Don't let this credit card fraud nightmare happen to you

The Federal Trade Commission's most recent database indicates that 416,582 cases of credit card fraud were reported in 2024, making it one of the most common forms of identity theft. You know you've been a victim of this fraud when you notice unauthorized transactions on your credit card bill. 

These transactions are usually below $100 to avoid detection. However, sometimes they can exceed $1,000. One such incident happened with Martin from Martinsville, Virginia, when he was randomly charged $1,095 in Hong Kong.

I'm sorry to hear about the fraudulent charge on your credit card, Martin. It's good that your credit card company is handling it and that you're not responsible for the charges. For future reference, I'll be discussing how this could have happened and how to stay safe.

The typical unauthorized transaction is around $100, which adds up to approximately $5 billion in criminal purchases each year. Interestingly, most unauthorized transactions involve credit cards that weren't physically lost or stolen, highlighting the growing risks of online fraud and data breaches.

If these systems aren't properly secured, hackers can grab things like credit card numbers, expiration dates and sometimes even security codes. Once they have that info, they can either use it themselves or sell it to others.

This is why identity theft monitoring is so important. Identity theft companies can monitor personal information like your Social Security number, phone number and email address and alert you if it is being sold on the dark web or being used to open an account.  They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. 

1. Notify your credit card issuer immediately: If you notice fraudulent charges on your credit card, start by calling the number on the back of your credit card. From there, you should get more detailed information on what to do next.

2. Monitor your statements regularly: One of the best ways to catch credit card fraud early is to keep an eye on your statements. Review your transactions regularly to spot any unfamiliar charges. The sooner you notice something suspicious, the quicker you can report it to your credit card company and prevent further damage.

3. Regularly check your credit report: In addition to monitoring your credit card statements, periodically review your credit report to catch any unauthorized accounts opened in your name.

5. Use credit card alerts: Set up transaction alerts with your credit card company. This way, you'll receive a notification via email or text for every transaction made with your card. If you receive an alert for a purchase you didn't make, you can take immediate action to report it and prevent further charges.

7. Don't store credit card info on browsers and websites: Storing your credit card information on browsers or websites can make it convenient, but it also exposes you to a higher risk of fraud. If your browser or the website's security gets compromised, hackers could gain access to your saved card details. To stay safe, avoid saving your credit card information and manually enter it each time you make a purchase. If a site offers to save your details for future use, think twice before accepting. It's better to take the extra step to enter your information each time, ensuring your data stays secure.

8. Use EMV chip technology: When making in-person purchases, always use the chip reader instead of swiping your card. Chip technology provides an extra layer of security against fraud.

10. Keep your card in sight: When using your card in restaurants or stores, try to keep it within view. This reduces the risk of someone copying your card details.

It's clear that credit card fraud is more prevalent than ever, affecting millions of Americans each year. The good news is that there are effective steps to protect yourself from becoming a victim. By staying vigilant and employing best practices - like monitoring your statements and using strong passwords - you can significantly reduce your risk. Remember, awareness and proactive measures are your best defenses against credit card fraud.

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