Final answer:
The statement that buying with a credit card can offer security like fraud prevention is true. Credit cards provide consumer protections such as zero-liability policies for unauthorized transactions and the ability to block lost or stolen cards. However, users must protect their information and manage credit wisely to avoid debt issues.
Step-by-step explanation:
Buying with a credit card can indeed offer security like fraud prevention, making the statement true. Credit card companies have measures in place to protect consumers from unauthorized transactions. For instance, if a card is lost or stolen, the cardholder can report it to the issuer, who will then block the card from being used. In addition, many credit cards come with zero-liability policies that protect cardholders from being responsible for fraudulent charges.
It is important to protect your credit and debit cards to minimize the risk of identity theft or fraud. Taking steps like using unique passwords and PINs, safeguarding personal information, and monitoring account activity regularly can help in this regard. If your identity is stolen, thieves could potentially drain savings accounts and accrue large amounts of debt in your name by purchasing expensive items, thus damaging your credit score and financial standing.
It is a good practice to understand both the benefits and risks associated with credit. Remember, using credit means you are going into debt and will need to pay back what you have borrowed, often with interest. Therefore, it's essential to use credit wisely to maintain financial health.