For many consumers, opening up a line of credit is an accomplishment and an effective way of making purchases. However, it can also increase the risk of fraud. As such, if you are concerned about credit card fraud, the following blog explores the most common schemes used to defraud consumers and the steps you can take to protect yourself. In addition, you’ll learn the importance of discussing your options with a San Diego County credit card fraud lawyer if you have reason to believe you are a victim.
Why Credit Card Fraud Is Increasing in California
As consumer dependence on online shopping, mobile banking, digital wallets, and other methods of storing payment information digitally is on the rise, so are instances of credit card fraud. Unfortunately, residents of California, including San Diego, are at an increased risk due to the state’s large population, widespread use of online e-commerce, and electronic payment systems. As such, many fraud schemes utilize personal data obtained through:
- Retail and medical data breaches
- Phishing scams
- Online marketplace fraud
- Public Wi-Fi interceptions
- ATM skimming devices
As such, consumers may not realize their information has been compromised until:
- An unauthorized payment appears on their statement
- They receive notice of a sudden drop in their credit score
- Debt collection notices arrive in the mail
- They are notified about an account they never opened
What Are Common Forms of Credit Card Fraud?
Unfortunately, there are a number of ways in which credit card fraud can occur. In many instances, the primary cause is data breaches, which occur when unauthorized users gain access to databases that store consumer information. As such, if you have used your credit card at online retailers, government websites, or even medical portals to pay bills, hackers can gain access to this information and sell it to other criminals to use.
Another common cause is phishing scams. These occur when thieves pretend to be legitimate companies in order to trick you into providing your credit card information. For example, you may get a text from your credit card issuer regarding an unauthorized transaction with a link to log in and block it. However, this is likely a scam, and logging into your account can provide access to the thieves.
Finally, physical card theft and skimming can result in your card being littered with fraudulent charges. Skimming occurs when a device is placed on point-of-sale terminals at gas stations or retail stores, or outfitted to readers at ATMs. When you insert your card into these devices, the information is gleaned and stored on a memory card for the thief to use or sell.
Most Common Credit Card Fraud Schemes
- Phishing emails impersonating credit card companies or banks
- Fake texts request login details
- Data breaches expose stored payment information
- Online accounts are taken over via password theft
- New credit accounts are opened in your name
- Gas stations and other points of sale terminals are outfitted with skimming devices
Warning Signs Your Credit Card Information May Be Compromised
It’s critical for consumers in and around San Diego County and Southern California to understand the most common warning signs of credit card fraud. Doing so is critical to limit financial damage while disputing unauthorized charges as quickly as possible to preserve your chance of a more favorable outcome.
Warning Signs to Look For
- Suspicious activity on your credit card statement
- “Test” purchases before larger ones
- Denied purchases despite having available credit
- Missing billing statements or notifications about your account
- Calls from debt collectors
- Log-in notifications from unfamiliar devices or locations
Why Immediate Action is Critical
When left unremedied, fraudulent activity can quickly escalate, meaning thieves may:
- Max out credit limits
- Open additional accounts
- Harm credit scores
- Cause credit errors
- Cause debt collection activity
What Steps Can I Take to Prevent Becoming a Victim?
If you are worried about your credit card being compromised by a thief, it’s imperative to understand the steps you can take to best protect yourself.
One of the most important things you can do is set up purchase alerts. This allows your card issuer to send automatic alerts anytime a purchase over a certain amount has been made, which then allows you to act quickly if you did not authorize the purchase.
Additionally, you should utilize contactless payment when possible, as this can help you prevent having your cards skimmed. Similarly, when you are using card readers, be sure to protect your PIN from those who may be “shoulder surfing,” meaning they are peeking over your shoulder to see your sensitive information.
Finally, you should refrain from storing your credit card information online. When you check out at an online retailer, you should decline to store your credit card information for future purchases. If there is no option to decline, you should manually remove the information after you have completed the purchase.
Prevention Methods
- Consider utilizing a password manager to securely store strong passwords
- Utilize multi-factor authentication on all accounts
- Enable transaction and fraud alerts
- Do not click on links from suspicious texts or emails
- Carefully inspect ATM and gas station card readers before inserting your card
- Do not make purchases on public Wi-Fi networks
- If you believe you are a victim of credit card fraud, place a freeze on your credit report
- Ensure you regularly monitor your credit to take quick action in the event of fraud
Consumers throughout San Diego County and Southern California can face long-term financial consequences after credit card fraud. As such, consumers should act quickly to dispute these fraudulent charges to prevent financial damage.
Contact an Experienced San Diego Consumer Protection Attorney
As you can see, credit card theft can be incredibly impactful. That is why it is critical to connect with an experienced consumer attorney with Barthel Legal to assist you if you believe you are a victim of credit card fraud. We understand the impact this can have on your credit and finances, which is why we are committed to helping you fight for the best possible outcome. Contact us today to learn more.
