Some Important Facts to Keep in Mind to Avoid Credit Card Fraud
Everybody finds it convenient to use a credit card for everyday purchases but this could prove to be slightly risky. Most consumers are worried about retail data breaches. Over 69 percent of the people have admitted that occasionally or frequently they are under tremendous stress because they are afraid of getting hacked. The best way of tackling the issue of credit card fraud is by getting well-informed about the issue. Sound knowledge about any situation would help you in conquering the fear. Here are some of the important facts that you must know for keeping your credit card safe and also, your mind tension-free.
Credit Cards Are Definitely a Safe Option for Paying
Credit cards actually offer an array of safeguards; as a result, they become one of the best and safest ways of paying for products and services. Today, thanks to the technological advancement and also, the ever-evolving smart encryption stratagem, it has become really tough for crooks to even think of accessing your credit card related data. However, federal law imposes stringent restrictions on customer liability for fraudulent transactions. A stolen or lost credit card would not mean a real loss of any funds. Moreover, despite what media wants us to believe, the fact remains that credit card fraud cases are not so common. As per studies, the global fraud cases are at almost historic lows. Moreover, even in the event of an extensive data breach, only about 2 percent to 5 percent of credit card data accumulated would be utilized in fraudulent dealings. It is quite improbable that any of your credit card data and information could get compromised. Moreover, the chances of you getting victimized by fraud seem to be quite remote.
You Are Not Liable for Fraudulent Charges
As per the Fair Credit Billing Act, consumers are deemed responsible for paying up to and not more than $50 if the fraud safeguards in place fail and unauthorized transactions are reflected in their accounts. That said, studies reveal that all major credit card issuers have zero liability policies in place, meaning you won't have to shell out any money if a fraudulent purchase occurs. It is true that undoing the work of a white collar criminal is a rough experience, but after it is all over, you will not have spent a cent of your own money.
Take Proactive Security Measures
There are plenty of safeguards put in place by the card issuing authorities and government agencies but there are things you as a consumer can do to ensure that you are safe. You should definitely keep tabs on your online debit and credit card accounts from time to time so that you can detect and report suspicious activity not long after it emerges. Keep your credit card with yourself at all times and do not lend it to friends or even family unless you are extremely sure. You can set up transaction alerts to be notified whenever a transaction takes place via text and email so that you can pick up signs as early as possible. In David's post, he has discussed yet another type of credit card fraudulent practice. He talks about fraud credit card Company and advises his readers to choose credit cards from renowned, reliable, and transparent companies only.
Your Transactions Would Be Under Scrutiny with Every Swipe
In case you are not aware of it, the fact is that each and every transaction you make with your credit card is under strict surveillance. Strict monitoring or scrutiny is done to identify any fraud or determine any chances of fraud taking place. According to the authorities, every time a credit card is used by the customer, they would be analyzing as many as 500 diverse points for determining if the specific purchase is authentic or a suspicious one. This would be involving a meticulous examination of practically everything right from geographic parameters to your transaction history and all this would be happening in just milliseconds.
EMV Is an Integral Part of the Security Arrangements
EMV credit cards are bound to become the norm particularly, in the U.S.A. These smart cards are a great way of combating any frauds. EMV credit cards would be safeguarding you against the counterfeit fraud. This kind of fraud would be taking place when hackers are able to break and skim data relating to your credit card from retailers’ terminals. EMV may not be the last word in credit card security but they are a positive step forward toward a more fortified credit card security.
It Is Best to Be More Cautious with Particular Types of Transactions
In the case of counterfeit fraud, the fraudsters are able to collect vital credit card information of consumers simply by installing smart skimming devices at payment terminals that are not secured or are left unattended. You must be extra cautious while making payments using your credit card in the absence of any store clerk. ATMs and gas pumps are the weak links that are exploited by fraudsters. Moreover, be extra vigilant at ATMs and Gas Stations. Your alertness could go a long way in avoiding any hacks to your credit card data. Beware of fraudsters!
It goes a long way towards your data security if you are a little alert while making payments at the payment terminal in the petrol pump or your ATM. Simply see if you find anything unusual and never insert your card if you find a plastic piece installed at the terminal. Inform your bank employees or the gas station staff.
Online Payments Using Credit Cards Are Safe But Always Be Alert
Online transactions are becoming safer by the day. There has been a definite technological leap and thanks to the cutting-edge protective measures, the credit card data is safeguarded while it passes right through the e-commerce payment channels. Tokenization has contributed a lot toward data security and safety. Tokenization would be substituting your credit card number with a unique number that cannot be accessed by the crooks. Tokenization would not only be limiting exposure, it would also, include serious identification features like a photo of your face or your fingertip as opposed to your pin number.
You need to be really smart in all your transactions online. You must be very careful while giving out credit card related information online. You must consider shopping with only renowned and reliable sites and make sure that the site is actually safe and secure before you insert any details.