Although stolen credit card numbers won’t cost you anything, they can be a huge problem. Therefore, it is important to take steps to prevent fraud.
Most credit cards offer zero liability policies, and federal law limits your liability to a maximum of $50 for fraud reported within 60 days. Therefore, the bank is more of a financial victim than you.
The headache for consumers is finding and reporting stolen credit card numbers, waiting for new cards to arrive, and reviewing auto-pay bills associated with stolen card numbers. And for some, there is an emotional element. It feels like one’s privacy has been invaded.
While you won’t be able to avoid all credit card fraud, you can limit your vulnerability and avoid hassles.
Beware of ‘phishing’
Definition: Phishing is a scam that tricks consumers into revealing personal information, including credit card numbers. This can be done by email, phone, text or post. Phishers sometimes use well-known logos and company names to gain trust.
Fraud prevention: In general, be careful not to ask for personal information, regardless of the source. Please independently verify the legitimacy of anyone requesting your credit card number.
Identify ‘skimming’
Definition: Skimming – Thieves steal card numbers during normal transactions and use them to create counterfeit cards or perform transactions that do not require a physical card, such as online purchases.
Skimming can occur if you hand your credit card to a restaurant waiter or call center employee. It can also occur at unmanned terminals, such as gas stations or ATMs, through scanning devices secretly connected to payment terminals.
Fraud prevention: EMV chip cards help reduce fraud caused by device skimmers. However, special attention should be paid to unmanned payment terminals. If you notice anything unusual about the card slot, do not use it and report it to staff.
Use different cards for autopay vs. everyday spending
We recommend that you only use one of your credit cards to automatically check bills, such as wireless bills and website subscriptions. If so, please do not use this card for any other purpose. That way, these chargeable credit cards won’t be processed by store employees or restaurant servers or triggered by gas pump readers. Use another payment card for everyday expenses.
Pay with your phone
Smartphone-based payment services such as Apple Pay and Android Pay use tokenization technology to exchange payment information for each transaction, making in-store payments more secure. The seller never collects the actual credit card number. Additionally, your device’s lock screen does not unlock your phone, but is often password protected and usually uses biometrics such as a personal identification number or fingerprint.
Consider Twice Before Paying for Anti-Fraud Services
In today’s digital age, concerns about identity theft and fraud are rampant. Many companies offer anti-fraud services promising to safeguard your personal information for a fee. However, before reaching for your wallet, it’s essential to weigh the pros and cons.
Paying for anti-fraud services might seem like a prudent investment in protecting your sensitive data. These services often tout sophisticated monitoring systems that claim to detect suspicious activities related to your identity or finances. While this can provide a sense of security, it’s crucial to consider whether the benefits truly outweigh the costs.
Firstly, take note of what these services offer. Some might provide credit monitoring, alerts for potential breaches, or assistance in case of identity theft. However, many of these services duplicate protections already available for free or at minimal cost.
For instance, major credit bureaus often offer free credit reports annually. Additionally, you can set up alerts on your financial accounts to notify you of any unusual transactions without paying a subscription fee.
Moreover, while these services promise extensive protection, they might not be foolproof. No system can guarantee complete immunity from fraud or identity theft. Instances of breaches in even the most robust security measures are not unheard of, leaving individuals questioning the efficacy of these paid services.
Lastly, the cost factor cannot be overlooked. Many anti-fraud services come with monthly or annual fees, potentially adding up to a substantial amount over time. These expenses might not align with the level of risk you personally face.
Instead of solely relying on paid anti-fraud services, consider taking proactive steps to safeguard your information. Regularly monitor your financial accounts, enable two-factor authentication wherever possible, and be cautious about sharing sensitive details online.
In conclusion, while the promise of added security might be appealing, it’s advisable to think critically before paying for anti-fraud services. Evaluate whether the benefits offered justify the cost and consider exploring alternative, cost-effective measures to protect your identity and finances.
