Credit cards are so useful and enable us to make purchases without having to carry a lot of cash or even have the many at that moment in our banks. With these benefits, however, comes the major issue of credit card fraud. This problem has now become the single most common type of identity theft across the globe. The population of the US alone has more than 1.5 billion credit cards and there are millions of cases of credit card theft every year. To help prevent this epidemic from getting any bigger, it is so important that both individuals and businesses understand how credit card fraud works and how to stop it.
This is a guide to what you should know about credit card fraud and how to defend yourself against it.
What Is Credit Card Fraud?
‘Credit card fraud’ is a blanket term that covers a wide range of crimes usually linked to identity theft. There are various ways in which credit card fraud is committed in practice but they can all have major consequences for the victim. Loss of money, bad credit rating, and emotional trauma are all problems that victims can face and so it is vital that anyone who is suffering as a result of credit card fraud seeks legal help. There are various specialized attorneys who deal with credit card fraud cases and you can visit this website to see one option available to you. An attorney will help to get the money back from the credit card company or an affiliated insurance provider and ensure that the guilty person is held accountable.
What Are Some Common Types of Credit Card Fraud?
Stolen or Lost Credit Cards
Criminals often get credit cards by stealing them from someone’s bag or wallet. While they may not be able to use this card to purchase things in a store without a PIN, they can use the card to make online purchases that don’t require a PIN number. In previous years, many criminals were stealing credit cards out of people’s mail, but how many credit card providers send them in unmarked envelopes so that they can’t be easily identified.
Counterfeit Cards
There are various ways to create a counterfeit card but one of the most effective is to use a machine called a skimmer. This can copy a legitimate card’s magnetic strip information which can then be transferred into a second card. The most sophisticated scammers are able to create such high-quality copies that they can’t be detected by ATM machines or card readers. Skimmers are often attached to ATM machines that copy your card after you insert it and then provide the criminal with all the information they need to produce a counterfeit.
Fraudulent Card Application
Another way for criminals to get a card that is registered to someone else is to apply for a new one with their victim’s information. This is done by obtaining a victim’s name, address, date of birth, and other personal details, as well as stealing a passport or other official document for identity verification.
How Can You Defend Yourself from Credit Card Fraud?
The best way to defend yourself from credit card fraud is by taking steps to recognize the risks and protect your identity, so make sure that you keep your physical cards safe and that you don’t store your card details online. Many websites will ask you if you want to save your details for later use, and while this may be more convenient, it is also riskier.
Always check your monthly card statements to make sure there are no peculiar purchases. If you use your credit card a lot, it can be easy to overlook small transactions, but these are often made by scammers before they make a much bigger purchase. Always keep your personal documents like passport, driving license, and birth certificate in a secure place and always report a loss or theft immediately. Make sure you report a stolen credit card straight away so that they can be canceled and so that you cannot be held responsible for any charges which the criminal racks up.
Becoming the victim of credit card fraud can be very distressing because your theft has also been stolen to facilitate the crime. The most important thing is to report the crime immediately so that you can cancel the card and so that you won’t be responsible for the criminal’s spending. Always keep your cards and personal information safe to stop them from falling into the wrong hands. If you have any problems getting the money back which has been spent, always speak to a specialized attorney as they will be able to assist you.