Did you know that 47% of Americans have reported being a victim of credit card fraud in the last five years?
Nilson Report estimated that losses due to credit card fraud in 2016 totaled over $22.8 billion!
Do you want to avoid being one of these statistics?
Taking steps to prevent credit card fraud can save you money and frustration.
What Is Credit Card Fraud?
Credit card fraud is a form of identity theft.
It involves taking another's credit card information without permission for the purpose of charging purchases to the account or removing funds.
US Federal law limits personal liability to $50. However, many banks will waive this entirely if you sign a form explaining the theft.
Two main types of credit card fraud:
Application fraud: unauthorized opening of credit card accounts in another person's name
Account takeovers: hijacking an existing credit card account
You check your credit card statement and notice that over $500 were charged to your card at a hotel over the weekend. You never went to a hotel! What type of credit card fraud are you a victim of?
Protect Yourself From Credit Card Fraud
You can't always prevent credit card fraud, but the good news is that you can definitely take steps to make it harder on would-be thieves.
Here are some everyday practices recommended by the Federal Trade Commission (FTC):
In a secure place, keep a record of your account numbers, expiration dates, and phone numbers for each card and company in case you need to report fraud.
Don’t lend your card to anyone.
Don’t leave your cards, receipts, or statements around your home or office.
When you no longer need a card, shred it before throwing it away.
Sandy just got a new credit card. What should she do to protect herself from fraud?
What To Do If You See Unauthorized Charges On Your Statement
Call your credit card company immediately.
Check your bank accounts, and change your passwords.
Notify your local credit bureau, and contact the police, if necessary.
Continue to monitor your statements and credit reports.
Check your online shopping accounts, and consider changing your passwords there, too .
Sandy is sure her credit card has been hijacked. What should she do first?