Wednesday, January 25, 2023

How To Report Credit Card Scams

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The Difference With Chip Technology

How to protect yourself from credit card fraud

Cards with chip technology use an embedded microchip to encrypt information, making it more difficult for unauthorized users to copy or access the data on the card. The move to chip-enabled card technology is the latest innovation in an evolving debit and credit card payment environment. Chip technology is already tested, proven and in wide use around the world. Chip-enabled cards are quickly becoming the new global standard for enhanced safety and security.

Check The Lender Is Licensed By Asic

By law, all lenders must hold a credit licence from ASIC. You can check if a lender is licensed on ASIC’s website. Choose ‘Credit Licensee’ in the drop-down menu when you search.

If they don’t have a licence, don’t deal with them and report them to ASIC.

Kyle finds an unusual purchase on his credit card statement

Kyle needed to buy a new laptop. He found a great deal online for half-price. He hadn’t heard of the company before, but decided that the offer was too good to pass up.

The next week, Kyle noticed a large purchase on his credit card that he didn’t make. He called his bank straight away and asked them to freeze the account. Because Kyle acted quickly, the bank was able to ‘charge back’ and Kyle got his money back.

Kyle reported the website to his local police, and to Scamwatch so they could warn others.

Protect Yourself From Credit Card Scams:

  • Don’t leave your credit card unattended

    Never leave your credit card lying around and dont lend your card to anyonenot even your kids or a roommate.

  • Request credit reports annually

    Request your credit report from each credit bureau at least once a year. Knowing whats on your credit report can help protect you from credit card scams.

  • Keep financial information secure

    Keep a record of your account numbers, their expiration dates, and the phone number to report fraud in a secure place.

  • Shred important documents

    Shred important documents like your credit card, receipts, or important credit card documents before throwing them away.

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Information About Credit Card Fraud And Security

CIBC helps to protect you from unauthorized use of your credit card. We communicate and work with law enforcement agencies, Visa, Interac, the Canadian Bankers Association, credit reporting agencies and other financial institutions on an ongoing basis to protect you from credit card fraud. Despite our best efforts, you still need to take precautions to reduce your risk of becoming a fraud victim.

Recognize The Types Of Card Fraud

4 Ways to Report Credit Card Fraud

Skimming and cloning

Skimming devices can be illegally attached to ATMs and point-of-sale terminals to copy debit and credit card numbers when you swipe or insert your card. Fraudsters also use hidden cameras to capture PINs.

Card not present

Fraudsters may attempt to make fraudulent purchases over the phone, online or by mail using stolen card numbers and PINs. Many online merchants ask for the 3-digit CVV number to confirm authenticity.

Lost or stolen card

Fraudsters can make unauthorized transactions on your missing debit and credit card. It’s important to report a lost or stolen card right away so we can help prevent unauthorized use.

Identity theft

Fraudsters can use your card to make transactions without your knowledge. They can use stolen debit and credit cards or information, or get new credit cards by applying with stolen personal information.

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Am I Responsible For Fraudulent Charges On My Credit Card

According to the FTC, under the Fair Credit Billing Act, the maximum amount you have to pay for any unauthorized use of your credit card is $50. Moreover, if you report the card theft or loss before it is used, you are not liable for any credit card fraud charges at all. If your credit card number is stolen, you are again not responsible for any unauthorized use.

Still, remember that some banks may ask you to pay the monthly or annual usage fee for the credit card. Be sure to check with your credit card provider for their policies about credit card fraud as many are slightly different

How To Avoid Gift Card Scams

Retailers often train their employees to spot potential victims of gift card scams. Weve increased in-store signage to warn our guests of common gift card scams, and weve heightened team member education so they can keep an eye out for potentially distressed guests buying gift cards and intervene as needed, Target said in a statement to Forbes Advisor.

But a gift card purchase may not make a cashier suspicious, especially during the holidays when many shoppers are buying them as valid gifts.

The best way to avoid gift card scams is to remember that no legitimate business or government agency will demand payment via gift cards. If youre in doubt, hang up on the caller or block them from emailing or texting you.

If you or someone you know falls victim to a gift card scam, make sure you keep your receipt as it has identifying information about the gift card. Then take these actions:

Even if you dont fall for the scam, take a few minutes to file a report to the FTC and your state attorney general. Doing so could help catch a fraudster and prevent them from victimizing others.

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How To Help Protect Yourself From Credit Card Fraud

Taking the steps above could help you move on more quickly if youâve already been a victim of credit card fraud.

And if youâre a Capital One customer, your credit card has a number of security features that can help you detect fraud in the first place. From fraud alerts to instant purchase notifications and more, you can access and enable security features by adding the Capital One Mobile app to your phone or by signing in to your account online.

The FTC also suggests following these best practices:

  • Donât give your account information over the phone unless youâre sure the caller is who they say they are. If youâre not sure, ask to call them back to give yourself time to check.
  • Donât lend your card to anyone, and shred old cards, statements and receipts.
  • Watch for suspicious behavior during any transaction that requires you to hand over your card.
  • Save your receipts to compare them with your monthly statement
  • Be on the lookout for phishing scams that ask you to click links, open attachments, or ask for money or for you to share personal information.

Itâs also a good idea to check your as often as you can and question anything you donât recognize. You can get one free credit report every 12 months from each of the three main credit reporting agencies. And under the current provisions for COVID-19, those same agencies say you can check it for free once a week until the end of April 2021.

Who Is Responsible For Credit Card Fraud

How Credit Card Fraud Works & EMV Card Shimming | Bank Fraud and Scams: Credit Card Fraud

If youve been the victim of credit card fraud, you normally wont be liable for unauthorised payments on the card during the fraud. This is because youre covered under the Consumer Credit Act 1974.

The Act means you can claim back the money you lost due to fraud.

There are two circumstances that would mean you would not get all the money back though.

  • If your card was lost or stolen, you are liable for the first £50. If you report your card missing quickly youll often have this fee waived.
  • If you were behaving negligently not paying enough attention to the security of your card and its details.
  • Here are some examples of when your bank might say you were negligent and wouldnt reimburse your money:

    • Its been 13 months or more since the fraudulent activity happened on your card.
    • Your card provider can prove you authorised the transaction.
    • You acted fraudulently like pretending a payment wasnt you when actually you know it was.
    • You didnt protect your card details, PIN or password for example writing your PIN down on some paper that lives in your wallet with your card.

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    S To Take If Youve Lost Your Credit Card

    If you lose your credit card, notify your bank immediately. Upon notification, the bank should cancel your lost credit card and reissue a new one.

    Other things you can do:

    • regularly monitor your credit card statements for any transactions that you didn’t make
    • carry your cards in a safe place
    • keep a list of your bank and credit card numbers in a safe place at home for reference purposes

    Reporting Internet Banking Fraud

    If you receive an email asking for your bank account details, report it to the ACSC.

    If you are the victim of internet banking fraud, report it to your financial institution and find out about their process for investigating the incident. Once the financial institution clears you of any involvement, generally under the Electronic Funds Transfer Code of Conduct they will reimburse your bank account. Under Victorian law, the financial institution is the victim of the criminal offence not you. The responsibility for reporting the crime is therefore with the financial institution.

    If you also report to ACSC, this will give Australian law enforcement a national picture of the overall cybercrime issue and will assist in reducing the incidence of cybercrime.

    For more information on unauthorised and mistaken transactions visit

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    Notify The Police Of Identity Theft

    After filing a report with the FTC, you may also wish to report the fraud and identity theft to the police. This is completely optional, and youll want to take the following materials with you:

    • Government-issued photo identification
    • Proof of address
    • A copy of your Identity Theft Report from the FTC
    • Any proof of theft
    • FTC Memo to Law Enforcement

    The impact of fraud and identity theft on individual lives and finances is rising every year. Educate yourself about credit card fraud statistics so that you can take precautions when it comes to your money. To help stay vigilant about fraud, link your credit card account to the Mint app, so you can keep track of any suspicious transactions.

    Check out the infographic below for more information about fraud and identity theft and how to prevent it, as well as cybersecurity tips and best practices.

    Be Wary Of Credit Card Protection Offers

    Credit Card Fraud: How to Report It and What to Do Next

    This type of insurance is unnecessary because of the federal limits in place. Often times, your bank or credit card company will have identity protection or fraud protection services already in place just by being a customer. Third-party companies that offer credit and identity theft insurance can be expensive and often simply follow the same steps that you would in reporting unauthorized spending on your card.

    But beware: some scam artists try to sell $200-300 credit card insurance by falsely claiming that cardholders face significant financial risk if their cards are misused.

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    Follow Our Best Practices To Protect Yourself

    • Keep your PIN safe. Don’t write down your PIN or share it with anyone. Cover the keypad with your hand when entering your PIN at an ATM or point-of-sale terminal.
    • Make your PIN unique and difficult to guess. Don’t include information that’s obvious or confidential, such as birthdates, phone numbers, addresses or your SIN.
    • Keep your card within sight at all times. Remember to take your card and transaction record with you once you complete your transaction.
    • Sign the back of a new or replacement card as soon as you receive it. Cut up or shred your old card.

    How Do I Report Credit Card Fraud

    The process for reporting credit card fraud depends on the type of fraud. If you spot fraudulent purchases on your card, you can report them to your issuer. You can easily report credit card fraud to your card issuer through its website or mobile app. Of course, you can also call the number on the back of your card.

    If the credit card fraud involves unauthorized accounts opened in your name, there are two steps you need to take. First, contact the card issuer and alert them to the fraudulent account. You can usually do this online or by phone.

    Next, contact the and report the credit card fraud by disputing the account. You’ll need to file an account dispute with each credit bureau — Equifax, Experian, and TransUnion. Identity theft should also be reported to appropriate legal authorities, including the Federal Trade Commission . Check for help reporting identity theft.

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    The Two Types Of Credit Card Fraud

    • In-person fraud, or card-present fraud, is when someone steals your card, creates a counterfeit card with your account information or otherwise uses your account information for an unauthorized transaction while they’re at a merchant.
    • Remote fraud, or card-not-present fraud, is any other situation when someone fraudulently uses your credit card account to make a purchase, such as shopping online.

    Once you report an unauthorized transaction, the credit card company may work with you to confirm it’s a case of rather than a simple mistake. For example, a merchant overcharging for a purchase you made or failing to deliver a product is not necessarily credit card fraud. You may be able to initiate a chargeback and get refundedbut you wouldn’t go through your card issuer’s fraud channels to do so.

    If you are a victim of credit card fraud, the federal Fair Credit Billing Act limits your liability to no more than $50 for unauthorized charges. However, American Express, Discover, Mastercard and Visa go one step further and bring that liability down to $0 on consumer credit cards.

    What To Do If Youre A Victim Of Credit Card Fraud

    International students report credit card fraud

    Contact your financial institution immediately if your credit card is lost or stolen. Contact it if you find payments on your credit card statement that you didnt make or approve.

    If you think youre a victim of credit card fraud:

    • write down what happened and how you first noticed the fraud
    • contact your credit card issuer to tell them about the fraud
    • take notes of who you talked to and when you spoke to them
    • keep all documents that you think might be helpful when the police investigate the fraud
    • contact your local police service to file a complaint
    • contact other accounts that could be tampered with by the person

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    Debit Card Vs Credit Card Fraud

    When it comes to protecting your wallet, its important to know what payment methods scammers are targeting. Although many credit cards offer protections or zero liability against fraud for consumers, theyre also the most frequently targeted payment method. Debit cards follow as a close second, so its best to guard your card information closely.

    12. Out of nearly 2.2 million reports of fraud in 2020, only 373,423 identified a payment method.

    13. Of those, 91,515 reports identified credit cards as the payment method.

    14. Making up nearly 25% of fraud reports with payment identified, credit cards were the most common payment stolen.

    15. In contrast, debit cards were identified as the payment method in 63,352 fraud reports.

    16. Debit cards made up 17% of fraud cases that mentioned a payment method, and theyre the second most common payment method used.

    17. Credit card fraud resulted in more lost dollars than debit cards in 2020, with $149 million in total losses.

    18. Debit cards resulted in a total of $117 million lost in 2020.

    Report Fraud And Identity Theft To The Ftc

    To report identity theft, simply file a report online with the FTC. After filling out the online form, an identity theft report and recovery plan will be made for you. This report is based on the information you provided in the online form, so try to be as detailed as possible. With a report, you have proof that your identity was stolen and youll be afforded certain rights.

    Remember to print your report if you choose not to create an account at because you wont be able to access or update it later. You can also opt to create an account to keep track of your recovery plan and forms online.

    You can now also report fraud online to the FTC by filling out a quick report, but it isnt necessary to file both an identity theft and fraud report.

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    Detecting And Fending Off Credit Card Fraud

    It’s possible to detect credit card fraud early by routinely checking for signs of shady activity on your credit accounts:

    • Review your card statements monthly, whether you get them online or in hard-copy form, looking carefully for unexpected purchases or cash advances. If you see any unfamiliar purchases, contact the card issuer immediately to dispute the charges.
    • Check your credit reports from all three national credit bureaus . You can download your reports for free at Once you have your reports, look for unfamiliar inquiriesand loan or credit card accounts that you didn’t open. If you see any credit report entries that look fishy, use the contact information in the credit report to notify the creditor in question. They can give you more information, begin an investigation and may ultimately notify the credit bureaus to remove the account. You can also file a credit report dispute if you believe there are inaccurate entries on your credit reports.

    If you suspect you have been the victim of identity theft, consider visiting the Experian Fraud Center to place a free fraud alert on your credit report. When a fraud alert is in place, potential new lenders are asked to verify your identity before issuing any new accounts in your name. You only have to contact one credit bureau to have a fraud alert put in place on all three of your credit reports. You can cancel the alert at any time.

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