Thu. Jan 27th, 2022
credit card fraud

Avoid credit card fraud

A little known fraud tactic is one involving prepaid debit cards.  Prepaid cards allow users to reload funds through the web, their phone or through a customer representative. A card-not-present transaction is acceptable if the bank representative agrees to provide authorization for the amount requested. Several procedures have been put in place to prevent a security breach but there still exists a common threat to the electronic medium.

The Validation Process

Validation processes are meant to ensure only the user makes certain transactions but in a brick and mortar location, there is always a chance of someone copying your card details. One of the many ways fraudsters gather information is when people use their cards and forget their credit card receipt. It is worse if you have signed the receipt because then someone could easily copy your signature and this is what commonly leads to identity theft.

In most cases, identity thieves will try to get your mailing address on the Internet or on a phone book. With this information, it would not be difficult for an unscrupulous person to start making purchases using your card, either by phone of through the web.

Another scenario that can lead to credit card fraud is when the wrong person receives your preapproved credit card offers.

credit card scamIf they get this information from your mail box or trash can, then they can apply with a change of address. You would not know about it until the credit card company comes after you demanding you pay for the purchases you have made.

Private information such as your full name and social security number should be kept secret because fraudsters can use it to access your bank account, get loans, insurance, buy cars, etc: all in your name.

If you are like most people who throw away their pay stubs after recording the amount in a checkbook, then you risk giving criminals valuable information that can be used in identity theft.

That little piece of paper contains this information:

  • Full name
  • Address
  • Social security number
  • Bank account number — for direct deposit
  • Employer and address
  • Rate of pay

Now, when you want a credit card, to lease a car or to take out a loan, this is the information that will be required, among other details. Fraudsters only need this to infiltrate your finances.

You can take measures to prevent anyone from stealing your personal information lest it be used to make purchases on your card or worse, to take out a mortgage.

Here are the safety tips:

  • Do not share your credit card information with anyone
  • Shield the keypad whenever you key in personal information
  • Always keep an eye on your card to prevent double swiping or skimming
  • Check your statements regularly
  • Shred your cards when you are done with hem
  • Remember your card number and who to contact if you suspect theft
  • File a report with the police if you are a victim of credit card fraud

American Express, MasterCard and Visa have set in place a number of consumer protection policies that could be of use to you if you are ever a victim of identity theft.

By Shelly Evans

Shelly Evans is a freelance writer and loan consultant. She specialize in writing articles about obtaining financing despite having bad credit. She has more than 16 years in consumer credit and collections and 4 years in business financing.

5 thoughts on “Protect Your Card Against Credit Card Fraud”
  1. I try to keep most receipts and shred them, but sometimes at dinner or the gas pump I leave them. Guess its out of “Well that fraud could never happen to me” mindset. Will waork on this, knowing things thieves use can help prepare you more.

  2. I am bad about all of this, I even have left my card at several drive thrus getting food. Do you know a good checklist on how to remember to get the receipt. Like what to always make sure you have.

  3. I know that mindset, but you really need to make it a habit to protect yourself. Once someone gets a hold of your credit and starts racking up debts in your name, you will wish you had! Its unfair, but you have to prove to the credit bureaus that you are not responsible for those fraudulent accounts. Its not easy, its time consuming, and it can really make your life hard.

  4. I don’t have a checklist but you really need to be more careful. While most credit card companies are always monitoring accounts for fraudulent activity, its up to you to keep your cards safe.

  5. You article says, “American Express, MasterCard and Visa have set in place a number of consumer protection policies that could be of use to you if you are ever a victim of identity theft.”
    What options do these credit card companies have in place? Did you actually research this or did they just TELL you that? Because I purchased a prepaid Visa a couple of weeks ago and someone managed to use it in Idaho and San Diego, CA before I even took it out of the package. I called their “Customer Service” department immediately and was told I would have to wait 2 weeks before I could file a fraud report. They also told me not to expect anything to happen once it was filed. All they could tell me were which cities my card was used in. Any “protection policies” are in name only.
    However, it is helpful if you like to complain and just want someone to listen… so there’s that.

Leave a Reply

Your email address will not be published.