Globally credit card fraud costs card issuers billions of dollars a year in fraudulent use of their cards. Some of this loss is passed back to retailers who failed to comply with the normal processing method for the card. Another part of the loss is insured. Nonetheless, as a cardholder you are potentially liable for any fraudulent use of your credit card. It is, therefore, imperative that you make yourself aware of what the current fraud scams are and how you can help to in the battle of credit card fraud prevention.
To this end, the following are some fraud prevention methods you can adopt:
* when using your card, never card out of your sight
* if you use the card in an old carbon-copy paper machine, keep the carbon-copy and destroy it later
* never use your credit card on an unsecured website
* never use your credit card to withdraw money in an ATM
Aside from the above, ensuring that you use certain technological advances with your credit card should also help in any credit card fraud prevention. In this regard, the following are currently popular with card issuers:
* identification photos: where your picture is shown on the front of the card
* fingerprinting: where a facsimile of your fingerprint is shown on the reverse of your card;
* chip and Pin systems: where the card has an encrypted chip containing details about the card and a PIN that ensures the card is a genuine issue. Essentially the chip contains the same information that used to be contained in the magnetic strip on the reverse of the card, but in chip format it is believed to be harder to copy.
Although each of these systems is no foolproof credit card fraud prevention method, with credit card fraud costing more and more each year, you can bet that issuers are going to be tackling this issue head-on: so stay aware of the latest credit card fraud preventions methods and help combat this growing problem.
Credit Card Fraud How
Making purchases on the Internet seems quick and easy but has its risks. One of the biggest risks to you is credit card fraud and identity theft. Protecting yourself against credit card fraud can be very straightforward, and at relatively little cost. First and foremost, if you experience credit card fraud, it is imperative that you contact your credit card issuer immediately. You will find a 24-hour emergency contact number printed on every statement. As soon as the instance has been reported, your card will be cancelled and a new one sent to you within 5 to 10 working days.
Every cardholder should always take the following easy steps to avoid fraud:
* Keep your personal records secret: Never tell anybody or write down your PIN number or passwords. If you have difficulty remembering the number choose an easily remembered number, which isn't your birthday. * Cover your tracks: Always destroy and shred whenever possible. * Get extra protection: Mastercard and Visa offer a registration scheme, which is a free service. Once registered you will have to enter an additional password for online transactions. * Protect your PC: Make sure you have up to date anti virus and firewall software installed. A 'phishing filter' will protect from fraudsters who attempt to acquire your account numbers and passwords. * Beware of cold callers. * Never email your financial details to anybody. * Be cautious in shops to: Always use your spare hand to cover your other hand whilst entering your PIN in the machine. The same applies at cashpoints too. * Be vigilant: Always check your credit card statements. You should always file and keep all credit card statements. * Cover yourself: Think about taking out additional Identity Theft Cover with your bank or credit card supplier.
Identity theft can ruin your life, even if you are extremely careful. The fraudsters are able to use ever more sophisticated techniques to get your personal details. They can steal your identity and then use it to get loans and even mortgages without your knowledge. These loans will be in your name, and when (not if) defaulted on, will leave you with a big debt. Some credit cards have insurance schemes that protect against such occurrences, usually costing a small amount per month. These may be worth thinking about, especially if you travel a lot (putting you more at risk), or use your credit card often.
'Identity Theft Cover' will cover you and help you to prevent, detect and defend against the theft of your good name. It can take up to 400 hours to clear your name through all the individual credit agencies. However, with cover, this would be entirely dealt with by their team of experts on your behalf. It is possible in the worst cases of identity theft that your bank accounts become frozen pending investigations. Some policies would provide you with adequate funds in this eventuality and cover your legal fees. This type of cover may also offer: * UK-based helplines * Identity theft prevention information * Secure document registration facility: Have all your credit cards listed - so that one phone call can freeze them all * Real time credit reports: email or text message alerts you to any change in your credit status * A case specialist assigned to you if you become a victim * Cover for legal expenses and other costs
If you are cautious and take all the recommended steps to protect yourself, you will be sure of protecting yourself against credit card fraud and identity theft. Think carefully before choosing your credit card and find one that will cover you against fraud. Even if this seems like one more added expense, it could end up saving you thousands of pounds and a great deal of stress and worry.
Both Joe Kenny & Jane Adshead are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Joe Kenny has sinced written about articles on various topics from Mortgage, Credit Cards and Life Insurance. Joseph Kenny writes for the Loans Store and offer more information on. Joe Kenny's top article generates over 49500 views. Bookmark Joe Kenny to your Favourites.
Jane Adshead has sinced written about articles on various topics from Credit Card Fraud. Felicity Gardener has her finger on the pulse of Credit Card Fraud prevention and protection. Read her excellent report which will help you foil fraudsters. Jane Adshead's top article generates over 5400 views. Bookmark Jane Adshead to your Favourites.
Check First Cash Advance In those cases we refer them to credit counseling to help them with better money management solutions.