| Losses | | | | have a limit of $2,000 before investigating each crime. |
| U.S. Federal Law can hold the cardholder victim | | | | Most credit card criminals know this and keep |
| responsible for up to $50. Merchants in high-risk | | | | purchases from any one business below $2,000. With |
| industries, like unattended automated fuel pumps or | | | | credit card crime occurring across state lines, criminals |
| Internet sales, anticipate a certain amount of credit | | | | often are never prosecuted because the dollar |
| card fraud, and set prices accordingly. These higher | | | | amounts are too low for local law enforcement to pay |
| costs are then passed onto the customer. | | | | for extradition. |
| Credit Card Companies | | | | Reporting Credit Card Fraud |
| In 2003 the Wall Street Journal estimated that the | | | | If you lose or have had your credit card stolen, you |
| credit card industry generated $500,000,000 in annual | | | | should immediately report it to your card issuer. Once |
| revenue in research and investigation fees paid by | | | | you report the incident, you are no longer responsible |
| consumers and businesses. This additional revenue | | | | for unauthorized charges made on your card. |
| offsets some of the costs incurred by credit card | | | | In the US, credit card fraud can be reported to the |
| issuing and processing companies' when investigating | | | | Federal Trade Commission (FTC) and to local and |
| chargeback claims. Some merchants believe the high | | | | regional authorities. It is the standing policy of the FTC |
| revenue generation by the banks from the crime | | | | not to investigate reports where the value of fraud |
| victims, reduce the incentive for the credit card banks | | | | does not exceed $2000. Local law enforcement may |
| to implement procedures to reduce credit card crime. | | | | or may not further investigate a credit card fraud, |
| However, the companies which collect these fees are | | | | depending on the amount, type of fraud, and where |
| not capable of dictating fraud prevention policies to the | | | | the fraud originated from. |
| rest of the world. Payment transfer associations, like | | | | Tips to help you avoid credit card fraud |
| Visa and Mastercard, receive profit from transaction | | | | Don't carry credit cards you don't use and never leave |
| fees calculated as a percentage of the amount of | | | | them unattended in a purse, briefcase or wallet. |
| money they transfer. These associations are | | | | Always make sure you get your credit card receipt |
| motivated to enact policies which increase the amount | | | | because it just may include your credit card number. |
| of money transferred by their systems. Credit card | | | | Never toss it in a public trash bin. You'll need that |
| fraud has a chilling effect on merchant acceptance of | | | | receipt later anyway to tally things up when your |
| credit cards, motivating merchants to not accept credit | | | | statement arrives. |
| card payments to mitigate their risk of loss. These | | | | Shred all documents that might include your credit card |
| payment transfer associations are therefore | | | | number before disposing of them - old slips, credit card |
| motivated to enact policies and enforce regulations | | | | statements, bills, anything. |
| which reduce credit card fraud. | | | | Never give your number over the phone to someone |
| Merchants have begun to request changes in State | | | | that you do not know. It's OK if you initiate the call but |
| and Federal Laws to protect consumers and | | | | if you get a call at home from anyone that you do not |
| merchants from fraud, but the credit card industry has | | | | know by name do not give them your credit card |
| opposed many of the requested laws. | | | | number. |
| Because all card-accepting merchants and | | | | Never respond to an e-mail asking for your number, no |
| card-carrying customers are bound by contract law, | | | | matter how official or legitimate it looks. These bogus |
| according to the agreements they sign with their | | | | e-mails are the #1 fraud right now on the Internet. |
| processing / issuing banks, respectively, State and | | | | Review your monthly statement as soon as it comes |
| Federal law has a smaller role in preventing merchants | | | | and report any problems right away. To insure your |
| from being tricked. Payment transfer associations | | | | rights, follow-up by filing a written complaint form. |
| enact regulatory changes, and issuing / acquiring banks, | | | | If using a bank card where you have the option to use |
| merchants, and cardholders are contractually bound to | | | | credit or debit, ALWAYS USE THE CREDIT OPTION |
| these new regulations. | | | | as this may prevent the skimmer device from |
| The Criminals | | | | accessing your four digit pin number. |
| In the US, persons that commit credit card crime | | | | If possible, apply for a Photo Credit card as an added |
| largely go unpunished and repeatedly victimize | | | | security measure which could help your identity from |
| consumers and businesses. The Secret Service | | | | being impersonated in Merchant establishments. |
| handles crimes involving the US money supply, they | | | | |