When looking for the credit card fraud definition you will find a lot of information. Simply put, credit card fraud is a broad term to define fraud and theft that is committed and involves using either a debit card or a credit card as a source of funds for a fraudulent transaction.
The purpose of credit card fraud could be to get things without paying for them or to obtain money from an account. Credit card fraud also ties into identity theft. The rate of identity theft in the United States has been steady during the mid-2000s.
However, in the year 2008, the rate of identity theft went up by 21 percent. However, credit card fraud, which is the crime often associated with identity theft, went down as a percentage of all identity theft complaints for the past six years.
The payment industry has been hard at work creating new ways to combat fraudsters as a way to create a more secure environment for financial transactions. From using holograms to providing a tamper evident signature panel, to cvc numbers, as well as an EMV chip, many of these security features are now a standard in the industry.
Even with all of the security measures that have been put in place, credit card fraud still occurs. There are eight types of fraud that are associated with credit and debit card transactions. These are:
When dealing with credit card fraud it is important to note there is credit card fraud protection in place for consumers. This zero liability policy means that a consumer is not responsible for any fraudulent activity that takes place using their cards.
If you have ever been involved in a credit card fraud case, you may have wondered how your bank detected the fraudulent activity. The simple answer is that credit card companies use a process of analyzing each of your credit card transactions.
This analysis recognize your patterns of spending behavior. Using this information it is easy for the credit card companies in order to pick out transactions that could be fraud. To put it simply, you are being tracked by your credit card. Each purchase that you make is used to create an individual spending profile and this profile is what is used in order to detect fraud.
A break in your spending pattern is the easiest way for a credit card company to recognize fraudulent activity. For example, if you live in Indianapolis, Indiana and suddenly your card is being used by someone on Charlotte, North Carolina, it may imply that there is possible fraud.
The charges to your card may be declined and you may need to verify them if it is indeed you who are using the card.
Some of the information used in these patterns include:
There is a lot about fraud protection that we are simply not told about and the reason for this is because the less information about protection and fraud detection that is available, the more successful the credit card companies will be in catching any fraudulent attempts.
When it comes to credit card fraud prevention there are several steps that you can incorporate into your daily routines in order to help keep your accounts and card numbers safe. To start, keep a record of all your account numbers as well as their expiration dates and a phone number to report fraud.
You should also never lend your card to anyone and never leave statements or receipts lying around. When you do not need these documents make sure that they are shredded before you throw them away.
Other practices to include in your fraud protection plan include:
If your card has been stolen or lost, make sure that you contact the credit card issuer as soon as you realize it. When you report the theft or loss the law states that you are not responsible for any charges that you did not make. If you believe that your card was illegally used you may need to sign a statement under oath that you did not make the purchases being questioned.
Laws against credit card fraud have established criminal penalties for the unauthorized or deceptive use of another person’s credit card accounts to steal services, money, or goods. These laws are enforced by several agencies including local police departments all the way up to the secret service.
There are new schemes being developed all the time to evade law enforcement, but the most common crimes involving credit card theft are either card present crimes, where a physical card has been stolen. This also includes attempts to get new cards in another person’s name.
All other types of credit card fraud are card not present crimes. This is where the thief does not have access to the actual card. This type of fraud occurs when a card number is used and the card is not actually swiped during the point of sale. These are the most difficult types of fraud to detect.
When laws are drafted regarding credit card fraud, typically there is not an attempt to identify and specifically prohibit all potential types of schemes. Instead, these laws are often written in a way using general terms to encompass many types of fraudulent behavior.
The penalties for these crimes is often based on the amount of money or the value of the items that are obtained during the fraudulent activity.
For example, one state statute may consider credit card fraud a misdemeanor if the amount does not exceed $500. This crime would carry up to one year in the county jail and around a $1000 fine. As the amount of the property value increases, the penalty for the crime increases as well.
When property of significant value is obtained, a felony credit card fraud crime can be punishable by up to fifteen years in prison as well as a $25,000 fine.
Credit card fraud is a serious epidemic and it is something that everyone needs to be aware of. When using your credit or debit card at any time it is important to make sure that you are vigilant about keeping track of all of the purchases that you make.
Obtaining receipts and comparing your purchases to your credit card statement is a good way to make sure that you are not being charged for things that you did not purchase.
Credit card companies have been working hard throughout the years to come up with different security features to help stave off credit card fraud attempts. These security features are just one of the ways that a consumer’s account is protected. In addition, there are policies in place to protect a consumer from any fraudulent activity that is found on their account.
While the credit card companies have put certain measures in place, it is important to take your own precautions as well. Never share your card information with anyone and when making a payment over the phone or online make sure that the payment site is secure and that you have called the company that you are making a phone payment to.
Only make payments on trusted and secured lines.
If you do notice any fraudulent activity on your card, make sure that you contact your credit card company or bank as soon as possible. It is important to take care of any suspicious behavior as soon as possible so that you do not end up losing even more money.
While you are protected from having to pay for any charges that you did not make, it is important to get the problem taken care of as soon as possible.