Thursday, December 1, 2022

What To Do If You Suspect Credit Card Fraud

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Confirm The Transaction Via The Billing Address

Identity theft: How criminals use a low-interest credit card scam to steal from you (Marketplace)

If the billing address on the card doesnt match the customers shipping address, its worth your time to confirm with the cardholder at their address. Send a letter to the billing address with a confirmation code consisting of random numbers and letters. Ask the customer to call, text, or email you once they receive the letter to read you the confirmation code.

If the customer seems upset over this , tell them its your policy any time someone uses a shipping address thats different from their billing address.

If the customer doesnt live at the billing address , they wont be able to verify the transaction. Once you explain your system, theyll most likely stop replying to your emails.

Protect Yourself From Future Credit Card Fraud

Whether you’ve been a victim of fraud or not, you should follow the steps below to be proactive and reduce future chances of card theft.

  • Monitor your credit card accounts: A key step to spotting fraud early is to regularly monitor your credit card accounts online or in your bank’s mobile app. Aim to monitor your accounts every day, but at least once a week is a good start.
  • Sign up for transaction alerts: Many card issuers allow you to set alerts for transactions that exceed a certain limit, if purchases were made internationally or if balance transfers were made to your account. It’s a good idea to set these up so you can be alerted of possible fraud.
  • Freeze your credit: If you want to prevent fraudsters from opening accounts in your name, freeze your credit reports with all three credit bureaus.
  • Check your credit score: There are dozens of free credit score resources from sites like Experian that allow you to track updates to your score. If you notice a drop in your credit score, that may be an indication of fraud.
  • Consider credit monitoring services: There are free and paid credit monitoring services, such as and IdentityForce®, that can provide you with early notice of potential fraud on your credit report. This allows you to take steps to protect your personal information. If you want to learn more about how credit monitoring works and free and paid services, check out Select’s list of the best credit monitoring services.
  • Who Is Responsible For 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.
    Find out more in our guide How chargeback and section 75 protection work for your credit and debit card

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    How Credit Card Fraud Happens

    • make a purchase at a place of business
    • make a purchase or transaction online
    • make a purchase or transaction by telephone
    • withdraw money from an automated teller machine

    A person can steal your credit card or credit card information by:

    • going through your garbage or mailbox to find credit card statements or other banking information
    • swiping your credit card through a device that copies the information stored on the magnetic stripe of your card
    • hacking into the computers of companies and stealing credit card information
    • installing small devices on payment terminals that record your credit card information
    • phishing, that is, sending you an email that looks like it comes from a real business asking for credit card information
    • asking you to use your credit card on an illegitimate website to make a purchase

    What Can You Do If You’re A Victim Of Credit Card Fraud


    Even with all these safety measures in place, it’s best to be mindful of credit card fraud. If your card is lost or stolen, contact your credit card issuer right away so it can cancel your card and send you a replacement.

    You might need to take additional steps if your personal information is stolen or there are unauthorized charges on your account and you still have your card:

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    How To Be Proactive

    While preventing credit card information from being stolen can be tricky, there are a few ways you can be proactive about protecting your information:

    • Check account activity regularly either online or via mail. Monitoring your account activity will enable you to catch fraud as soon as it happens.
    • Dont give away personal information in response to an email or an incoming call. If someone calls you asking for personal details like a credit card number, assume that it is a scam.
    • Check credit reports at least once a year to confirm credit activity. All three major credit bureaus allow one free credit check a year.
    • Only purchase items online from well-known and secure websites. Always look for the lock icon in your web browsers address bar before entering personal information into a website online. Stay away from unfamiliar ecommerce websites and be weary of websites that ask for additional personal information when making a purchase.
    • Dont store credit card information on online retail sites. Some retail sites may recommend you store card information for faster checkout. This could lead to issues down the roadespecially if the company experiences a data breach.
    • Keep credit cards that arent regularly used at home. If a credit card is only used during special occasions, keep the card at home to prevent it from being stolen while not in use.

    Change Your Login Information

    If you’re a victim of regardless if it was your actual card that was stolen or just your account number you should change your username, password and PIN to prevent further fraud. This can prevent fraudsters from accessing your information and further secure your account. And if you realize specific online accounts were hacked, such as you account, be sure to change that login information too.

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    Keep Up To Date With Scams

    Hundreds of scams are developed every day and some are easier to identify than others. Keeping up to date with the latest scams will empower you to identify a scam straight away and avoid becoming defrauded. Keep an eye out for suspicious emails requesting you to open attachments, provide personal details or click on a link. If you are in doubt contact us on and remember, Westpac will never include links to login pages, or request you to update your personal details information, account details, PIN or passwords in an email.

    Online Shopper Stay Safe

    Crime Stoppers of Southwest Idaho: Do you recognize these credit card theft suspects?

    While shopping online can be safer than sending your credit card number through the mail, there are still precautions you should take when it comes to electronic transactions.

    • Be sure that any page that asks you to enter credit card or other personal information has https in the address bar . Remember, https not just http.
    • Avoid phishing scams. These can come in the form of emails that look legitimate but are actually from fraudsters representing themselves as banks, retailers, and other businesses. By clicking on a link in a phishing email, you may be falling into the scammers trap. To be safe, type the URL yourself, rather than clicking on an emailed link.
    • Dont provide any personal information, including a credit card number, unless you initiated the contact. Legitimate businesses will not reach out, asking for your credit card number.

    Shopping with credit cards is both familiar and convenient. With a little extra effort, you can also help ensure that your credit card data stays safe.

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    Things You Can Do To Avoid Credit Card Fraud

    In FY 2014/2015 the Australian Payments Clearing Association reported over $405-million in credit card and debit card fraud. Imagine if you woke up one morning and your entire bank account was empty or suddenly your credit card was maxed out with a list of charges you did not make. Credit card fraud is a very real threat in todays ecommerce based society and as technology expands, offering more convenient ways to pay the opportunities for credit card fraud and criminal activity expand also. Here are 10 precautions you can take to protect your and identity.

    How Credit Card Fraud Hurts Your Business

    We all know that fraud is bad, but what are the consequences for your business? Let’s take a look at what happens when there’s fraud.

    A fraudster makes a purchase with a stolen credit card. The real cardholder sees the unknown charge and disputes it to the bank. The bank returns the money to the cardholder .

    But someone still needs to pay for that purchase. That’s right – the bank will seek to recover that money from the merchant. In total, your losses are:

    • Loss of the sales amount
    • A chargeback fee that usually ranges from $15-$50
    • Time spent dealing with the chargeback
    • Merchandise replacement

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    Report Identity Theft Immediately

    Report identity theft to the Federal Trade Commission

    If you suspect identity theft, call the FTC at 1-877-438-4338 to speak with an identity theft counselor. Or visit,

    File a police report

    Contact your local law enforcement agency to file a report involving identity theft. Give a copy of the FTC theft complaint to law enforcement when you file a report. Contact your state’s Attorney General’s office to see if an Identity Theft police report is required.

    Contact the credit reporting agencies

    If you suspect identity theft, contact the credit reporting agencies immediately and have a Fraud Alert placed on your profile. This 90-day alert provides extra security should anyone try to open an account using your identity.

    If you suspect a fraudulent account has been opened using your identity, contact the credit reporting agencies immediately and have a Fraud Alert placed on your profile. Once the dispute has been resolved, the credit reporting agencies will send you another copy of your credit report. Review it to make sure that all fraudulent activity has stopped and your file has been corrected.

    For more information, contact:

    Ongoing review all your accountsContinue to review all charges and transactions appearing on your account statements and online account activity. Immediately report any discrepancies to the financial institution.

    Check these resources for more information:

    Call Your Credit Card Company Immediately

    10 Reasons Not to Have a Credit Card

    First and foremost, its important to get ahead of the criminals using your card before they can inflict more damage.

    Major card networks like Visa and Mastercard have zero liability policies designed to ensure that you wont be held responsible for unauthorized charges made with your credit or debit card or account information. The same goes for credit card issuers like Citi, which promises $0 liability for unauthorized charges on all its cards, including Citibank® debit cards and popular cash back credit cards like the Citi® Double Cash Card.

    Even if your credit card info is compromised and your credit card company doesnt have a zero liability policy in place, your liability for credit card fraud is limited to $50 under the Fair Credit Billing Act.

    Still, it pays to be vigilant. As soon as you notice charges you dont recognize, call your credit card company. Theyll likely issue you a new card with a new card number and investigate the charges immediately.

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    How You Can Keep Your Personal Information Safe

    Make it difficult for criminals to get hold of your personal information.

    You should always:

    • Protect your computers and mobile devices. Use strong passwords and up-to-date virus checkers.

    • Make sure no one can see you enter your PIN when using your card in shops and using cash machines . If an ATM keeps your card, report it immediately.

    • Know who you’re buying from before you give your card details.

    • Check your balance and statements regularly. Tell us if you spot anything you don’t recognise.

    • Keep your contact details up to date.

    Don’t ever:

    • Choose personal details like your date of birth as your PIN or write it down.

    • Use a suspicious-looking ATM.

    • Try to remove a suspect device from an ATM. If you’re in doubt, tell the branch or police immediately.

    Helping Ensure Youre Not A Victim

    Because your digital DNA is everywhere, you should consider something to protect it. Discover offers you an option for protecting your identity and personally identifiable information: Discovers Identity Theft Protection. For a small monthly charge, this comprehensive service offers credit bureau, bank account, and Social Security number and risky website alerts, as well as email and text alerts and digital dashboard access. You can access up to $1M of Identity Theft Insurance for legal expenses, reimbursement of stolen funds, lost wages and more covered expenses and count on expert service from 100 percent U.S.-based fraud resolution specialists.

    Discovers Identity Theft Protection goes above and beyond what other similar products offer to provide credit balance, limit and utilization alerts when significant changes are reported to Experian, and verification alerts, when someone answers Experian verification questions to access or create an account in your name.

    Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

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    Set Up Virtual Account Numbers

    If your card issuer offers them, request a virtual credit card, which is good for a certain amount of time or for a particular merchant. That way if the number is compromised, the potential damage is minimized.

    If you are shopping in person, consider using a mobile wallet. If you put your card information on your mobile device, you can use that to make payments. An encryption system substitutes a one-time digital token for your card information.

    What Is Credit Card Fraud

    How to deal with credit card and debit card fraud

    in which criminals make purchases or obtain cash advances using a credit card account assigned to you. This can occur through one of your existing accounts, via theft of your physical credit card or your account numbers and PINs, or by means of new credit card accounts being opened in your name without your knowledge. Once they’re in, thieves then run up charges and stick you and your credit card company with the bill.

    Because card issuers are well-versed in dealing with card fraud, it’s unlikely that being defrauded will cost you money out-of-pocket over the long haul, but necessary investigations can take months and, as discussed at greater length below, unaddressed credit card fraud can do major damage to your credit reports and scores.

    Dealing with credit card fraud can cost you a great deal of time and aggravation, and the theft of hundreds of millions of dollars every year adds to the overall cost of using credit cards for all account holders.

    Credit card fraud is a form of a broader category of crime known as identity theft, by which criminals use your personal information to impersonate you and hijack your finances. In addition to credit card information, identity thieves can use credentials including your name, date of birth, address and Social Security number to take over bank accounts, take out loans in your name, and apply for bogus tax refunds, unemployment benefits and Social Security checkstaking advantage of benefits you’ve earned.

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    Notify The Credit Bureaus And Call The Police If Necessary

    Filing a police report is especially crucial if you see a pattern of fraudulent charges in the days following the first signs of suspicious activity. Sometimes credit card fraud can happen all at once, and other times it might be days or weeks apart.

    If you notice multiple credit cards or financial accounts being used without your knowledge, contact the major credit bureaus to alert them and request a . This can help stop criminals from doing further damage, like opening up a new credit card.

    After youve done that, call the police and file a report. If you notice a pattern of credit card fraud, the police can use your records to open an investigation.

    Remember: Serious identity theft could lead to more than a simple case of credit card fraud. For example, if someone steals your wallet, the thief could potentially use your credit, insurance and identification cards to open utility and credit accounts in your name.

    Identity theft should also be reported to the Federal Trade Commission. It can assist you in developing a recovery plan to prevent further loss and get things squared away with the police and credit bureaus as necessary.

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