What Should You Do If You Suspect Credit Card Fraud?

You are far from alone if you’ve fallen for a credit card scam. The FTA (Federal Trade Commission) shared that over 410,000 people reported credit account fraud last year, making credit fraud one of the most common forms of identity theft. Early detection and prompt action are the keys to lessening the damage of such insidious crimes.

 

Adopting certain smart habits and taking full advantage of tips from FraudTrac can help. You can shield yourself from many types of fraud if you know the right moves. Here are a few ways you can avoid becoming a victim altogether.

 

How To Tell If You’re a Victim of Credit Card Fraud?

Your credit card may indicate fraudulent activities if you feel your credit card has been used without your consent or knowledge. Sometimes people fall for phishing emails, swipe their card into credit card skimmers, or unknowingly fill in their information on a fraudulent website to make an online purchase. This may lead to credit card fraud, a form of identity theft where someone else uses your credit card information to make purchases without your permission.

 

No matter how the scam occurs, the consequences are the same: the hacker gets access to your personal and credit card information. They can use it to take out new lines of credit under your name or make purchases on existing credit cards.

 

Many people confuse this with credit card disputes. Not agreeing with how a company uses your card after you permitted them to use it will be classified as a credit card dispute, not a fraud. Even if the scammer persuaded you to buy something, as long as you authorized the purchase, it wouldn’t be counted as credit card fraud.

How to Deal with Credit Card Fraud?

Man canceling cards after reporting a credit card fraud online

 Contact the Credit Card Company

If you suspect credit card fraud, the first thing to do is to contact the issuer. In many cases, representatives from the company would contact you first via email or mobile alert to ask you if the recent charge looks familiar. Always report suspicious charges by contacting them on the hotline on your credit card.

 

The Fair Credit Billing Act highlights that all fraudulent charges must be reported within 60 days of receiving the suspicious charge’s billing statement. Review your monthly statements, check all the transactions posted on the online account, and report potentially duplicitous charges immediately.

#2- Update Your Pins, Passwords, and Mobile Wallet or Online Accounts

As soon as you suspect the credit account has been compromised, change all the passwords, especially the ones linked with the credit card in question.

 

Also, change the password of any accounts or websites on which the credit card information was stored. Consider implementing two-factor authentication on all your accounts to avoid repeated fraud.

 

When the credit card company cancels your current card to send you a new one, update all online accounts and mobile wallets, especially the ones with automatic payment setups. This way, the safety of your accounts will be optimized, and you won’t fall behind on bills or subscriptions.

#3- Set Up Mobile Alerts

Activating mobile alerts on your bank account helps you receive notifications whenever a charge is posted. You can immediately let the issuer know if the charge is fraudulent.

 

Moreover, setting up mobile alerts also acts as a great reminder of when your next payment is due. You’ll also know when your most recent account goes through, when your account reaches a particular balance, or when a purchase goes above a certain amount.

agent reviewing credit card fraud reports

#4- Freeze Credit Reports

While protecting the current credit accounts from fraud is crucial, it’s also important to ensure identity thieves don’t take out new lines of credit under your name. Freezing your credit reports is the best way to protect yourself from this kind of fraud.

 

Once your credit reports are frozen, anyone’s request for a new credit card or loan under your name will be declined. You can thaw the credit freeze whenever you need to shop for a mortgage, apply for a new credit card, or take out a personal loan.

#5- File A Scam Report Online Through Fraudtrac

Learning the signs and acting quickly to prevent fraud is important. Once you’re safe, help others by reporting credit card fraud online through FraudTrac. As an online scam tracker website, we strive to help people report online fraud and file scam reports to help others stay aware of malicious scams or fraudulent businesses.

 

You can report consumer fraud, pension, auto dealer fraud, malicious activities, and other scams to help others stay safe and alert. Partner with us on our journey toward fighting fraud together by filing a scam report online.

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