Credit card fraud is a type of
identity theft that involves the unauthorized use of a person’s credit card
information for a scammer’s own personal gain. The credit card information
could be acquired through phishing attempts or simply by buying their details
from hackers through the black market. Credit card fraud also takes place when
a person uses his or her own card knowing that it has expired or lacks enough
money to make a series of purchases.
If you happen to fall victim to credit
card fraud, there are some immediate steps that should be
taken:
1. The
card issuer should be immediately called and a letter should follow this call.
The letter should contain the card number, the date the card was issues and the
date when its loss was discovered. When the loss is reported, the holder is not
responsible for any kind of further charges the card may incur. In case of a credit card fraud, there is the need to issue a fraud affidavit. If a
fraudulent charge is reported, the card issuer may ask the holder to sign an
affidavit that he did not make the purchase in question. It is a written statement which the holder
signs under oath swearing that the things mentioned are true to the best of his
knowledge.
2. Some
careful attempts on the part of the card holder can be extremely useful for the
prevention of credit card fraud. According to the new law, the consumers have
the right to request a free copy of their credit report. On a special request,
a copy can be mailed to the holder as well. Credit card reports should always
be checked, at least once in a year as it is one of the best ways to prevent
identity theft. It also gives an opportunity to the card holder to make sure that
all the items and the credit accounts enlisted, are true and in the knowledge
of the user. One can also place a fraud alert on the credit card report. This
ensures that the creditors contact the holder before any new account is opened
in his name or when any changes are made in the already existing accounts.
3. There
are various agencies which can help when a credit card fraud is detected. These
agencies regulate banks and also help the consumers deal with different kinds
of bank and credit card frauds. Different agencies are in charge of regulating
different types of banks.
4. The
card issuers also have a great deal of responsibility in preventing credit card
fraud. They should have fraud detection and prevention software that can
analyze and detect the patterns of normal and abnormal behavior. They should
contact the cardholder to verify any unnatural activity. The cards should be
blocked till the transactions are verified by the account holder. The
authentication measures should also be strong like Multi Factor Authentication
should be used which requires personal devices like smart phones and watches.
