Credit Card Fraud

Have you ever been a victim of credit card fraud?

Have you ever had your credit cards stolen?

Credit Card Fraud

Credit card fraud cost credit card companies and cardholders over 2 billion dollars a year. There are numerous forms of credit card fraud that can be committed by thieves, legitimate cardholders and even business owners. Lost or stolen credit cards make up half of the losses incurred by credit card companies each year. The greatest number of stolen cards is taken from the cardholders’ vehicles. Following closely in second place is the theft of credit cards in the workplace.

Fraudulent Application

Fraudulent application is the use of information misrepresentation to obtain a bankcard. The use of a true name with a false address is a common form of fraudulent application.

Counterfeit and Altered Credit Cards

Counterfeit and altered credit cards are another form of credit card fraud. Counterfeit cards are those that are illegally manufactured by persons other than an issuing bank. Altered cards are genuine cards that have had their properties changed by mechanical or electronic means. Embossed numbers can be flattened allowing reprinting and magnetic strips can be re-encoded to match or not to match the new number on the front.

“Moto” Crimes

Unauthorized use or no card present fraud are some of the easiest types of credit card fraud to commit. These crimes are known as “moto” crimes, standing for “money order telephone order.” This is the ordering of merchandise in which the merchant only gets a credit card number and never verifies the validity of the card or looks at a signature.

What Should I Do If I Think Someone Has Charged On My Credit Card?

Call your creditor and explain everything that has happened, and ask them to dispute the charges. You should then receive an affidavit of forgery in the mail, sign it and mail it back. You should photocopy the information for your records. Inform local police and record the case number

Steps You Can Take To Prevent Credit/Debit Card Fraud

  • Do not write your credit card number on a check
  • Do not give your credit card number over the phone unless you placed the call and are dealing with a reputable company
  • Review your credit card bill carefully each month, checking charges to your account against your receipts
  • Be aware of when your statement should arrive and when your cards expire so that if your mail is intercepted, you are more likely to realize it

    • How Much Of The Fraudulent Credit Card Charges Will They Remove From My Bill?

    Once you have reported the credit card fraud, you have no further responsibility for additional fraudulent charges. Your maximum liability is $50 per credit card. That is part of the Electronic Funds Transfer Act.

    Since credit card fraud is prevalent in today’s society we must take steps to secure our credit cards.

    Treat credit cards as you would handle currency of the same value. Keep in mind a credit card with a $5000 limit could be used in the same manner as $5000 cash. Also remember that losses by credit card companies are passed from the credit card companies to the consumer.
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