You will ordinarily hear people saying they need fraud protection on credit cards because they have been a victim of credit card fraud or scam. How about you? Have you also been a victim? Have you lost a lot of money when purchasing online?
Not only consumers are victims of credit card fraud, but online stores as well. Has your online store been a victim of credit card scam? It has been proven that the no-card-present on the Internet is the most susceptible to fraud and the online shops tend to lose money the most by way of charge backs.
However, consumers also may face more danger by way of identity theft and robbery. Since the credit card fraud victim’s information is the one being used by the fraudsters in committing crimes, the victim may be the one held responsible for the crime and be arrest.
Fraud Protection on Credit Cards for Online Merchants
The best fraud protection on credit cards for online merchants is still prevention rather than cure. First, the merchants should be able to identify bad credit cards.
- If the customer offers only the credit card and no other identification, be doubtful.
- If the credit card is unsigned. Or, if ever it is signed, but the signature of the customer is seemingly different from the signature on the card; beware.
- The name on other identification is not similar with the name on the credit card, be alert for this.
- If the expiration date has passed, it is definitely a bad credit card.
Next on fraud protection on credit cards, is to watch for suspicious actions. Even if the following can occur in a legitimate business transaction, these characteristics are often present during most fraudulent transactions. Therefore, merchants should be alert for customers that:
- Do not take the card from a wallet, but instead from somewhere else such pockets. It is normal for credit cardholders to keep their credit cards in their wallet for security purposes.
- Makes random purchases or purchases expensive items.
- Cannot provide identification with a photo when asked.
- Signs the receipt awkwardly or slowly and hurries the sales clerk at quitting time.
- Charges large or expensive items on a newly validated credit card.
- Insist on taking large items such as furniture or television at the time, even if the delivery is already included in the price.
If you believe the transaction is suspicious or you have an altered or counterfeit credit card, the signatures do not match or the account number presented is listed on the warning bulletin, call immediately your authorization center for proper guidance and instructions in handling the matter.
Another way of preventing credit card fraud on credit cards is to obtain integrated solution for fraud detection from credit card fraud protection service companies. These detection services can screen customers as soon as they initiate a transaction on the website of the merchants.
Fraud Protection on Credit Cards for Consumers
Fraud protection on credit cards for consumers is more of common sense. Here are some of the simple measures that are helpful in protecting you against fraud and identity theft:
- Take care of your information online. Nowadays, most of us do our banking and shopping on the Internet that makes us prone to fraud or scam. Make sure that you clear your passwords and log-ins. Transact only with secured websites or sites that you are familiar with.
- Monitor your credit card and bank statements. Take note that by law, you are entitled to obtain from each of the three main credit bureaus a copy of your credit report for free. Schedule your request for a copy to enable you to check your report for the entire year. Scrutinize the report for any abnormal activity such as transactions you did not make.
- Shred important documents. As part of fraud protection on credit cards, it is beneficial for you to purchase a shredder to regularly shred credit card applications, outdated credit card and bank statements, and all other documents with your account or personal information before throwing into the trash. Your junk mails also often include some of your personal information. Therefore, don’t forget to shred them before throwing away.
- Obtaining an identity theft protection service. Before you obtain any identity theft protection, take note that there is no one hundred percent guarantee that you will never be a victim of identity theft.
If you have discovered a fraudulent activity, notify immediately the bank or institution where the activity first occurred in order for them to freeze your account. You may also need to file a complaint with your local police or with the FTC. Check all your other accounts and keep a watchful eye on your credit report.