Credit card scams and fraud are on the rise and it’s getting easier than ever for scammers to steal our info. Today, we discuss the risks, and how credit card users can protect themselves from criminals.
Plastic Targets
Credit cards are convenient, they make everyday activities easy. Shopping on Amazon, buying groceries, monthly subscriptions like Netflix and Spotify. Even mobile payments use our credit cards. And all of this is without having to take out or carry around cash.
Credit cards have become even more convenient in recent years with purchases no longer requiring signatures.
Unfortunately, this convenience makes credit cards ideal targets for hackers and scammers. Fraudsters can use stolen credit card info to make purchases or skim money anonymously. Done right, it can be difficult to detect and harder to track down the criminal.
How Easy It Is For Credit Card Fraud To Take Place
The techniques for credit card fraud are always evolving, leaving businesses and police struggling to keep up. Simply making a purchase with a legitimate business’ credit card reader can put you at risk.
This occurs through a technique known as credit card skimming. The criminal attaches a device to a legitimate payment terminal. The device is difficult to detect and it captures your credit card data while you pay. Later they use that information to duplicate your card for their own use.
Since the payment still goes through, neither purchaser nor vendor knows the fraud is occurring.
This video demonstrates just how easy credit card skimming is:
Credit Card Fraud Stats
Credit card fraud is more prevalent in the United States than anywhere else in the world. The US is responsible for 47% of all card fraud around the world, even though it only accounts for 24% of cards. With card fraud such a major issue in the USA, we take a look at some more stats:
- Credit card fraud is on the rise. Fraud instances tripled from 2013 to 2014 and are still climbing.
- Card fraud affects people of all ages. Of reported instances to the FTC, 36% of victims are between 20-39; 38% are 40-59; and 26% are 60+ years old.
- You may not know you’re a victim until it’s too late. 22% of students only discovered they were victims of credit card fraud after being denied credit or receiving calls from debt collectors.
- About 1 in 5 Americans who are active online have had their personal information stolen according to the PEW Research Center.
How To Protect Your Card From Fraud
Don’t be a victim. By taking some simple precautions you can help protect yourself from credit card fraud.
Detecting Credit Card Skimmers
For scams like the credit card skimming technique in the video, a little vigilance is all you need. When using an ATM machine or paying for gas at the pump, try wiggling the card slot. The card skimmer is usually a loose fit and you can wiggle it or remove it.
If you find one, report it to the business and to the police. Not only might you help catch the thief, but you could help save people who used the terminal before you from becoming victims.
At merchant terminals pay attention to the card reader, if it’s especially tight it may be skimming your information. As well, keep an eye on the card if you have to hand it to the vendor.
Destroy Cards & Documents
“Dumpster diving” is a low-tech but effective credit card fraud technique. Potential fraudsters go through your garbage to steal your credit card information. Shred all documentation before disposing and be sure to cut up and old cards you throw out.
Check Your Statements Regularly
Check your credit card statements on a regular basis. Save receipts and make sure they match up. Investigate any payments that don’t look natural, or recurring payments you don’t recognize.
Report Suspected Fraud or Lost Cards
If you lose a card or suspect you are a victim of fraud contact the credit card company ASAP! Most companies have 24-hour toll-free numbers. An early report can put a stop to fraudulent activities and may save you from paying off expensive purchases by the fraudster.
Are you a victim of identity theft? Learn what you need to know about whether or not to do to a credit freeze.