How To Prevent Credit Card Fraud

26 Sep 23 171 0 0

How To Prevent Credit Card Fraud

Cool Story - How To Prevent Credit Card Fraud

In 2022, there was a huge rise in credit card fraud. Fraud reports for new accounts surged by over 13%, while fraud reports for existing accounts increased by over 23%, according to the Federal Trade Commission (FTC). The FTC believes that 151 million Americans have been victims of credit card fraud at some time in their life after receiving a total of 441,822 new reports of the crime. That translates to over two-thirds of all credit card users.

In actuality, the payment mechanism with the most recorded incidents of fraud is credit cards. The rate of compromised card data increased by 368% from 2021 to 2022, according to FICO. Additionally, individuals between the ages of 30 and 39 are most susceptible to credit card identity theft.

Credit Card Fraud: What Is It?

Financial fraud involving the unauthorized use of another person's credit card number to make purchases or withdrawals is known as credit card fraud. Every year, millions of Americans are impacted by this critical problem, which will cost the nation $12 billion in lost revenue in 2021. Your credit card information may be stolen by fraudsters, or they may use it to start a new credit card account.

How Do Credit Card Fraud Incidents Occur?

Fraudsters can use your information to make purchases, money transfers, or cash withdrawals and leave the victim with the cost and possible credit score damage. There are many ways to get your information.

Scams in online shopping

Scammers frequently establish phony websites or online markets that mimic real ones to deceive unsuspecting victims into giving them their credit card numbers or other personal information. To generate a sense of urgency, the con artists may offer limited-time discounts or promote well-known products at low costs.

The con artists vanish once the victim makes a payment, never delivering the promised products or services. These malicious con artists might also defraud the victims' accounts or make false purchases.

Phishing Scams

Phishing is a sort of internet scam in which con artists send phony emails, texts, or social media communications that seem to be from a reliable source, such as a bank or credit card firm.

Typically, the messages request that the receiver click on a link or enter sensitive data, including their credit card number or login information.

You run the risk of getting spyware and viruses by opening links from these messages or downloading data from shady websites. These programs install themselves on your computer and are capable of recording keystrokes to collect your login information.

Card skimmer

By installing a device on or next to a legal cards reader, such as an ATM or petrol pump, skimming is a technique for collecting credit card information. The system reads and saves the credit card data, enabling the fraudster to access it later and execute fraudulent transactions.

How To Prevent Credit Card Fraud

Thankfully, a lot of popular credit cards have a $0 fraud liability limit for cardholders. But to keep your accounts secure, you'll still need to exercise caution. The following actions are wise to perform to safeguard your credit accounts.

· Keep the details of your credit card private.

· Keeping your card information secure is one of the most crucial steps you can take to avoid credit card theft.

· Regularly change your passwords. Make sure you select a password that meets or exceeds the strong password standards and that it is unique for each site.

· Use private Wi-Fi wherever possible to avoid making purchases or accessing your credit card account.

· Be cautious when letting your physical card leave your site and keep it in a secure location. Give your card information over the phone only if you place the call.

· Watch out for which websites you let save your credit card data.

· To reduce access to personal information in your mail or garbage, sign up for paperless statements. Before discarding any sensitive information, it's a good idea to shred it.

· When not in use, log out of your accounts.

Maintain Regular Credit Monitoring

Keep a watchful eye on your credit card account and transactions, and alert your card issuer right once to any unusual behavior. For transactions, many card issuers provide email or text alerts. Make sure to activate these notifications so you can see any unauthorized charges right away.

Regularly reviewing your credit report is also a good idea. You may use your credit report for free at AnnualCreditReport.com.

Use secure websites when making online purchases

Use only secure websites using encryption while purchasing online to keep your information safe. Look for "https" in the URL and the lock icon in the browser's address bar. Make sure your device's security software is up to date if you have it. Make sure you're running the most recent software version for any phone purchases.

Be Aware of Phishing and Skimming Scams

Be vigilant of unauthorized phone calls, texts, or emails that request your credit card information. Never click on any links in these communications, and never give out any financial or personal information unless you are certain that it is genuine. When in doubt, phone the retailer or go straight to the website from their home page.

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