Have you noticed unknown transactions on your credit card bill? Or have you received a call out of the blue suggesting your application for a credit card has been approved? If that’s the case, you might have become a victim of credit card fraud. Not acting on it can hurt your credit ratings and deny you from getting loans or even using your credit cards in the future. The best way to deal with the process is to hire a credit card fraud attorney. Credit card fraud lawyers are seasoned experts who can help you ensure your credit ratings are not damaged and stop your card from being misused further.
What Is Credit Card Fraud?
A credit card fraud is when your credit card is to make transactions that you did not authorize. This can happen in different ways:
- When your credit card gets stolen or you lose your credit card and it used to make unauthorized transactions either online or in-person
- Fraudsters get hold of your credit card number, PIN, and other security information and use it to make unauthorized transactions
- Your identity is stolen and the fraudsters file a credit card application to get a card in your name and use it to carry out unauthorized transactions
Technological advancements and the use of online platforms to make financial transactions have sped up credit card frauds across the US. Every year credit card frauds cost merchants and consumers over US$ 1 billion. Therefore, you must know the different ways fraudsters may use to obtain your information.
Types of Credit Card Frauds
Credit card frauds can be broadly divided into two categories:
These types of frauds are committed when the fraudsters get hold of your physical credit card. Some common types of card-present frauds committed are:
- Credit Card Stealing: One of the most common techniques employed by fraudsters is credit card stealing. These fraudsters are a master of the art of stealing and can easily slip your credit card out from your wallet or purse when you are not looking
- Lost Credit Cards: Accidents are bound to happen and you may lose your credit card. At times, your credit cards can end up in the wrong hands and can be used by fraudsters.
- Intercepted Mailed Credit Cards: Although rare, fraudsters have been able to intercept and steal mailed credit cards before they reach you and use it for their own means.
These types of frauds are committed without the fraudster physically getting hold of your card. In these instances, fraudsters get hold of your personal information and use it to defraud card issuers. Some common types of card-not-present frauds are:
- Counterfeit Cards: Fraudsters can clone your cards through devices known as skimmers. These are attached to credit card machines and are used to clone cards. Although chip-and-pin technology has reduced card cloning, fraudsters can still at times manage to overcome the obstacles.
- Account Takeover: This type of fraud occurs when miscreants can get hold of your personal information and use it to change your billing address. They then report the credit card stolen or lost and obtain a new one to make fraudulent purchases with it.
- Fraudulent Applications: In this type of credit card fraud your personal information such as name, social security number, birth date is used by fraudsters to apply and obtain a credit card in your name.
Identifying Credit Card Fraud
You must identify credit card frauds and nip the problem in the bud before it gets out of hand. Fortunately, some signs can help you identify these frauds. If you notice any of the following you may have fallen victim to a credit card fraud:
- Unfamiliar transactions on your credit card bill statement
- Bills for credit card accounts you have not opened
- Calls from collection agencies for credit card bills accounts you do not own
- Mention of new billing addresses, unfamiliar inquiries, or new accounts you have no idea about
What to Do if You Are a Victim of Credit Card Fraud?
If you come across any of the aforementioned signs and discover someone has made unauthorized transactions using your credit card, you should:
- Contact Credit Card Issuer: The first thing you should do is inform the card issuer about the unauthorized activity for your card. Although credit card companies are on constant surveillance for such incidents, they might miss out on certain activities. Your intimation will direct them to investigate the activity.
- Immediately Change Your Account Passwords: Changing your account passwords will restrict the fraudsters from doing any further damage
- Monitor Your Account Activity: Closely monitor your credit reports and account activity. This will enable you to understand the source from where your information was compromised
- Keep a Close Eye on Your Bank Account: Monitor your bank account activity and notify fraud if you notice anything suspicious
Liability for Unauthorized Transactions
If you are or have been a victim of credit card fraud, you may be worried about who is liable for paying for unauthorized transactions. The Fair Credit Billing Act defines conditions that decide how liability is decided in credit card frauds. Liability is decided based on whether your credit card was physically presented for the unauthorized transactions or your information was stolen for the fraud.
- If your card was physically presented for the transactions then the credit card issuer cannot hold you liable for any more than US$ 50 in fraudulent charges.
- If your information was stolen for making the fraudulent transactions then you have no liability
Why Hire a Credit Card Fraud Attorney?
Hiring a credit card fraud attorney will benefit you in the following ways:
- Credit card fraud can hurt your credit ratings. A credit card fraud lawyer will help you repair your credit ratings and co-ordinate with credit agencies to ensure all the fraudulent charges are removed from your credit reports.
- Credit card fraud may have been a by-product of identity theft. If that is the case a credit card fraud attorney will help you identify the source where your information was compromised
- Credit card fraud attorneys will help you identify the parties you can hold accountable and sue for your stolen identity
- A credit card fraud lawyer will also help you recover compensation for your stolen identity and ensure your personal information is safe
Have you been a victim of credit card fraud recently? Hiring a credit card fraud attorney will ensure you are compensated, protected, and your credit ratings do not suffer. Fill in the form alongside and we will help you find the best credit card fraud lawyer to help you with your case.