Credit Card Fraud Facts
Technology has given us the ability to purchase goods and services in a number of ways. Credit cards give you the option to buy things online or over the phone, access cash at ATMs and shop without carrying cash or checks. Credit cards are convenient but not fraud proof. Credit card fraud affects everyone. Companies raise their prices to help offset money lost to credit card fraud. Credit card fraud can happen to anyone at any time.
Other People Are Reading
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Counterfeit Credit Cards
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Counterfeit cards are the most common type of credit card fraud. Criminals use your personal information to create a fake card. Their transactions are billed to your account. Their card will have their name and signature but your account information. A good counterfeit card is hard for a merchant to spot.
Lost or Stolen Credit Cards
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Losing track of your credit card is dangerous. Since there are times when your signature and ID are not checked by merchants, lost and stolen cards can be used to run up your credit card bill.
Once someone has your card they can use it online or over the phone to make purchases. Pay at the pump gas stations and self-checkouts are easy places for someone to use a stolen or lost card without detection. -
No Card Fraud
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Criminals do not need your card to commit fraud. Once they have your card number and account information they can make purchases over the phone or online. Be careful with your personal information. It is always suspicious for someone to call you and ask for personal information. Criminals can get your personal information from statements and documents you throw away.
Non-receipt Fraud
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Non-receipt fraud happens when a new or replacement card is intercepted through the mail. This type of fraud has become less common as card companies have stopped sending active cards in the mail. Once intercepted your card is susceptible to fraud just like a lost or stolen card.
Identity Theft
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Identity theft is more than just credit card fraud. Once a criminal has enough of your personal information they can assume your identity. Identity theft may start with credit card fraud but criminals can use your information to open bank accounts, take out loans, open new credit cards, put your name on cell phone or utility bills and lease agreements. Identity theft is a growing problem and the best defense is prevention.
Prevention/Solution
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Reduce your risk by monitoring your credit card accounts and monthly statements for unusual activity. Report any strange activity immediately. Report a lost or stolen card right away. Cancel any inactive accounts. If you are expecting a new card or replacement card in the mail and it does not arrive in a timely manner, call the issuing company. Sign your cards when you get them. Shred your statements before you throw them away. Make sure the websites you are shopping on have adequate security programs. Keep your anti-virus and anti-spyware programs up to date. Do not give your personal information to anyone over the phone. Your bank will never ask for your Social Security number through email or over the phone. Before you swipe your card, check the card reader for anything out of the ordinary that might indicate the machine has been tampered with.
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