How Credit Card Fraud Occurs
Shopping with the use of a credit card has become increasingly popular with the ability to shop online. Because getting and using a credit card is so easy, credit card fraud is on the rise as of 2010. Credit card fraud occurs when someone obtains a credit card in your name, or uses your credit card or credit card information, pretending to be you. There are different types of credit card fraud and ways for credit card fraud to occur.
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Identity Theft
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Identity theft is one of the most all-encompassing types of fraud. It can affect not only your credit cards but your entire life. Credit card fraud through identity theft occurs when a person has taken over your identity by accessing your social security number, driver's license number and other pertinent information about you. These identity thieves then collect credit cards in your name, and use them. Often they use them to the maximum allowance, costing victims thousands of dollars before the situation can be rectified.
Lost or Stolen Credit Cards
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If you lose your credit card, report it right away. If you don't and someone finds it, that person can use your card in a fraudulent way. Thieves can access your credit card information over the Internet. They change your passwords, delivery address and sometimes use your information to increase credit limits. Once they accomplish this, they will often max out your available credit limits. This type of fraud occurs when you take too long to report a lost or stolen credit card.
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Phishing
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Phishing is a particular type of fraud that occurs over the Internet. On unsecured websites where you enter your credit card information, hackers clone this information, gaining access to your credit card numbers and your personal information. Without the use of firewalls on your computer, you are vulnerable to more opportunities for Internet fraudsters to access your personal credit card information.
Non-Deliverables
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Ordering products from companies that are not legitimate can result in credit card fraud. Often fictitious companies spring up offering products that require you to call 800 numbers and give credit card information. If you order a product using your credit card number and are charged but do not receive your product, you have been a victim of a credit card fraud.
Visa Debit Card
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A Visa debit card acts the same as a credit card in many instances. One of the biggest differences is where credit cards often can take up to seven days to process your transaction, a Visa debit card debits your bank account right away. In the case of a visa debit card, thieves can take money directly from your bank account as soon as they get their hands on the card. Generally this type of fraud happens before you even notice your card is missing. Many retailers do not ask for ID when accepting a Visa debit card.
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References
- Photo Credit credit cards image by Aleksandr Lobanov from Fotolia.com
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all of us should know.
