Credit card fraud According to reported the most frequent fraud in 2020 Federal trade commission. Total Loss Due to Credit Card Fraud? A strong $ 149 million.
However it is important to know what action you will take if you are one. Credit Card Fraud Victim, Practicing credit card security from the moment you obtain a new credit card can go a long way towards the prevention of credit card fraud.
Let’s have a look what you will learn next:
Both are similar, but identity theft is widespread in reach. A thief who steals your identity can use your personal information, such as your social security number, to open a new credit card account, get a loan or even file a tax in your name.
Credit card fraud is an identity theft that occurs when your account is used for unauthorized purchases. For example, when you check your credit card account online, you can see that there is a purchase that you did not make. Although many major card issuers offer zero liability on fraudulent purchases, it is your responsibility to look forward to fraud and report suspicious transactions as soon as possible.
There is no foolproof strategy that protects you from total credit card fraud, but since some everyday actions can increase your fraud risk, it is worth your time to learn to practice credit card protection.
There are many ways that scammers try to fool you or steal your information. Fraud reports for 2020 have increased compared to the previous year, which is not surprising. During a crisis, fraud increases. The culprit is hoping to catch you in a weak moment.
Sometimes, just being aware of this can help you make better decisions and prevent credit card fraud. Let’s take a look at some simple ways to prevent fraud:
Let’s start with something basic that is really easy to do. If the site is secure, you will see a padlock on the left side of the address bar at the top of your browser.
In addition, the web address will start with HTTPS. Do not put your credit card number on a non-secure website. And let’s be honest, if a business is not offering data protection for its customers, then it is not worth your business.
These scams can be by phone, email, text or even snail mail. The purpose is to hand over your financial information to you. A scammer can call you and pretend that they are from an organization that you trust, such as a bank or social security administration.
I recently received a call from SSA and was told that I needed to confirm my social security number in order to get a social security check. First of all, I do not get social security checks. But since I knew it was a normal scam, I was suspicious from the beginning. Caller ID showed that the call was from SSA.
Today’s scams are technically sophisticated. You may receive an email that appears to be your bank’s logo, and you may consider it valid. If the email replies with your credit card account number, then you know it is fake.
A government or financial institution will never ask you to give sensitive information. One way to spot these scams is if you see typos in communication. Thieves can be clever, but they often cannot spell correctly.
Credit card thieves often use a device called a skimmer to steal your credit card information. They try to hide these devices at ATMs and fuel pumps and “skim” the data from the magnetic stripe on the back of your credit card.
Whenever you pay for gas at the pump or use an ATM, see signs of tampering. If you are unsure at all, pay your gas inside the store. If it is an ATM that changes, find another ATM that is associated with your bank. And, of course, if you are not in an ATM then use your EMV chip credit card. Not only do credit card issuers usually charge a higher interest rate on cash advances, but they usually start charging interest immediately without any concession period.
If you feel that it is needless to say, spend a few hours on any social media platform. And if you have older children online, give them a serious talk about this. Thieves find out through social media that they can get together about your life and your financial data. Tip: Do not use your pet’s name for a password.
Your credit card information is less likely to be found on an in-store card reader, but the threat still exists. Increase your credit card fraud protection by using mobile payment apps, such as Apple Pay, Samsung Pay, or PayPal.
These apps use a technology called Token, which allows you to make payments without revealing your actual credit card account number. So even if the information about your transaction falls into the wrong hands, your actual account number will be safe.
Using an EMV chip card provides some protection as it is not easy to clone these cards. There are still retailers who only have magnetic-stripe cards. But if possible, try to limit your shopping to stores that accept chip cards.
As I mentioned with skimmers, chip cards have an extra layer of fraud protection. However, keep in mind that when you shop online, additional security is not present. This is called card-not-present fraud because you are giving your credit card account number to the site but you are not using chip technology. Online you do not have the benefit of chip-enabled security that occurs when you use your card in person.
I know this is a hard rule to follow because it takes time. You have to stop, find your credit card and type in the account number. Even a data breach can happen to retailers you trust, so storing your account information on a website is not good. But if you can handle typing in your card account number every time, it is an effective way to reduce your fraud risk.
This feature is not offered by many issuers, but if your issuer does, take advantage of virtual numbers. Here’s how it works: Through your issuer’s tool, you can request a virtual credit card number to use online. You will get a unique virtual account number for making purchases instead of your actual credit card number.
Since your chip credit card does not give you extra security online, virtual credit card numbers help promote protection from credit card fraud. If the retailer is violated, your actual credit card number is protected.
One of the rules with using passwords is that you should avoid using the same password on multiple sites. If a thief grabs one of your passwords, ask for your credit card account, the thief will try that password on your checking account.
See problem? And yes, tracking all your complex passwords is a pain, certainly. Therefore you should use the password manager. Some are the best Password manager, Such as BitWorden and LastPass, which come with free or advanced paid accounts.
Most credit cards in Europe come with a Chip and pin feature, But some card issuers in the US have followed suit. Without a PIN, you will not only have a difficult time using automated kiosks abroad, but you may also be exposed to potential fraud.
If you disclose your credit card number or bank account over public Wi-Fi, you will be vulnerable to hackers as these networks are often unencrypted. Thieves can be seen hiding in public areas, so that they can catch a guard and steal their information. Whatever financial steps you need to take, wait until you are on a secure network.
But this does not mean that you have to avoid public Wi-Fi altogether. You can use a virtual private network or VPN to protect your private information from a clever eavesdropper.
As soon as you realize that your credit card is gone, immediately report it to your credit card issuer so that it can freeze your account.
If you are not sure how long your card has been missing, the safest thing is to get a fraud alert or a Credit freeze. With a fraud alert, when a thief tries to open an account, the creditor will usually call you to verify your identity and confirm that you applied. With a credit freeze, creditors cannot even access your credit report, making it impossible for them to approve a credit application by an improvised applicant.
You a Free annual credit report Each of the three major credit bureaus every 12 months: Equifax, Experian and TransUnion. You need to review your report at least annually to ensure this.
For starters, you want to make sure that all the data in your report is accurate. If there is a major error, it is likely that it will negatively impact your credit score. You also want to make sure that you do not see new accounts that you did not open. If you do, it is a sign of credit card fraud and possible identity theft. You have to take steps Report fraud as soon as possible.
It is true that you can be diligent about credit card fraud prevention and still be a victim of fraud. But you can do everything to fail it, you have reduced your risk significantly.
Your final step for credit card prevention: Check your online financial accounts several times a week. Look for fraudulent purchase signs and report them immediately. If you find fraud early, you will go a long way towards reducing financial and emotional damage.