Credit Card Fraud: Protecting your finances from unauthorized charges.

Credit card fraud is one of the costliest forms of identity theft for consumers, financial institutions, and card issuers. Security.org estimates 127 million U.S. adults have experienced it, more than a third of the total number of global victims. Nilson Report, which covers the credit card industry, estimates losses to the U.S. will reach $165.1 billion over the next ten years. These staggering numbers prompt financial institutions to play a critical role in helping their members safeguard against unauthorized charges. This week, we look at best practice and strategies that can help you protect yourself against unauthorized charges on your credit card

1. Monitor Your Accounts Regularly: Regularly monitoring your credit card statements and online accounts can help you catch unauthorized transactions early. Most financial institutions offer mobile apps and alerts that notify you of any new charges. Sign up for them.
2. Use Secure Payment Methods: Always opt for secure payment options, like EMV chips and contactless payments, which offer enhanced security features. Enable two-factor authentication for online purchases to add an extra layer of security. The extra time involved is worth it.
3. Stay Informed About the Latest Scams: Financial institutions often provide updates and alerts about the latest fraud schemes. Stay informed and cautious of suspicious emails, phone calls, or text messages requesting your credit card information or urgent requests for payments.

1. Immediate Reporting: If you notice any suspicious transaction, report it immediately to your credit card issuer. Early reporting not only secures your finances, but also helps in the quick resolution of the issue.
2. Review Statements Regularly: Make it a habit to review your monthly statements thoroughly. Any irregularities should be reported as soon as possible to initiate the dispute process. Charges from legitimate vendors often appear on statements as codes or abbreviations, but so can fraudulent charges. If you are uncertain about the origin of a charge, inquire about it with the card issuer.
3. Follow Up: After reporting a fraudulent charge, follow up with your financial institution regularly to check the status of the investigation. Keep all correspondence and documents related to the fraud for your records.

1. Be Cautious of Phishing Attempts: Do not click on links or open attachments from unknown or suspicious sources. Verify the authenticity of requests by contacting the issuer directly using official numbers.
2. Secure Personal Information: Keep your personal information secure and avoid sharing your credit card details over the phone or internet unless you are sure of the recipient’s integrity.
3. Regularly Update Your Software: Ensure that your computer and mobile devices are updated with the latest security software, web browsers, and operating systems. This helps in protecting against malware that steals personal information.

1. Free Credit Reports: You are entitled to one free credit report every year from each of the three major credit bureaus—Equifax, Experian, and TransUnion. Reviewing your credit report can help you identify any fraudulent accounts or activities.
2. Credit Freezes and Fraud Alerts: Consider placing a credit freeze or a fraud alert on your credit reports if you suspect you have been a victim of fraud. This makes it harder for identity thieves to open accounts in your name. This is becoming an increasingly practical way to prevent becoming a victim of fraud.
3. Credit Monitoring: While the bureaus offer services that can alert you to changes in your credit report, financial institutions often provide additional tools, such as Savvy Money, which provides members with access to their credit score and free credit alerts. These services enhance your ability to monitor your account for unauthorized activities.

By adopting these practices and utilizing available resources, members of financial institutions can significantly reduce their risk of credit card fraud. Staying vigilant and proactive are key components in protecting your financial wellbeing from unauthorized charges.