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