Tips to help you deal with credit card fraud
Chip cards have an added layer of fraud prevention. Remember that when shopping online, your purchases do not benefit from the additional protection.
According to the Federal Trade Commission, credit card fraud is the most common type. They estimate the overall loss to be around $150 million per year. Knowing what to do when you are the victim of credit card theft fraud is essential. You should practice credit card security as soon as you get a new card, making it an essential step in preventing fraud. Use these tips to protect your information.
What is credit card fraud
Someone else using your credit card for fraudulent purchases is considered credit card fraud. For example, when you view your card account online, you may find transactions that do not belong to you. Although card issuers such as an American Express credit card generally do not hold you responsible for such purchases, you should always be vigilant and look out for suspicious activity.
There is no single approach to fully prevent credit card fraud, but everyday actions can increase your risk of fraud. Practicing credit card security pays off in the long run.
How can you prevent credit card fraud
Scammers have various methods to steal your information. There are many reports of fraud, increasing every year. Scammers trying to get your information are looking for an opportunity to catch you in a weak spot. However, knowing what to look for helps your decision-making skills. Here are some ways to avoid fraudulent activity:
- Do not access any unsecured website.
- Do not post your personal information on social media.
- Do not save your card information online.
- Do not use public wifi for online transactions.
- Check your credit card statements frequently.
These are simple yet powerful steps that keep your information secure. However, if you are an online business and want to improve your customer experience or cx, be sure to protect your customers’ private information at all costs.
What are phishing scams?
This scam is delivered via email, text or phone, trying to get your financial information. The scammer may call you and pretend to be from a trusted institution, such as the Social Security Administration or even your bank.
Today, scams are becoming more and more sophisticated. For example, you might receive an email that looks suspiciously like your bank’s logo, leading you to believe it’s genuine. One way to tell the email is a scam is to ask for personal information, such as your debit card number. Fundamental institutions will never ask you to give them your sensitive information.
Why buy in store with chip readers
Because cloning cards with a chip is more complex, having one gives you more protection. However, some retailers still use magnetic stripes. Limit your shopping at these stores when possible.
Chip cards have an added layer of fraud prevention. Remember that when shopping online, your purchases do not benefit from the additional protection known as card not present. Cardless fraud occurs when you provide the site with your card number, but do not use chip technology.
How to set up fraud alert and credit freeze
When you realize your credit card is missing, notify your credit card issuer immediately so they can block your card. That said, use a fraud alert or credit freeze when you don’t 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 make sure you made a claim. But, a credit freeze prevents creditors from seeing your reports, making it difficult to approve a fraudulent application.
When to make credit card security a habit
As a final step to make the security process easier, check your accounts online several times a week. Keep an eye on purchases you haven’t made. Early detection of fraud facilitates long-term management.
Making sure your information is secure is one of the most important things. Keeping track of your information doesn’t have to be complicated. Instead, follow these few steps to stay on top of your private information and stop the fraud before it starts.