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Tips to Help You Deal With Credit Card Fraud

— June 22, 2022

Chip cards have an added layer of fraud prevention. Remember, when you shop online, your purchases do not come with the added protection.

Following the Federal Trade Commission, credit card fraud is the most common type. They estimate that the overall loss is about 150 million dollars annually. Knowing what to do when you are a victim of credit card fraud theft is key. You must practice credit card safety from the time you obtain a new card, making this an essential step to prevent fraud. Use these tips to help keep your information safe.

What is Credit Card Fraud

Someone else using your credit card for fraudulent purchases is considered credit card fraud. For example, when looking at your card account online, you may find transactions that are not yours. Even though card issuers such as an American express credit card typically do not hold you responsible for these purchases, you still need to be vigilant and look out for suspicious activity.

There is no approach to prevent credit card fraud entirely, but everyday acts could increase your fraud risk. Practicing credit card safety is worth it in the long run.

How can You Prevent Credit Card Fraud

Scammers have various methods to steal your information. There are numerous reports of fraud, increasing every year. Scammers who attempt to get your information look for the opportunity to catch you in a weak spot. However, knowing what to look for helps with your decision-making skills. These are a few ways you can avoid fraudulent activity:

  • Do not access any websites that are not secure.
  • Do not post your personal information on any social media.
  • Do not save your card information online.
  • Do not use public wifi for online transactions.
  • Do review your credit card statements frequently.

These are simple but powerful steps that keep your information secure. However, if you are an online company and want to improve your customer experience or cx, make sure you protect your customer’s private information at all costs.

What are Phishing Scams

This scam is delivered by email, text or phone, trying to get your financial details. The scam artist might call you and claim to be from a trusted institution, such as the Social Security Administration or even your bank.

Scams today steadily become more sophisticated. For example, you might receive an email looking eerily similar to your bank’s logo, making you believe that it is genuine. One way to tell the email is a scam is if it asks for any personal information, such as your debit card number. Fundamental institutions will never request you give them your sensitive information.

Why Shop in Store with Chip Readers

Because cloning cards with a chip is more complex, having one provides you with more protection. However, some retailers still use magnetic strips. Limit your purchases at these stores when possible.

Chip cards have an added layer of fraud prevention. Remember, when you shop online, your purchases do not come with the added protection, referred to as card-not-present. Card-not-present fraud happens when you provide the site with your card number, but you do not use chip technology.

How to set up Fraud Alert and Credit Freeze

Laptop and credit cards on red shag carpet; image by Dylan Gillis, via
Laptop and credit cards on red shag carpet; image by Dylan Gillis, via

When you realize your credit card is missing, immediately notify your credit card issuer so they can freeze your card. With that said, using a fraud alert or a credit freeze when you do not know how long your card has been missing. When someone tries to open an account with a fraud alert, the creditor will call and confirm your identity to ensure you applied. But, a credit freeze prevents creditors from seeing your reports, making it challenging to approve a fraudulent application.

When to Make Credit Card Safety a Habit

One last step to aid in the security process, check your online accounts multiple times a week. Keep an eye out for purchases you did not make. Finding fraud early makes it easier to deal with in the long run.

Making sure your information is secure is one of the most important things. Keeping track of your information does not have to be complicated. Instead, follow these few steps to stay on top of your private details and stop fraud before it starts.

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