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Credit card theft is on the rise. As people do more and more shopping online, there are more risks to having your information compromised. It is not fun. In fact, it has happened to my husband and I.
Unfortunately, our number has been stolen around 2 or 3 times in the past couple of years. We have an amazing bank and the money is in our account within 24 to 48 hours, so we have not had an issue of being out our money or very long. The transactions have usually been$200 or less….until two weeks ago.
My husband logged in to check out something on our account and noticed a transaction to Joel Osteen Ministries for $1600. Upon further review, we noticed this same type of transaction 3 more times – all for around the same amount! We instantly called our bank and canceled the card and they started the process.
Around 36 hours later, we logged in again and saw that the money was in our account — a total of 5 transactions to the same payee totaling nearly $8000!!!! We were shocked. Then, when we stopped to think about it, we shook our heads.
How in the world steals money to donate to charity? Apparently, the person who stole to give to Joel Osteen missed the entire point of what he preaches. Isn’t that crazy?!!
There is no way for us to know how this information was stolen. It could have been phishing from a store, hacking through an online retailer or even the restaurant where we ate.
So, what can you do to try to prevent this from happening? There are a few things you might try.
PREVENTATIVE STEPS TO AVOID CREDIT CARD THEFT
Make sure you shop online only using secure sites. These will show the padlock icon on them when checking out or will have https in the link.
Try to pay with cash at restaurants or locations where they have to take your card out of your line of site to pay.
Never use public computers or Wifi to make purchases. Make sure you are using your own secure network. If you are logging into any accounts on those public computers, make sure you clear the passwords before you leave.
Do not shop at sites which may not appear to have good security. Just because they have that item for $5 less doesn’t mean it is a good deal if the site is not secure and your data can be hacked.
Monitor your credit report to make sure that you know the credit in your name and can find any possible fraudulent activity.
Log into your accounts regularly to check activity. One thing to watch for is SMALL transactions — usually less than $1.00. This is how many thieves check to make sure the card works without you noticing – as the amount is too small for most people to even notice.
Never click on links in e-mails from ANYONE asking you to confirm information. They may look legit, but these are hackers. If you receive an email advising you that you need to change a password or update settings, go directly to the site and never click on the link within the e-mail.
WHAT DO TO IF YOUR INFORMATION IS STOLEN
Even when you do everything the right way, your information can still be stolen. This was the case at Target when it’s network was compromised. It is just going to happen. So, if you find out that your card information is stolen, here is what you should do.
Stay calm. This can be easier said than done, but you need to keep your cool so that you can do everything you need to in order to rectify the situation.
Contact your financial institution (bank or credit card company). They will close the account and will usually go over past or pending transactions to make sure that there is no additional purchases that should be addressed.
You may also need to contact your local authorities (if the amount is large).
Contact all three credit reporting agencies – Experian, Equifax and TransUnion — so that fraud alerts can be set up to monitor your reports. If you find errors, take steps to fix them immediately.
It is always smart to take precautions when shopping online. Even if you do everything right, you can still be a victim. But now, you will know what to do should it happen to you.
The Federal Trade Commission (FTC) online at IdentityTheft.gov or call 1-877-438-4338. The three major credit reporting agencies. Ask them to place fraud alerts and a credit freeze on your accounts. The fraud department at your credit card issuers, bank, and other places where you have accounts.
In the event that your credit card is stolen in the United States, federal law limits the liability of cardholders to $50, regardless of the amount charged on the card by the unauthorized user.
How Do Banks Investigate Fraud? Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.
Under California law, you can report identity theft to your local police department. Ask the police to issue a police report of identity theft. Give the police as much information on the theft as possible.
For these, know that you can call your credit card issuer and have your spouse removed as an authorized user if you don't want them to charge to the account.
Federal penalties for using a "device" to commit fraud (the law defines a credit card as such a device) can include up to 20 years in prison, plus fines and forfeiture of personal assets.
You, the consumer, typically aren't liable for credit card fraud, but someone pays the tab. So who foots the bill when a thief uses your credit card or its number to illegally buy stuff? The short answer is it's typically the merchant where you bought something or the bank that issued the credit card.
Some estimates say less than 1% of credit card fraud is actually caught, while others say it could be higher but is impossible to know. The truth is that most credit card fraud does go undetected, which is a major reason why it's become a favorite among crime rings and fraudsters.
Yes. Tracking who used a credit card is often possible, especially if the fraud involved physical transactions at identifiable locations or digital transactions with traceable IP addresses and device information.
A credit freeze can help prevent identity thieves from opening new accounts in your name, but it does nothing to keep them from committing fraud with your existing accounts. That means fraudsters could make charges on a payment card in your wallet.
LifeLock's identity monitoring and alerts are similar to those of other identity theft protection options that are definitely worth it. However, the value and purpose of some of LifeLock's additional services are unclear (such as “fictitious identity monitoring”).
To cancel a pending transaction, call the merchant or retailer on your statement. If you suspect fraud, call your issuer or bank immediately. To avoid transaction errors and fraud, regularly review your statement and shop only with secure websites, among taking other precautions.
What should I do if there are unauthorized charges on my credit card account? Contact your bank right away. To limit your liability, it is important to notify the bank promptly upon discovering any unauthorized charge(s). You may notify the bank in person, by telephone, or in writing.
Penal Code 484g PC makes it a crime to use a credit card to obtain goods or services knowing the card is fake, forged, expired, or belongs to another person. The crime of fraudulently using somebody's credit or debit card is described under California Penal Code 484g.
To remove an authorized user, call the number on the back of your credit card to reach the card issuer's customer service number and request the authorized user to be removed from the account. Some credit card issuers may even allow you to remove an authorized user online or via the company's mobile app.
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Introduction: My name is Jamar Nader, I am a fine, shiny, colorful, bright, nice, perfect, curious person who loves writing and wants to share my knowledge and understanding with you.
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