With a growing number of people opting to shop online and through the telephone, cases of credit card fraud are rapidly on the rise. Hundreds of illegal marketers and scam artists reap credit card and financial information which harshly affect both the card user and the retailer.

Being charged thousands of dollars from purchases you never made can dent a large chunk of your life savings and damage the good credit history you have built for a long time. As a cardholder, it is your responsibility to keep your card information safe so here are some tips to avoid making yourself a credit card fraud victim.

• As soon as you get your card, make sure that you sign the back of it. This makes it harder for fraudsters to use it.

• Memorize your pin. If you can't, jot it down and keep it in a safe place.

• Keep a watchful eye on your card every time you use it. Credit card information can easily be written down by a shop attendant or your waiter. Better be safe and be on the watch.

• Avoid giving your credit card information over the phone unless you are very sure that you are speaking to a trustworthy and legitimate merchant. Some people may also call you claiming to be your bank representative—do not give your card information immediately. Your bank will never call you and ask you for this information.

• Check your bank statements regularly and make sure that there is no unusual activity. If there are, call your bank immediately and inform them about these bogus charges.

• Keep the receipts of your purchases. This way it will be easier for you to keep track of what you did or did not purchase.

• Avoid responding to emails that ask you for your credit card information. You may also get an email coming from your supposed bank to ask for your card information and password. Never give it out as your bank already has this information in their database and will never send an e-mail and ask you supply it to them.

• Shop only in trusted and secure websites. Don't just give your card information to any online retailer. If you are a frequent online shopper, consider applying for a credit card solely for that purpose. Easily keep track of purchases by using only one card for purchases over the internet.

• Don't just throw away old bank statements and pre-approval letters. Some people go as far as scavenging for old pre-approved letters and easily open up an account under your name. Instead, burn these letters and old unneeded bank statements to effectively prevent anyone from finding them.

• If available, choose a card which has your photo and signature on it. This is a great way to discourage fraudulent usage when lost or stolen.

• Upon discovery of lost or stolen credit cards, take advantage of the company's 24-hour calling hotline and immediately report it to them to disallow card usage as soon as possible.