Why Should You Care About Credit Card Fraud?

Why Should You Care About Credit Card Fraud?

If you haven’t had your credit card information stolen or compromised by one of the many data breaches in the past few years, consider yourself lucky. According to the Identity Theft Resource Center, 14.2 million credit card numbers were exposed in 2017 alone.

Under federal law, your liability for unauthorized credit card charges is minimal. But there are a handful of reasons why you’ll want to be on high alert for credit card fraud, despite legal protections.

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How You’re Protected Under the Fair Credit Billing Act
The Fair Credit Billing Act states that if you uncover an unauthorized credit card charge on your account, your maximum liability is $50. To enact your liability rights, you must reach out to your creditor within 60 days of the statement date to report the fraudulent charge.

Your creditor is legally required to acknowledge your complaint within 30 days of receiving it. The law then requires your creditor to resolve your complaint within two billing cycles from the date it was first notified of the unauthorized charge.

Additionally, many of the major credit card networks in the U.S., including Visa, Mastercard, American Express and Discover, offer zero liability protection in the event of credit card fraud.

3 Reasons You Should Care About Credit Card Fraud
With federal and card network protections in place, taking precautions against fraud may not seem like a priority. But experiencing credit card fraud can put you at risk of further fraud and even identity theft.

“Fraudsters buy card data on the dark web and then use it to run fraudulent transactions at retailers, restaurants or online at e-commerce websites,” says Ruston Miles, founder and chief strategy officer of Bluefin Payment Systems, a payment encryption platform. Here are some ways credit card fraud can still negatively impact you.

Credit card fraud exposes you to identity theft. Sometimes, credit card fraud is confused with identity theft. In fact, credit card fraud covers only unauthorized charges on an existing account. Identity theft is a broader, more problematic issue if left unchecked.

Personally identifiable information – like your credit card numbers, Social Security number, driver’s license number, and health and financial records – are the kind of data that’s sold on the dark web and can open the door to identity theft and account takeovers….Read More>>

Source: usnews

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