Credit cards often fall into the hands of thieves who use them to obtain goods and services from merchants. Thieves may steal cards for owners who lose them, leave them in motor vehicles, and in unattended clothing and handbags. Credit cards may also be stolen from within the postal system and from cardholders' mail boxes. To reduce the incidence of credit card fraud, the card issuer should ensure that controls are used to (1) prevent the theft of credit cards, (2) prevent the use of stolen credit cards at the point of sale, (3) determine as soon as possible that credit card fraud has occurred, (4) initiate action immediately to prevent further fraudulent usage, and (5) immediately initiate an investigation of the fraud and prosecution of apprehended offenders. Credit-card theft should be prevented during manufacture and processing, while the cards are in transit to the cardholder, and after cards have been received by the cardholder. An important preventive step is the training of retail sales staff in the use of proper procedures for handling credit card transactions. Sales clerks should also be trained to note suspicious activity by customers using credit cards. In the development of procedures for fraud detection, a system of exception reporting should identify and publish details of lost or stolen cards which have been used fraudulently as well as cards which have been used excessively. A firm prosecution policy should be established, publicized, and pursued by card issuers.