According to the United States Federal Trade Commission, the degree of identity theft, which is more or less credit card fraud had been constant in the mid 2000s, had gone up by 21 percent in 2008.
Whereas some identity thieve semphasize on credit card fraud and using them to the limit, a growing number of them are utilizing other information to inappropriate your identity through online credit card theft. A February 2014 study into credit card fraud statistics established that, 13.1 million cases were reported in 2013, causing $18 billion losses.
How to protect yourself from credit card fraud?
In case you become a victim, this will assist in reporting credit card fraud and immediately creating credit card fraud alert:
- Put a "fraud alert" on your credit reports by calling one of the three national credit bureaus.
- File a police report.
- Communicate to your card issuer.
- Lodge a complaint with the Federal Trade Commission (FTC)
Card fraternities have credit card fraud detection systems that identify fraud attempts. In cases of a violation, the card fraternities will send each affected bank a list of card numbers that were jeopardized. The bank commences the credit card fraud investigation process immediately.
Different types of credit card frauds
The different types of credit card frauds include:
- Application Fraud; is identity theft for the use of applying for credit or a new credit card.
- Manual/Electronic Credit Card Imprints; data from a genuine card is imprinted or the magnetic strip is scanned and used fraudulently.
- Card-not-present (CNP) fraud; perpetrated if the account number and expiry date of your card are identified.
- Counterfeit card fraud; comprises scanning the card then the info is reallocated to a forged magnetic stripe card.
- Lost and stolen card fraud; your card is physically stolen or lost and then used by a criminal to make unapproved charges on your account.
- Card ID theft; a criminal uses your data to open or take over a card account in your name.
- Intercept card fraud; once the new or replacement card is diverted by a criminal.
- Assumed Identity; uses a false name with a temporary address.
- Doctored Cards; the metallic stripe on a card is erased using a strong magnet then the thief changes the details to valid ones and since the card won’t work, con the trader to input the details manually.
- Forged Cards; has false numbers and a false name and the card is not linked to any real account.
- Account Takeover; criminal impersonates you by submitting “evidence” of identity to the credit card company and applies for a replacement card to be sent to the new fake address.
How to report fraud
Credit card fraud penalties vary from state to state. Mostly, the statutes managing credit card fraud are regulated by individual states. Generally, both grand theft and forgery are felonies, imperiling the culprit to 16 months or two or three years in California state prison and a maximum $10,000 fine, or as a petty larceny to up to one year in a county jail and a maximum $1,000 fine. However, in Texas a thief gets a minimum of six months in jail, and a fine not exceeding $10,000. Below are several ways on how to prevent credit card fraud, how to avoid credit card fraud and how to protect you from credit card fraud:
- Ensure that you completely destroy personal documents or opt for email communication.
- Use your chip card for necessary transactions only.
- Avoid providing personal information to unknown requests.
- If you are in possession of your card when duplicitous transactions are made, you won’t be accountable for any of the charges.
How to get away with credit card fraud are not to discuss money problems in public; be co-operative in the workplace, take small amounts of money at a time just to mention but a few. The utmost vital thing is to monitor your statements for unapproved charges, and to report that activity promptly or just opt for credit card fraud insurance.