It seems not a day goes by that I don't hear of some new method of identity theft or credit card fraud to guard against. And yesterday was no exception.

I spotted an article about a group of Huntington bank customers whose debit card information had been used to buy several air conditioners at Overstock.com. Huntington was quick to deny fault in the matter, deferring the blame to, "some link on the Internet." Thankfully Overstock.com quickly reimbursed the fraudulent transactions and shed some light on how the theft may have occurred.

Alan Johnson, who heads up the fraud department at Overstock, told our local paper that the numbers were likely compromised by "card tumbling," a method of fraud that seems fit for an upcoming episode of Numb3rs. Since I can't call in Charlie Eppes to explain card tumbling, I'll do my best to break it down for you.

Much in the same way that a locksmith focuses on how a lock works in order to pick it, card tumblers focus on the rules and math that govern how credit card numbers are created in order to get to your money. Once they create a credit card number, they test it for validity and if successful it's used on sites that don't verify other information such as the name or security code on the credit card.

Perhaps what is most frightening about this method of theft is that you don't have to use your card online or have the number stolen to lose out. Even though the normal methods of safeguarding your credit and debit card numbers won't protect you from this method of hacking, there is one step you can take to keep your funds safe. To avoid the realization that someone in Nigeria has emptied your entire account, you can have your debit card attached to a secondary account in which you only keep money you are going to spend in the near future.

Nobody sets out to rack up credit card debt, but once you stop paying off your balance every month it becomes easier and easier to pay less and less. Before you know it, you're paying $20 bucks over the minimum, vowing (unsuccessfully) each month to stop charging anything else to the card. All too soon, you've accumulated a couple grand in credit card debt, and while you console yourself with the fact that this is about the average for Americans who carry a balance on their cards, the sad reality is that credit card debt is a cherry on top of the debt sundae holding you back from getting on with life.

Even if you've managed to reign in charging your lifestyle, as long as you carry revolving debt on your credit card, every dollar you spend on a cash purchase instead using ti to pay down your balance prolongs your agony. I charged the haircut I got this morning, the $3.79 I spent at Taco Bell ,and every video game I own! I may as well pay off a chunk of my debt and then charge these purchases to the credit card. At least then I'd save some money on the interest charges.

Don't miss the rest of our series on 15 Ways to Ruin Your Financial Future!

When it comes down to it, it's important to remember that just because I blog on personal finance doesn't mean I make all the right decisions when it comes to crunch time. Of all of the financial decisions I have made, this lingering credit card debt is the most bothersome. In my case, the debt has added to the reasons we haven't purchased a house. For a few close friends, credit card debt has led to delayed car purchases and relationship strife.

If you haven't racked up credit card debt yet, take this warning to heart and pay off your balance every month. If you've slipped like me and accrued a balance, then there are a few steps you can take to start making a better financial future. The first thing I did was to stop buying so much stuff. I still have my vices, but I don't spend as much on them now. The next thing I did was to transfer the balance to another card with a 0% offer for a year and a cap on the balance transfer fees. The final step is to start making regular payments way above the minimum in order to knock the debt out. If you don't have the extra money, I'd suggest you start looking for a second or third job!

It started small last month, if you consider stranding 900 people on the wrong end of the planet "small." That's when the airline Zoom, which made regular transatlantic runs to North America, zonked out unexpectedly.

The sudden death of airlines creates a ripple effect. Last week, another 2,500 English travelers were left high and dry in the Mediterranean when Seguro, a vacation packager, raised the white flag. You see, the Spanish flyer Futura suddenly folded, leaving the vacation packager that used its flights holding the bag.

The next day, Britain's third-largest vacation seller, XL, gave up the ghost, halting its self-run flights and stranding an astounding 85,000 people abroad. That's a lot of sunburned Brits pounding the counters at tropical airports. Some 10,000 of them, who booked their flights without packages, were not covered by the bond and had to pay more money to get back home. Another 200,000 people with advance reservations were also wondering where their down payments had gone.

Many of the victims of these collapses thought they were covered because they used their credit cards to buy their trips. That's just not the case.

As consumers, we should stand up for our rights. If we don't, companies can easily walk all over us and cost us money. However, standing up for your rights should have its limits, especially when dealing with credit card companies.

I saw this question from a consumer who made a mistake with a payment on her credit card. She ended up being charged a $29 late fee. She paid her full balance and asked the credit card company to remove the late fee. They refused, so closed the account without paying the fee. Now she finds herself with fees upon fees for not paying the original late fee, and she has a negative mark on her credit report.

When a credit card company charges interest or fees that you feel are unfair, it never hurts to ask them to remove the charges. Plead your case politely, and sometimes you'll win. But in the cases in which you don't win, you shouldn't make the mistake of trying to play "hardball" with the credit card company.

Many consumers are aware that their credit history can have a big impact on their lives, and the effects reach beyond the home mortgage, the auto loan, and the credit card. Credit scores have long been used by insurance companies in determining the premiums you pay. Hospitals are starting to look at credit histories before providing some types of care.

And now the credit scoring mystery gets a little stranger. The FTC is suing CompuCredit, company that provides credit cards to people with poor credit. The FTC is alleging that the company uses unfair practices in its proprietary system of credit scoring for its customers.

For CompuCredit, it doesn't just matter how long you've had an account, whether you've made your payments on time, or whether you've exceeded your credit limit. They also include factors in their scoring system based on what you're buying with your credit card. And they're cutting off customers who use their credit cards at massage parlors, bars, billiard halls, and marriage counselors.

Today in the mail, I received a new credit card from Discover. But the question is why. I didn't open a new account. My card hadn't expired. I didn't get a new account number. I hadn't lost the card. I didn't request a second card.

There was no documentation with the card other than the standard "here's your card" notice and the sticker on the front of the card saying it must be activated by calling from your home phone. Except I already have a card with the exact same numbers on the front and the back that's already activated. No activation needed for this card I received today... the card number is already up and running.

Each time a credit card company sends out a credit card, isn't there a certain amount of risk that goes along with it? The envelope could get lost and the card could end up in the wrong hands. The card could be stolen by someone who's a part of the mailing process. At the very least, someone could get the numbers off the card and try to use them online.

Consumers have rights when it comes to fraudulent credit card charges or charges for products and services that aren't what they paid for. The key to successfully challenging a charge is in knowing what to say and who to tell. That sounds elementary, right? Except Consumer Reports is saying that many consumers don't know their rights or how to enforce them.

Small dollar amounts are easy to dispute and resolve, as it's estimated that it costs a credit card company $25 for each charge it must investigate. This means they're likely to give refunds for small amounts without much work. It would cost more to investigate than to just give you your money. The credit card company also has to weigh the risk that you will close your account if your matter isn't resolved. They lose money when you do that.

Here are a few key points about your credit card: Report suspicions of credit card immediately to stop the harm. Most billing problems need to be disputed in writing, and many credit card companies don't recognize e-mail as "in writing." The credit card company must receive your letter within 60 days from the statement date, so don't wait. Include with your letter all copies of supporting documentation to help prove your claim.

One key to getting your credit card company, bank, or other creditor to work with you when your financial situation is precarious is by making sure they're listening. Make no mistake, credit card companies want your business. Heck, they want business so badly, they're willing to give a credit card to just about any adult with a pulse. But of course, they want to be paid back.

So if you're trying to negotiate with a lender, the first step is to make sure they know that you want to pay them back. (Don't make silly references to bankruptcy and such. That's just a threat and doesn't get you anywhere.) If you're asking for a break on your interest rate or some extra time to pay, make it clear that you plan to pay everything you owe, but you need some temporary help. And once the credit card company or bank gives you that help, make good on your promises and pay as agreed.

Here's an example of how not to get your lender to negotiate. Be obnoxious, annoying, and belligerent. Believe me, the old adage of attracting more flies with honey is true. Be nice to the customer service representative and give her or him a reason to want to help you.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Most credit cards with variable rates have their rates tied to the prime interest rate. That rate has been going down, but consumers are still seeing their credit card interest rates rising. How can that be?

For consumers with good credit, their credit card rates will usually fall as the prime interest rate falls. But those consumers whose credit is suffering will not see the same benefit. Particularly if they are behind on their debts or doing other things that negatively impact their credit scores, they will likely see an increase in credit card rates.

So if you've got a credit score of 700 or above, expect to see your interest rates on your credit cards go down. If your score is lower or you've been experiencing debt troubles, watch your rates carefully. They're likely to be on the rise, which could put you even deeper into trouble. You typically have the right to refuse the rate increase, but you'll have to pay off the account and close it. Play the credit card game wisely.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Have you heard of the "smart card"? It's a credit card that's enabled with a "smart chip" which utilizes RFID technology to transmit your credit card information to a checkout terminal. The cards are supposed to save time and improve security.

It sounds cool, doesn't it? It is... except it now means that someone can steal your credit card information without ever even touching that card. If they get close enough to you with a device created to steal the information transmitted by the smart chip, your identity and information can be compromised.

Credit card companies say that their cards with the chips are secure and consumers shouldn't be worried. I'm not so sure, and I think I'll take a pass on the chip-enabled cards for now. I really don't need identity thieves to have one more way to steal my credit.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Nancy Trejos, a personal finance columnist for the Washington Post had her identity stolen and her debit card and bank account compromised. She was lucky. Her bank called her while someone was trying to buy over $800 of merchandise with her debit card number.

The writer found herself in an unusual position. She had given up her credit card in favor of a debit card, hoping to become debt-free by avoiding credit cards. Trejos used her debit card a lot, and each time she used it, she was putting her bank account at risk. Each time we use our credit card, we're putting our accounts at risk as well. It's just the nature of the beast. Use a card, and the number is exposed to someone.

Trejos quickly found out that the thief had more than just her debit card number. She also had lots of personal information and the security code from the back of the debit card. How did that happen?

While she pondered her situation, she set herself up with a "fraud alert" at one of the credit bureaus, filed a complaint with the FTC, and reported the situation to the police. It would now be harder for Trejos to get credit, as each credit issuer would have to verify her identity before approving a new account, but it's a hassle worth dealing with if your identity has been compromised.

Last week at The Consumerist, a Chase customer service representative gave some insight into his job and how the bank views customers. I found out that I'm a bad customer for Chase, and I like it that way. Here's why I'm a bad customer....

Apparently only about 5% of credit card customers are considered the "best." You get to be a best customer if you borrow lots of money from the bank for homes and cars, or if you have a high credit card balance and you're paying them a lot of interest.

You get to be a "valuable" customer of Chase if you pay your credit card bill on time. Basically, you cause the bank no trouble, so they don't mind keeping you. But you do have to still pay the bank some sort of interest charges.

And then there are the "non-profit" customers of Chase. They pay their bill in full every month, so no interest charges are generated. A small fee is earned by the bank each time you use your credit card, but the vast majority of the transaction fees are kept by Visa and Mastercard, so essentially Chase makes no money on your account. The non-profit customer always pays the bill on time, so there's never a late fee and they don't go over their credit limit, so no fees there either.

We've talked a lot at WalletPop about the exorbitant fees charged by credit cards, and the restrictive and confusing agreements that come with your credit cards. Well it seems that the credit card companies are taking it even further by becoming more aggressive with interest rate hikes.

More people defaulting on their accounts means the banks have to make up that money somehow, and they've decided to do it with higher penalty interest rates. A penalty interest rate is generally charged when you are in some sort of default under your credit card agreement, most often by paying late.

Credit card companies are hiking rates as high as 30%, even if you only pay one day late. Consumer advocates say this is unfair and should be illegal. Others say that people should either carefully follow the terms of their credit card agreements (pay on time) or face the consequences.