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