According to the Federal Trade Commission, credit card fraud was the most frequent type of fraud reported in 2022. The total loss due to credit card fraud was $219 million.
It's even better to take credit card fraud prevention steps from the moment you get a new credit card, rather than waiting until you're a victim of fraud.
What’s the difference between credit card fraud and identity theft? Credit card fraud is a type of identity theft that involves using a stolen credit card or the information from a stolen credit card to make unauthorized purchases. Identity theft, on the other hand, is when someone uses your personal information without your permission to commit fraud or other crimes.Credit card fraud is a subset of identity theft, involving the use of a stolen credit card or credit card information to make unauthorized purchases. Identity theft, more broadly, is the unauthorized use of someone's personal information for any purpose.
Identity theft is broader in reach than the two. A thief who steals your identity might use your personal information, such as your Social Security number, to open a new credit card account, get a loan or even file taxes in your name.
When your credit card account is used for unauthorized purchases, this is called credit card fraud. For example, if you check your credit card account online and notice that there are purchases that you didn't make, this is credit card fraud. Another way you might notice credit card fraud is if you see an account you didn't open listed on your credit report.
Credit card fraud is a serious and growing problem. Every year, millions of dollars are stolen from consumers in the United States alone. Here are nine ways you can prevent credit card fraud:1. Never give your credit card number to anyone who calls you on the phone.2. Be cautious about giving your credit card number to anyone online. Make sure the site is secure before you enter your information.3. Never give your credit card number to anyone who emails you.4. Keep your credit card in a safe place. Don’t carry it with you all the time.5. Check your credit card statements regularly to make sure there are no unauthorized charges.6. If you lose your credit card, report it to your card issuer immediately.7. Be careful about using public Wi-Fi to make purchases or access your account information.8. Use a credit card that offers fraud protection, such as a prepaid card or one with a chips.9. Monitor your credit report for any suspicious activity.
- Never give out your credit card number over the phone to someone who calls you.
- Be very cautious about giving out your credit card number online. Make sure that the website is secure before you enter any information.
- Never give out your credit card number through email.
- Keep your credit card in a safe place at home; don’t carry it around with you everywhere you go.
- Check your credit card statements regularly to ensure that there are no unauthorized charges.
- If you lose your credit card, notify your card issuer immediately.
- Be wary about using public Wi-Fi to make purchases or to access your account information—wait until you’re on a secure network.
- Use a credit card that offers fraud protection, like a prepaid card or one with a chip.
- Monitor your credit report for any strange activity.
Although there is no foolproof strategy to prevent credit card fraud, there are some things you can do to reduce your risk. Learning a few credit card fraud prevention strategies is worth your time and can help keep your information safe.
- Keep your credit card in a safe place.2. Check your credit card statements regularly and report any suspicious activity to your bank immediately.3. Do not give your credit card number to anyone who you do not know and trust.4. Do not let anyone else use your credit card.5. Do not respond to unsolicited emails or phone calls asking for your credit card number or other personal information.6. When making online purchases, only shop at websites that you know and trust and that use secure socket layer (SSL) encryption to protect your personal and credit card information.7. When using your credit card at a retail store, make sure that you can see and/or feel the card reader and that it does not look like it has been tampered with in any way.8. Pay attention to your surroundings when using your credit card. If you feel like you are being followed or watched, go to a safe place and call the police.9. Keep a record of all of your credit card numbers in a safe place at home in case your card is ever lost or stolen.Here are 9 easy ways to prevent fraud:
- Keep your credit card in a safe place
- Check your credit card statements regularly and report any suspicious activity to your bank immediately
- Do not give your credit card number to anyone who you do not know and trust
- Do not let anyone else use your credit card
- Do not respond to unsolicited emails or phone calls asking for your credit card number or other personal information
- When making online purchases, only shop at websites that you know and trust and that use secure socket layer (SSL) encryption to protect your personal and credit card information
- When using your credit card at a retail store, make sure that you can see and/or feel the card reader and that it does not look like it has been tampered with in any way
- Pay attention to your surroundings when using your credit card. If you feel like you are being followed or watched, go to a safe place and call the police
- Keep a record of all of your credit card numbers in a safe place at home in case your card is ever lost or stolen
Use secure websites to protect your information.Use secure websites to protect your information. Unsecure websites could put your personal information at risk.
If the site is secure, a padlock will be visible on the left side of the address bar at the top of your browser. The web address will also begin with "https." Do not enter your credit card number on an unsecure website. Data security should be a priority for any business that wants your business.
Phishing scams are a type of online fraud that occurs when hackers pose as a trustworthy source in order to gain access to your personal information.Beware of phishing scams. These are when hackers pretend to be from a trustworthy source in order to get your personal information.
But when I called the number back, I got a busy signal.
Scammers will often pose as a government agency or some other organization that you trust in an attempt to get you to hand over your financial information. Here's an example: I recently got a call from what I thought was the Social Security Administration. I was told I needed to confirm my Social Security number to keep getting Social Security checks. First, I don't get Social Security checks. And since I knew this was a common scam, I was suspicious from the start. The caller ID even showed the call was from the SSA. But when I called the number back, I got a busy signal.
Today's scams are more sophisticated than ever. You might get an email that appears to be from your bank, complete with the logo, and assume it's legitimate. However, if the email requests your credit card account number, you can be sure it's a fake. A government agency or financial institution would never ask you to provide sensitive information via email.
Another way to spot these scams is by looking for typos in the communication. Thieves can be clever, but they often can't spell correctly.
If you're using an ATM, be on the lookout for skimmers.If you are using an ATM, be aware that there may be skimmers attached. Skimmers are devices that criminals use to steal your information. They attach skimmers to ATMs and when you swipe your card, the skimmer records your information. To avoid being a victim of ATM skimming, check for any unusual devices attached to the ATM before using it. If you see anything suspicious, do not use the ATM and report it to the bank.
Credit card thieves often use a device called a skimmer to steal your credit card information. They try to hide these devices on ATMs and fuel pumps and "skim" the data from the magnetic strip on the back of your credit card. EMV chip-enabled credit cards are also vulnerable to skimming because the cards still have a magnetic strip.
Whenever you pay for gas at the pump or use an ATM, be on the lookout for signs of tampering. If you're unsure at all, it's best to pay for your gas inside the store. If an ATM looks altered, find another ATM that's affiliated with your bank. Sometimes, a tiny camera is used to get a shot of your PIN. Use your hand to shield the numbers as you type it in.
It's important to be careful about what you share on social media. You never know who might be looking at your profile, and you don't want to share too much information that could be used against you. Be aware of what you post, and think about how it might be perceived by others.It's important not to overshare on social media. You never know who might be looking at your profile, and you don't want to share too much information that could be used against you. Be aware of what you post, and think about how it might be perceived by others.
If you think this doesn't need to be said, spend a few hours on any social media platform and you'll quickly realize that it does. If you have kids online, give them a serious talk about revealing too much personal information. Thieves comb through social media looking for clues that they can piece together about your life- where you live, your birthday, your financial data and much more. Tip: It's fine to post a cute photo of your dog, but don't use your pet's name for a password.
Mobile payment apps are becoming increasingly popular. They offer a convenient way to pay for goods and services. Many businesses now accept mobile payments.Use mobile payment apps to pay for goods and services. Many businesses accept mobile payments, so you can use your preferred app to pay for purchases.
Although the threat is still present, your credit card information is less likely to be skimmed at an in-store card reader. Increase your credit card fraud protection by using mobile payment apps, such as Apple Pay or Google Pay.
Tokenization is a technology used by these apps to allow you to pay without exposing your actual credit card account number. So, if your transaction information falls into the wrong hands, your actual account number remains safe. Also, if you have a password-protected phone, your screen may remain locked even if the phone is stolen.
You should never save your credit card information online. It's not safe to do so because there's always a chance that your information could be hacked. If you must save your information online, make sure to use a secure site.
It can be tough to remember to always type in your credit card account number when making purchases online, but it's a good way to decrease your fraud risk. Data breaches are becoming more common, so it's not safe to store your account information on websites, even if you trust the retailer. If you can take the extra time to find and enter your account number, it will pay off in the long run.
Don't use public Wi-Fi networks to make financial transactions. This includes logging into online banking, making online purchases, or accessing any other type of sensitive information. While public Wi-Fi is convenient, it's not secure. Hackers can easily set up fake Wi-Fi networks, which can be used to steal your personal information. So, it's best to avoid using public Wi-Fi for anything that requires a login or password.Public Wi-Fi networks are convenient but they are not secure. Do not use them to log into online banking, make online purchases or access any other type of sensitive information. Hackers can easily set up fake Wi-Fi networks which can be used to steal your personal information. It is best to avoid using public Wi-Fi for anything that requires a login or password.
If you disclose your credit card number or bank account over public Wi-Fi, you could be vulnerable to hackers because these networks are often unencrypted. Thieves may be lurking in public areas waiting to catch someone off guard and steal their information. Whenever possible, wait until you're on a secure network before making any financial moves.
This doesn't mean you have to avoid public Wi-Fi altogether; you can use a virtual private network, or VPN, to keep your information safe from crafty eavesdroppers.
If you lose your credit card or it's stolen, you should set up a fraud alert or credit freeze with the credit reporting agencies. This will help protect you from identity theft and fraud.If your credit card is lost or stolen, you should set up a fraud alert or credit freeze with the credit reporting agencies. This will help protect you from identity theft and fraud.
If you realize your credit card is gone, report this immediately to your credit card issuer so it can freeze your account.
If you aren't sure how long your card has been missing, the safest thing to do is set up a fraud alert or a credit freeze. With a fraud alert, when a thief tries to open an account, the creditor will typically call you to verify your identity and confirm that you were the one who applied. With a credit freeze, creditors can't even access your credit reports, making it impossible for them to approve a credit application by an impostor.
You can get a free annual credit report from each of the three major credit bureaus: Equifax, Experian and TransUnion. Right now, the credit bureaus are offering free weekly online credit reports. Unless you believe you're at high risk for fraud, checking one of your reports every four months is sufficient.
To avoid any potential problems, start by ensuring that all the data in your report is accurate. If you spot a large error, it could lower your credit score. Also, be on the lookout for new accounts that you didn't open. If you see any, it's a sign of credit card fraud or identity theft, and you should take steps to report it right away.
How can you protect your credit cards from fraud?There are a few things you can do to help protect your credit cards from fraud. One is to keep your cards in a safe place, such as a wallet or purse, and to keep them out of sight when you’re not using them. You should also never give your credit card number to anyone who you don’t know and trust, and be sure to only use secure websites when making online purchases. Additionally, you can sign up for fraud alerts from your credit card issuer, which will notify you if there is any suspicious activity on your account. By taking these precautions, you can help reduce the risk of credit card fraud.
Although you could be diligent about credit card fraud prevention, you might still be a victim of fraud. Fortunately, many of the major card issuers offer zero liability on fraudulent purchases. Also, federal law limits your liability to $50 if you report the fraud within 60 days.
You are responsible for being vigilant against fraud and for reporting any suspicious transactions as soon as possible. By catching fraud early, you can minimize the financial and emotional damage.
The final step you should take to prevent credit card fraud is to check your online financial accounts multiple times each week. Be on the lookout for any signs of fraudulent activity, and report it to the relevant authorities right away.