The best way to avoid credit card fraud is to use common sense, always verify with whom you are doing business. This is especially important if you do business over the internet.
Whenever you receive a credit card payment always ask for the security code that is located on the back of the card. If you have any doubt about the trustworthiness of the purchaser, do the following safety checks: ask for the billing address of the credit card, ask to see the purchaser's driver's license, and call your credit card merchant services. They can determine if the card has been reported stolen or lost.