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Preventing Credit Card Fraud: Procedure and Examples

what is credit card fraud

For many months, we have been communicating on the pages of our blog on the topic of fraud. Our goal is to protect our readers from illegal encroachment on their money by fraudsters. Today we will touch on the topic of card fraud. It is relevant because you probably have a credit card and you regularly use it to pay for purchases. It might surprise you, but a fraud credit card does not always mean that it is your card that is in your wallet that is being used.

You may not even suspect that, for example, a second credit card has been issued in your name, which is used by fraudsters. And when you know about it, it may be too late. Since the money in your bank account will run out or you will be in debt. Let’s take a look at how to define credit card fraud in order to prevent it from happening in the future.

What is credit card fraud and how to prevent it?

In the modern world, your credit history is even more important than your personal biography. Indeed, the first one is the part of the second but it is the credit history that has a great influence on your ability to realize yourself. Fraud credit is the illegal attempt and use of your personal data. After successful identity theft, fraudsters will not only be able to gain access to your money, but also take new loans in your name. And of course, the burden of paying off the debt will fall on you. Fraud on credit cards occurs most frequently online. After all, it is possible to get access to personal information in hundreds of ways that you do not even know about and consider quite safe.

Internet credit card frauds: preventing measures

fraud credit cards

With offline frauds, you most likely have live contact with the fraudster or those around him that can help you get your money back. In the case of online fraud, this is much more difficult, so you need to be careful and attentive to the details that can prevent fraud credit cards.

  • Do not make a purchase if you are not sure if this is the official website of the store.
  • If possible, check the physical address of the store.
  • Do not link a credit card on store websites.
  • Never provide your personal information online. You must remember that even banks do not ask for such information via mail.
  • Use only a strong password and do not have one password for everything.
  • If your social networks have information about your date of birth, first date, pet name, etc., then do not use them as passwords.

Even using this small list of tips, you will protect your personal data from theft, and therefore from fraud.

Examples of credit card frauds

Fraud on a credit card can become not only a material problem but also a moral one. To avoid fraud, it is not enough just to be careful, you also need to know the latest credit card frauds. It will help you define credit card fraud and stop it.

  1. This is not one of the last methods of fraud, but it will never lose its relevance. It is possible only if the material credit card will be forever replaced by a virtual one. If you have lost your credit card or stolen it, then immediately contact the bank to block the card. Small purchases often do not require a password when paying. And in the case of your delay, there may be a lot of such purchases.
  2. You probably linked your credit card to Google Pay to make your online purchases easier. If someone has received your credit card details, they can easily use the money on it. This is called a “card-not-present” fraud. Credit card payment fraud can only be noticed by regularly checking your credit card statement. If you notice such activity, immediately block the card and reissue it.
  3. Phishing is one of the most popular ways of Identity Theft. Fraudsters can contact you by phone or mail and try to find out the information they need. We have repeatedly emphasized that no bank requests such information by phone or mail. Drop the call or ignore the letter, then contact the bank in person or call the official number.
  4. Do you know why you need to carefully examine an ATM before withdrawing money or why you should not give your card to a waiter in a cafe, but insist that he/she comes to you with a terminal? Such actions can prevent card skimming. It is when using a small special device, fraudsters can copy your card details. Do not use ATM machines that look strange and do not overlook your credit card when paying.

The list of fraud methods is growing every day. However, stopping credit card fraud depends only on you. Undoubtedly, you can become paranoid and go crazy if you wait for a scam at every corner, but you should also not be negligent in security measures.

Why is claiming fraud on a credit card important?

card fraud

Recovering your good name is a difficult and time-consuming process, but still possible. However, finding fraudsters and bringing them to justice is even more difficult. Reporting fraud on a credit card is the first step to take in more than just protecting your reputation. Your story can help others. Perhaps you will provide details that will help arrest the fraudster during his next deception. There is no need to be shy and silent. Being a victim of a scam does not make you stupid, but rather makes you stronger and more resistant to stress. Faced with fraud, a person may become confused and do not know what to do. There is a credit fraud hotline for this. There you can receive information on where to go first and how to prevent fraud in the future. Our team also can help you. Click the item “Report a scam” and share your story. We hope that you will never be a victim of fraud, but if you are already, then do not do rash acts, but rather ask for help. Be aware of and safe from card fraud. Thank you for reading us and see you soon!

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Author of article

Arthur Specter

Interests: accounting, literature, banking, jurisprudence

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