This email has been around since 2004, and I feel it is our responsibility to use caution in perpetuating rumor. Also, there is a federal limit of $50 liability on fraudulent charges made to your cards. The best action is to know and understand your issuing bank's credit card policies and promises concerning your identity and liability.
Take a look at this:
http://www.snopes.com/crime/warnings/cardscams.asp