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Credit Card: Fraud Prevention
by B Malkin
Category : Finance |
With the internet shopping market booming, internet makes our lives easier to manage and the real-time information that is available has become a part of our daily lives. We have lost our fear of using the Internet for purchases using our credit cards. Today it seems good credit card can buy you almost anything. Protecting your personal identity and using credit card wisely is essential to keeping your finances balanced. Although the general awareness of credit card crime has risen, and people are taking more care when purchasing, these figures are still highly worrying. Credit card fraud is general term for theft and fraud that is committed using a credit card as a fraudulent source of funds to complete a sales transaction. While theft is the most obvious form of fraud, it can occur in other ways. It can be one of the most stressful positions you can find yourself in today.
Result of credit card fraud costs billions of dollars every year. Altogether, credit card fraud costs cardholders and credit card issuers as much as $500 million each year. Credit card fraud is divided into five categories:
- Counterfeit credit card - Makes up 37%
- Lost or Stolen Cards - Makes up 23%
- No-Card Fraud - Makes up 10%
- Non-Receipt Fraud - Makes up 7%
- Identity Theft Fraud - Makes up 4%
The fraud begins when either the physical card is stolen or the data associated with the account is compromised. This information includes the card account number or other information that would be available to a merchant during a legitimate transaction. Everybody knows the raw basics of credit card fraud prevention. But these measures do not eradicate any risk. Any purchase you make where you are not paying in person can be risky, and you should keep on your toes. By keeping an eye on certain factors when buying using credit card, we can reduce our chances of our details falling into the wrong hands.
Sign your credit cards when they arrive. Or better yet, write "check ID" in the signature line and it reminds the retailer to ask for ID whenever anyone, including you, uses the card. This way to use the card requires a photo ID. They should always ask anyway, though they may get too busy or forget.
Don't always trust the cashier at the counter with your card. Always watch the cashier closely during any card transaction and get it back as quickly as possible. Destroy any carbons that may have been made for receipts. People tend to think just because you're standing 2 feet away from them they won't attempt to rip you off right in front of your face.
When you use your credit card online, make SURE the site you use is highly encrypted. All reputable websites use this encryption; there is No reason not to. If needed, use virtual credit card. Virtual credit card also known as controlled payment numbers, have been available for use for quite some time now. Company such as Paypal has this feature. All you need to do is to enter your actual credit card number in this software and make up a number that isn't your actual card number every time you make online purchase. This masks the real card number to the online merchant.
4 or 5 digits punched into a card machine with wide buttons are not a difficult sequence for one to remember. Neither is swiping your wallet or handbag from you holding your credit card after they know your PIN.
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