September 30, 2022

Are you the Victim of Credit Fraud? Here’s What to Know

If you are a victim of credit card fraud, you may be wondering where and how your card was compromised. While it may be challenging to catch up with the fraudsters immediately, it’s crucial to understand what to do next to avoid further hurting your financial reputation.

The key to reducing and preventing credit card fraud is detecting suspicious activity early and acting immediately. If you have been a victim of credit card fraud, it is essential to reach out to a New York FCRA attorney to understand the available legal options as soon as possible.

What is Credit Card Fraud?

Credit card fraud is identity theft, where an unauthorized individual takes another person’s credit card information to withdraw funds or make purchases. Fraud can happen via the theft of the victim’s existing credit card, account number or PIN, or using a new credit card opened under the victim’s name without their knowledge.

While credit card issuers continue to develop new security measures to minimize unauthorized card access, fraudsters keep devising new ways to bypass these measures. Credit card fraud will cost you money in the long run and can damage your credit score or reports.

In addition to stealing your hard-earned money, fraudsters can gain access to your date of birth, name, social security number, or address to manage your bank accounts. In doing so, they can borrow loans and apply for unemployment benefits, tax refunds, and social security checks.

Common Types of Credit Card Fraud

Some of the most common types of credit card fraud include:

  • Card-not-present fraud: This type of fraudulent method mainly occurs online or over the phone without using a physical credit card. The fraudsters only need to know your account number, card’s security code, and name to make an online purchase.
  • Card theft: A fraudster can steal your credit card and use it until it hits the credit limit, gets suspended, or canceled. You can avoid this scenario by freezing or canceling your account immediately after realizing your credit card is missing.
  • Improper disposal: If you no longer want to use your credit, don’t just throw it in your trash bin. Fraudsters can access it as long as it is active. Therefore, always freeze or cancel the card before discarding it.
  • Account takeover: This occurs when a fraudster calls your credit card issuer and uses your credentials to change passwords, PINs, and mailing addresses so that they can control your account.
  • Cloned Cards: This credit card fraud method occurs when thieves illegally take your card to create a duplicate.

How to Protect Yourself from Credit Card Fraud

Some of the simple steps you can take to avoid credit card fraud include:

  • Keep your credit card safe
  • Monitor your transactions online
  • Don’t make your credit card information public
  • Create strong passwords
  • Review your billing statements

Schedule A Consultation With Our New York FCRA Attorneys

If you are a victim of credit card fraud, the FCRA attorneys from Mizrahi Kroub LLP can help correct your credit report. Contact us to get a free case evaluation and discover more about how we can help dispute the errors on your credit report.

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