How to Minimize Online Credit Card Fraud

Online Credit Card Fraud - Your guide for credit cardsHave you been a victim of online credit card fraud?

This type of fraud is very rampant nowadays and people, especially online merchants are easy targets.

Are you aware what it is?

Credit card fraud is a term used to describe crimes committed by using credit cards that have been stolen or using information from a credit card through hacking, pharming, skimming or phishing.

Credit card fraud may also lead to identity theft, which is more damaging.

Both shoppers and merchants are possible victims of online credit card fraud.

Losses through this crime have reached more than three hundred billion dollars in the U.S. alone.

Therefore, when credit card fraud happens, it is imperative that you immediately take action.

If you wait longer, you might not be able to fix the damages and get back your identity.

Ways to Minimize Online Credit Card Fraud

Most ways to minimize online credit card fraud are common sense.

However, it is easy to forget these simple ways when shoppers see big bargains online or merchants receive large orders enough to cover a day’s sale.

  • What Online Shoppers Can Do

Online Credit Card Fraud - Your guide for credit cardsBefore you pull out your credit card, for an online purchase, remember these possible ways of minimizing online credit card fraud and protecting yourself from fraudulent activities.

  1. The first thing that you should do before shopping online is to check your credit card’s terms and conditions regarding protection for online shopping.
  2. Do not store your card information in your computer file.Thieves or hackers can easily retrieve them and do damage to you.
  3. Make sure that you only deal with sites that trustworthy or familiar to you.
  4. When making an online purchase, do not leave your computer unattended while in the middle of your transaction.
  5. Check if the address of website you are purchasing from is secured.
  6. If possible, use an online payment service company for online purchases instead of your credit card.
  7. Do not make online purchase using a public computer.
  8. Regularly check your credit card and bank statements for any irregularities.
  • Merchants Possible Actions

Online Credit Card Fraud - Your guide for credit cardsIf you are an online merchant, you should always be alert for online credit card fraud.

Actions you can consider to minimize fraud include:

  1. When accepting credit card payments, require customers to provide the card verification value that is found at the back of the card.
  2. Your staff should be trained to ask for IDs.Use AVS or account verification system in order to check if the zip code and other data on the card and the ID match.
  3. Install a firewall system in your computer as protection against malicious programs and hackers.
  4. Make sure that you use a secured website.Your customers will trust you more if they see that your website is secured.
  5. Commonly thieves use expired credit cards, so always check for the expiration date on the credit cards of your customers.
  6. Invest on the best secured shopping cart software for guaranteed protection.Trusted shopping cart system will also provide peace of mind to your customer and make them trust you.
  7. Be cautious of suspicious large and rush orders. Usually, thieves make these types of orders.

Where to Report Online Credit Card Fraud

Online Credit Card Fraud - Your guide for credit cardsIf you become a victim of online credit card fraud, taking immediate action is one way of minimizing damages.

Here are some of the addresses and numbers you can contact for reporting, help and information.

U.S. Federal Trade Commission – www.ftc.gov

Experian – 8883973742

Equifax – 18006851111

Transunion – 18009168800