|
|
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. |
|
