How Do Credit Card Companies Investigate Fraud?
7 mins read

How Do Credit Card Companies Investigate Fraud?

They can maximize their credit card spending by spending as much money as possible on their new credit card. Many fraudsters will use the new credit card to purchase items that have a high resale value so they can turn it into cash. To further ensure that your rights are protected, you should follow up with a dispute letter that explains the unauthorized credit card charges. Reference your phone call and include the name of the customer service representative with whom you spoke. Before reporting charges to your credit card issuer, make sure the chargers weren’t made by a joint account holder or authorized user on your account. This guide is just one of the many resources available to understand and combat identity theft-including credit card fraud. Browse the FTC and Consumer Financial Protection Bureau (CFPB) websites for more guidance on the forms that identity theft can take.

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When a credit card is lost or stolen, it may be used for illegal purchases until the holder notifies the issuing bank and the bank puts a block on the account. Most banks have free 24-hour telephone numbers to encourage prompt reporting. Still, it is possible for a thief to make unauthorized purchases on a card before the card is cancelled. Once you dispute an unauthorized charge, the credit card issuer will typically remove it from your account.

In addition, the Fair Credit Billing Act says that you’ll never be liable for unauthorized charges made while your card was in your possession. In other words, if the unauthorized charges were made with your credit card account information rather than your credit card, you won’t be held liable as long as you still have physical possession of your card. When you discover a fraudulent charge, call your credit card issuer right away to report the unauthorized charge. By law, you are not liable for fraudulent charges to your credit card after you report it missing and your liability is limited to $50 for unauthorized charges before you report your card missing. In most cases, if you report suspected fraud right away, you will not be liable for any unwanted charge, no matter the amount.

How to report credit card fraud

While it may seem like an outdated and unsophisticated way to steal data, some criminals may still go through your physical mailbox or trash bins in person. It’s possible to find credit card account numbers, financial statements and sensitive information regarding your investments and retirement funds. When possible, don’t throw out important financial statements without shredding them first. Here’s an overview of what to look for to spot credit card fraud or identity theft, and more information on how to report credit card fraud if it happens to you.

Skimming is the theft of personal information which has been used in an otherwise normal transaction. The thief can procure a victim’s card number using basic methods such as photocopying receipts or more advanced methods such as using a small electronic device (skimmer) to swipe and store hundreds of victims’ card numbers. Application fraud can also occur using a synthetic identity which is similar to the fake documents mentioned above.

A credit card fraud investigation could take up to 90 days, during which time the credit card issuer may contact the merchant that charged your card to get more details about the transaction. The card issuer may request copies of a police report or receipts to compare signatures if they’re available. On the other hand, you could potentially be held liable for fraudulent purchases made with a debit card. This may include all the money in your bank account if a thief is able to use your debit account number to drain it, and you don’t notice the fraud within 60 days of your bank statement being sent to you.

If you find suspicious charges or purchases on your accounts, inform your credit card issuer right away. Card skimming theft can affect anyone who uses their credit or debit cards at ATMs, gas stations, restaurants or retail stores. A skimmer is a device installed on card readers that collects card numbers. Thieves will later recover and use this information to make fraudulent purchases. Skimmers can usually be spotted by doing quick visual or physical inspections before swiping or inserting a card. With someone’s credit card information and other personal details about that person, thieves can apply for other credit cards in that person’s name.

comments on “How Do I Prevent Credit Card Theft?”

It’s important to know their tactics so you can prevent, or at the very least, deter them from doing so. The Experian Smart Money™ Debit Card is issued by Community Federal Savings Bank (CFSB), pursuant to a license from Mastercard International. When you’re not able to trust another machine on your network, it’s very much like using an open Wi-Fi hotspot. That other machine could do many interesting things to compromise your security. It’s important that all machines connected to your router are secure and free of malware. Make sure you’re up to date and running appropriate scans on all of them.

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Experian will provide updates throughout the process, which normally takes about 30 days. If you decide to file a police report, take a copy of your FTC report and provide as many details as possible. I want comments to be valuable for everyone, including those who come later and take the time to read. Comments that don’t add value will be removed, including off-topic or content-free comments, or comments that look even a little bit like spam. All comments containing links and certain keywords will be moderated before publication. That’s one way card information can be stolen without the card ever having left your hands. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

But it occurred to me recently that I’ve never published a primer on the types of card fraud and the likelihood with each of the cardholder ever learning how their account was compromised. When shopping online, only share your credit card number with a reputable site. Sometimes, the first evidence of credit card fraud is on your card statements. To maintain even more control of your card account, use your bank’s mobile app or website to regularly verify charges. Credit cards can be lost or stolen, or someone could steal your mail and gain your personally identifying information. Additionally, systems with credit card information could be hacked or broken into. Thieves also may use spyware or software that is used to scrape important information from your computer or from the systems of online retailers where you shop.

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