tax refund” incentives for deposits or guaranteed credit approval.
3. Conveniently-timed “buy now” advertisements on high-end merchandise, luxury items and other expensive services, such as: furniture; electronics; cars; clothing; jewelry; cosmetic services; and vacations.

“Advertised deals could be exaggerated or misleading. In worst case scenarios, buyers end up in financial hot-water with no recourse for voiding contracts or returning purchases they can’t afford,” says Kim States, BBB President. “In other cases, tax refund checks are lower than anticipated, but consumers have already committed to certain deals or savings plans before knowing exactly how much money they’ll receive.”

After taxes, BBB offers eight smart spending and savings reminders:

• Budget. Wait until returns are received to evaluate how assets will be allocated.
• Spend wisely. Compare deals, review purchase policies and thoroughly research companies before buying.
• Acknowledge asterisks in ads. Make sure to read contracts and fine print carefully. Get verbal promises in writing.
• Track accounts. Make sure deposited checks are applied to accounts. Use credit cards on more expensive merchandise; monitor account activity and contest unauthorized post-transactional charges.
• Dodge debts. Consider using refund cash to cover bills, loans or student expenses.
• Save for safety. Contemplate allocating a portion of the funds in a separate account for unexpected emergency costs.
• Protect purchases. During Financial Literacy Month and year-round, utilize free financial tips and anti-fraud resources at mymoney.gov, consumerfinance.gov,  ftc.gov/moneymatters and saveandinvest.org.
• Capitalize on good credit. Seek free guidance from BBB’s Managing Credit – Made Simpler at bbb.org/credit-management or find articles at www.tucson.bbb.org.

Better Business Bureau of Southern Arizona will be hosting its 2012 Torch Awards luncheon on April 26, from 11:30 a.m. to 1:00 p.m., at the Starr Pass Resort in Tucson. A limited number of tickets are available to the public; to reserve yours please call (520)888-6161.

Finalists for this year’s awards were selected by two panels of judges independent of BBB, representing both non-profit and for-profit organizations in Southern Arizona.

This year BBB is honoring a total of nine companies in three award categories:

Ethics Award: Honors a business for its trustworthy and honorable business practices in four primary categories. The nominated business maintains a solid commitment to ethical business practices in every aspect of its operation. This award is open to any for-profit company in southern Arizona that is in good standing with BBB. Finalists for the award are:

• Empire Today
• REALM Environments
• McCaleb Construction

Good Neighbor Award: Recognizes a company that has shown a commitment to making southern Arizona a better place through community service. The nominated business and employees play a significant role in support of local charities or community service projects. This award is open to any for-profit business in Southern Arizona that is in good standing with BBB. Finalists for the award are:

• AGM Container Controls
• Snell & Wilmer, LLP
• Golden Eagle Distributors

Customer Excellence Award: The nominated business has an outstanding customer service program and a history of exceeding customers’ expectations. This award is open only to BBB Accredited Businesses in southern Arizona. Finalists for the award are:

• Bill’s Home Service
• Rite-Way Ventilating Company
• Temperature-Control, Inc.

Winners and two finalists in each category will be named at the awards luncheon on April 26. Visit www.tucson.bbb.org/torchawards for more information. Reservations must be received by April 20.