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Credit card fraud is a huge problem in the United States, as well as world wide. With e-commerce becoming more and more common, we will continue to see credit card fraud rise.
Here are some important facts about credit card fraud:
Credit card fraud is a result of identity fraud and a type of identity theft. It happens when someone uses your credit card or credit account to make a purchase. How can this happen?
Ways that someone can get your information to commit credit card fraud
Online shopping now accounts for the greatest fraud opportunity - the security of the EMV credit cards (chip & PIN) are driving more fraudulent activity to online or e-commerce sources.
Card not present fraud is now 81% more likely than point-of-sale fraud according to Javelin Strategy.
Because of federal law & issuer card network policy, consumers are shielded from liability for unauthorized purchases made with their credit cards.
Financial institutions and merchants assume responsibility for most of the money lost as a result of fraud. Card issuer losses occur mainly at the point of sale from counterfeit cards, while CNP transactions accounted for most of the merchant losses.
In 2015, card issuers bore 72% share of losses. Merchants & ATM acquirers assumed 28% of liability (Nilson Report, October 2016).
$24.26 Billion was lost in 2018 due to payment card fraud worldwide.
Identity theft happens when someone uses information about you: name, birthday, social security number, credit card accounts, etc. to take over your accounts or open new ones under your name. Credit card fraud is a type of identity theft.
Here are some statistics about identity theft:
Credit card fraud is the #1 type of identity theft and accounts for 35.4% of all identity theft reports.
Scammers & thieves can get your personal information via scams, theft, & data breaches. They use your personal information (Birthday, Social Security number, address) to take over your existing credit accounts or open new accounts and charge it to you and your credit.
Yahoo's data breach in 2013 compromised 3 billion people in total is still the biggest single data breach
First American Financial Corp. had 900 Million customer files exposed in May 2019
Facebook - 2019- 540 million users’ data exposed
The biggest breach in 2018 was by Marriott International which exposed as much as 500 Million records
Adult Friend Finder in 2016 had 412 Million records compromised
Equifax in 2017 had 143 Million records exposed
Capital One in 2019 had more than 100 Million records which could have been compromised
Consumers need to be vigilant & wise when giving their personal account information. Scams come from a variety of different sources. According to the consumer sentinel network 2018, most of the consumers who were affected by fraud were contacted by scammers via phone and that $429 million were lost due to fraud by this method of contact.
Credit card fraud, identity theft, and cyber crime will continue to be a problem. It is wise to monitor your credit card and bank accounts frequently. Keep your cards and purse or wallet secure. Never carry your social security card. When shopping online, make sure you are shopping from reputable websites.
If you suspect fraud, you can request a credit report, as new accounts will often show up there first. If you find one, contact the credit bureau directly to report it.
Be sure to notify the credit card companies and banks immediately of any suspicious activity, or if you know your card has been lost or stolen. Change your online PINs and passwords.
If you are a victim of credit card fraud, consider filing a police report. You can also report the crime to the Federal Trade Commission - which track identity theft and fraud reports.
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