Types of Credit Card Fraud

"Credit card fraud is the use of plastic cards (including credit, debit, and stored value cards) to withdraw cash, make purchases, or otherwise use the card without the owner's permission." Australian Crime Commission.

This type of fraud is by far the most common (as compared with debt or stored value) and the most recent methods are described below:

Application fraud: Application fraud occurs when a person's identify is stolen and a credit card is obtained in that name. The fraudsters can simply sign it and use it until the limit is reached. The unsuspecting owner becomes unknowingly liable for the debt.

Card not present fraud: The fraudsters discovers the details on the card and uses it in places where a signature, PIN or cards are not required, such as online purchases.

Not received fraud: Not received fraud describes the situation where the owner of the card does not receive it. The fraudsters steals it from the post or home and uses it in a similar way as the card not present fraud.

Counterfeit card fraud: Technology exists where he details of a credit card can be easily copied. The fraudsters simply uses the copy as if it were the real one. Credit card details are stolen and sold to fraudsters.

As the methods indicate, use of cards online in a fraudulent manner is increasing. Staying vigilant about these methods is necessary to avoid disappointment.

What do you do if you suspect fraudulent behavior?

Check your statement online regularly. Report it immediately to the provider. They will most likely put a hold on the card until the matter is resolved.

Minimize the impact of some of the frauds by insisting on the lowest possible limit.

If your credit cards are stolen, anywhere in the world, report immediately to your card provider. They have phone numbers available 24/7. Again, they will most likely put a hold on it. Always travel with at least one other option for cash and keep it in a separate place.

Look out for other payment options. You may not even need a card to carry on your lifestyle!

The credit card is a wonderful invention and a tool of convenience, particularly for the online shopper and traveler. However, it is prudent to take precautions to minimize the risks associated with the theft of the card. Most people take it lightly but ask someone who has experienced credit card fraud and they will encourage everyone to be vigilant.

Source by David Nivala

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