Don’t Fall Victim to Credit Card Scams: Tips for Prevention and Recovery

Credit card scams are one of those where people are defrauded. According to the report, nearly 400,000 Americans faced credit card fraud in 2021. So if you have fallen victim, you are not alone. The credit card market is huge, and scammers aim to bag a good amount of money on a daily basis. 

As people over the age of 55 or 60 rarely use credit cards, con artists are focusing on the younger generation. Even though people are aware of these scams, they still fall victim because con artists pose as charlatans or use cyberattacks to steal all of the information. 

You should be aware of these attacks too. You can save your loved ones and yourself if you are well informed about these scams and how to avoid them. Later in the article, we will go over the different types of credit card attacks, how to avoid them, and how to recover your money if you are a victim of credit card fraud.

Credit Card Frauds

Before getting into the types of credit card fraud, let’s first understand what credit card fraud is. Credit card scams are one type of identity theft. The con artist steals your credit card or your personal information and makes purchases in your name. Scammers generally steal physical cards, account numbers, and PINs, or open new accounts in your name. 

They will try to access your account anyway, and if they are in, they will bill you and your credit card company. They can hold you liable for thousands of dollars while you are unaware. There are some acts to protect the consumer, like the Fair Credit Billing Act. This act will protect the consumer from liabilities for allowed transactions exceeding $50. There are even some issuers that offer zero dollar liability, but the amount of time consumed in this process is immense. There are other ways to deal with credit card fraud, but first let’s look at the different types of credit card fraud.

Types of credit card fraud

Physical Card Theft

Physical card theft is one of the more traditional methods; the thief will either get your card by stealing your wallet or by stealing it from a restaurant or another public area. They even steal your credit card from the mailbox. Report it immediately to the issuer if your card goes missing.

Clone

Cloning of the credit card is done by getting your card information from the devices that fit over the ATMs or gas pumps. When you do a transaction, your card details are gathered on that device, called a “skimmer.” For the EMV cards, which are chip cards, the scammers used the shimming process to clone the card. So it is better to check the machine before using it.

Carding or Cyber Attacks 

Carding is the process by which scammers obtain or purchase credit card information from the dark web and use it fraudulently. They will not have the physical card, but the details are enough for them to misuse it and bill you. They just need your name, your account number, and your PIN. The scammer hacks multiple accounts at the same time and wipes out all of the cash from all of the accounts.

Phishing Scams 

Phishing scams are also one of the traditional methods. In this scam, the information is provided by the victim because the scammer poses as an agent from the bank or an insurance agent. As the caller seems so legitimate, the victim provides all the information on the call, and within a couple of seconds, the account is empty.

It’s better to stay away from these scams; even the scammers will email. Their email will contain some links that will direct you to a phony website. Always make sure that all of your transactions are made through legitimate portals.

Account Takeover 

In account takeover, the con artist will contact your issuers, pretending to be you, and will use your personal details to lock you out. The thief will change all of the access PINs and recovery addresses, making it impossible for you to recover them. By the time you know about this issue, it will be too late, and you will be locked out.

Issuers are using verbal passwords to resolve this issue; even emailing or sending SMS on every change is one way to avoid account takeover scams.

Prevention from Credit Card Fraud

Check Credit Report

Reviewing your credit report on a regular basis is good practice. If you observe any unusual entries or inquiries, immediately report it to the issuer. The creditor will provide you more details on this matter. You can later file a complaint and investigate more. Even if you believe that your report is inaccurate, you can raise a dispute. 

Check Statement 

Just like you review your credit report, it is highly recommended that you review your statements on a regular basis. You can get monthly statements, and through statements, you can easily get an idea of unexpected purchases (if any). This will help you get through the problem at an earlier stage. 

Calling Scams

Calling scams are one of the most widely practiced scams. Numerous businesses are established globally based on phone scams. People receive calls from the scammers asking them to verify their bank or card details, or they will terminate their account in an hour or so. They rush them to share their details. 

When you’re called and the person asking you to provide your bank details or card details just hung up the phone, the bank will never call you and ask you for your card number or PIN; they already have all the information, which you can later cross check by calling the organization on the official number. 

Credit Monitoring

You can enroll in credit monitoring, and if any suspicious activity is spotted, they will directly notify you. There are plans like identity theft protection that can help you keep track of your account. 

How do I recover from credit card fraud?

• Contact the credit card issuer

If someone has defrauded you, immediately contact your credit card issuer. They will assist you with the matter and issue you a new card. They will further investigate and track the imposter down

• Change the passwords.

When you observe any fraudulent activity, change your password immediately. There are chances that the con artist can lock you out.

• Credit Bureaus 

When you suspect any fraudulent activity, you can contact the credit bureaus to be on the safe side. You can request a credit freeze; after that, the thief cannot take out any amount from your credit card and can’t create any account in your name.

• Shopping accounts 

If you notice any suspicious activity going on with your credit card, first remove your credit card from your shopping account. If your shopping accounts are not secure, your account information may be leaked as a result.

• Statements

Check your credit card statement on a monthly basis; after fraud, it will take longer to appear on your statement. So if any fraud happens, you can track it down quickly.

Cessation 

Winding up the article, I hope this article helped you. If you become a victim of such scams, don’t hesitate to immediately inform the credit bureau agencies and the law enforcement authority. It will take some time, but they will assist you until you recover your funds. Even some recovery firms can help you recover your funds.