Credit Card Fraud occurs when the fraudsters use the credit
card of another person for making financial gain for themselves. It has been
reported by Statistic Brain that 10% of Americans are falling victim to frauds
associated with credit card. It is therefore
essential that you know about the operation, prevention and post-victimization
steps, related to credit card fraud
OPERATION
The operators of credit card fraud use the information of
your credit card, without your knowledge or permission for making unauthorized
purchases or withdrawal of cash. As per the Federal Trade Commission (FTC), the
following are the operation strategies adopted for committing a credit card fraud.
● Theft: This is
the most common mean in which the fraudster steals your credit card,
physically, either from your wallet or the whole wallet.
● Dumpster Driving: The fraudsters thoroughly search your waste paper box or garbage bin and
pick out the thrown out statements; such as credit card statement, bank
statements or purchase receipts that carry your personal information. They also
pick your unused credit card applications.
● Skimming: The
fraudster or a hidden camera, takes photographs of your credit card or watches
your operation of entering your PIN
● Phishing:
Fraudsters, posing themselves to be from your bank or credit companies, through
emails or phone calls, ask you to confirm the details such as your account
number, account passwords, social security number or log in information
● Hacked Website:
Hackers break into the servers of large companies and steal the credit card
information of customers. Therefore, such large companies are adopting heavily
adopted encrypted systems for deterring the hackers
PROTECTIONS
The first step is to prevent it from happening by adopting
presence of mind, prudence, alertness and strict vigilance. Keep your card and
statements in the most secure place. Never carry your credit card or other
documents containing your personal information,
in your wallet; and never lend your credit card; even to your closest friend
or family member. Opting for electronic statement, instead of paper copies is
still better. If you don’t need the old statements, toss them out after
shredding the same. The following are other means of protection
● Check your account regularly and be alert
of any entry of unexpected transaction,
particularly related to purchase
● Safe Shopping locations: Do not make any purchase on a public wireless network or
public computer. In case of any suspicion, investigate first and log off the
site after making a purchase
● Identity Theft Protection: Invest on Identity Theft protection, if you have many
consistent buying, online and have time to look into your transactions,
regularly.
Post-Victimization Steps
According to FTC, if you immediately inform the theft of your
credit card, your liability is limited to $50 and nil for subsequent charges.
The following are the steps to be followed
● Inform your credit card issuer about
the situation
● Inform all the three credit card
bureaus so that they flag your account
● Submit a Police Report
● File a complaint with the FTC
● Take out any credit card information,
stored on any online stores
● Hire Credit Monitoring Service that
informs you any such eventuality.