7 Things to Know about Credit Card Fraud

The other morning, at breakfast, my husband received a text from our credit card company. He asked me how much my meal cost at a dinner I attended the day before. “It was free,” I said. He then realized that the charge that the credit card company wished to verify was fraudulent. A quick Google search of the establishment where the charge originated revealed that it was made in a location 400 miles from where we live.

When I logged onto our account, I found five fraudulent transactions that occurred the day before. Someone had a lot of fun with my credit card number. They went to a tavern, got a tattoo, bought ice cream, and did some other shopping. I’m not sure how they got my number, but it was probably from somebody’s data breach. There are plenty of them these days.

I promptly called the credit card company, and within 10 minutes or so, had the problem sorted out. While I had the fraud rep on the phone, I asked a few questions, and have summarized her responses below. You might find them helpful, if you become the victim of credit card fraud.

1. Once the fraudsters have your credit card information, they can take a used gift card of any kind and load your account data onto that card. Then, they will use that card anywhere that will take it.
2. If a fraudulent charge is made to your account, the credit card company will reverse the charges, but while the matter is being investigated, the total of those funds will not be available to you.
3. A new card, with a new number, will be issued to you. If you need the card quickly, many credit card companies will FedEx it to you. However, since no signature is required for the delivery, you’ll want to retrieve the package promptly.
4. If you have any automatic payments being charged to your credit card, you must contact each of those vendors to tell them the new number
5. Now that credit cards contain a microchip, all merchants who accept a fraudulent card are responsible for the charges. Therefore, merchants who don’t have a chip reader, should probably invest in one.
6. Your credit card company will usually contact you if it notices unusual activity.
7. Don’t rely on your credit card company to catch every fraudulent transaction. Monitor your account carefully throughout the month.

I’ve experienced fraudulent activity on my credit card several times over the years, as many of us have. It’s scary that it’s almost becoming commonplace. In 2004, when someone charged seven baby grand pianos to my credit card, I called the police. I wouldn’t bother doing that today.

Will the chip reader solve the problem? I doubt it. Fraudsters will soon find a way around it. So, even the merchants who invest in the chip reader will be victims in the future.

Ann Silverthorn writes about a wide variety of topics in numerous genres. She recently completed a biography of William E. Dimorier (1871-1951), a poet and educator, who dedicated his life to service and leadership. Several new projects are underway.

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