Protecting Yourself from Credit Card Fraud. The likelihood of becoming a victim of credit fraud as a consumer or vendor is huge because the possible payout to the card scammers is so large and there are so many thousands of them, many in other countries. For most of these cases, you file a police report and an insurance claim; make a report to your credit card provider, PayPal, or bank; and then wait as these reports and claims are processed.
Protecting Yourself and Money from Credit Card Fraud, Rfid handbags
Your case gets added to the stats, you eventually get reversed after two or three months, and you get your money back, but in the meantime, you have the hassle of having to deal with reporting the fraud or making a claim and perhaps having some economic distress when your money is tied up in the claims process before you get it back.
According to a 2014 Economist article, “Skimming Off the Top,” the total global payout for credit card fraud losses was $11.3 billion in 2012, up 15 percent from 2011. And in 2014, this number was even higher a $16 billion global industry involved in credit card hack around the world. Moreover, the problem was even greater for consumers in the United States, the one country where counterfeit card hack is consistently growing it accounted for 47 percent of all types of fraudulent payment-card debt, according to the Nilson Report. The other big losers were card issuers, who lost $3.4 billion that year, while merchants lost another $1.9 billion.
If you haven’t yet been a credit card fraud victim, you might well be in the future, as researchers at the Aite Group, a research firm, and at ACI Worldwide, a payment-software firm, found in a 2012 survey that 42 percent of Americans had been victimized by some type of payment card fraud in the past five years.
One reason there is so much hack is that the United States has more credit cards than other countries. As of the end of 2013, Americans had 1.2 billion debit, credit, and prepaid cards, with each adult having an average of five cards each. And on average, individuals in high income households have even more.
There are a number of ways you can end up being a victim in a variety of scams. They vary in the specific way they are conducted, but they all end up with the common result he fraudsters get your physical cards or enough information about your card and you that they can use it to charge purchases or siphon money from your bank. Or they may get you to make a purchase, where you give up card information, and then they charge you and charge you for ongoing purchases or for more time on a subscription that you find it difficult to cancel.
The scenario they use to get your card and information or entice you to buy something may differ but the outcome is the same. You lose money. And so does the vendor, because it’s a phony charge. Plus, there may be more losses, depending on the scenario that leads you to use your credit card or give the fraudster your information.
A first step is to become aware of the different strategies the fraudsters use, so you can become suspicious when a person seems to be using these strategies on you.
And depending on circumstances, you can seek more information to see if your suspicions are confirmed or if the person is legit, you can walk away and not risk getting involved, or you can report the possible fraudster to the police if this is a local fraudster.