Credit card fraud is when someone uses your credit card to make transactions without your consent. It can include identity theft. It’s a common type of fraud that can set you back financially and cause emotional distress.
If you’re the victim of credit card fraud, you might have suffered financial losses but you can recover your money.
Read the rest of this article to explore the different types of credit card fraud, how to prevent and deal with them, and how a lawyer can assist you with minimizing your losses.
What are Common Types of Credit Card Fraud?
Credit card fraud is one of the most common types of fraud, costing people billions of dollars every year. Here are examples of fraudulent behavior that occurs.
- Card-not-present fraud. Fraudsters steal your credit card information and use it to make purchases, either via phone or online, without even needing the physical credit card.
- Application fraud. This is when fraudsters steal your private information to apply for credit cards in your name, affecting your credit score.
- Controlling credit card accounts. Scammers contact credit card companies pretending to be you so they can change your account details to take control of your account.
- Stolen cards. Fraudsters physically steal your credit card, such as out of a purse or at an ATM machine.
What Should You Do if You’re the Victim of Credit Card Fraud?
If you’ve been a victim of credit card fraud or you suspect it, you should act promptly to stop the fraudsters.
Collect Evidence of the Fraud
Gather as much proof as you can of the credit card fraud. This could include suspicious activity on your bank statements, screenshots of messages from scammers, or witness accounts of theft. These will help you build your case.
Report the Fraud
Contact your bank so that you can cancel the credit card. Your bank will be able to replace your card.
You should also report the fraud to your credit card company, speaking to their fraud department. Explain what happened and ask that fraudulent charges be erased.
Other ways to report the fraud:
- Report identity theft at Identitytheft.gov. They’ll also guide you through the recovery process.
- File a report with your local police.
Place a Fraud Alert on the Card
This will stop fraudsters from being able to open new credit card accounts in your name. Lenders will have to contact you first to verify your identity before approving your new credit accounts.
Don’t Pay for Fraudulent Transactions
Legal experts usually warn not to take on the fraudulent transactions as paying them is essentially taking responsibility for the debt, which makes it more challenging to erase them from your name.
What Actions Prevent Credit Card Fraud?
You can prevent fraud on your credit card by adopting some healthy habits:
- Avoid providing personal or financial information via text, phone, or email. Authentic institutions will never ask you for these details.
- Avoid card readers that don’t look like the usual ones you use, such as if they have strange keypads. These could be involved in credit card skimming.
- Request paperless statements. Physical statements that are mailed to you could be stolen by fraudsters who will gain access to all your information.
- Check credit card statements. You should check your financial statements every month so that you can identify any suspicious activity.
- Use virtual cards online. When completing online transactions, it’s best to use a virtual card so that you don’t input your credit card details that could compromise your accounts. This is especially advisable if you’re unsure of the authenticity of the website.
When Should You Contact a Lawyer for Credit Card Fraud?
There are times when you should get in touch with a lawyer to help you with your credit card fraud case. These include:
- Your fraud charges haven’t been reversed.
- You’re dealing with credit report errors that aren’t being corrected.
- You’re a victim of identity theft.
- You’ve had a significant amount of money stolen.
That said, you can benefit from hiring a lawyer to assist you throughout the process of credit card fraud. Here is how they can help you achieve a favorable outcome and recover your financial losses.
They’ll Provide Legal Knowledge
Sometimes dealing with credit card fraud can be challenging because it can be multi-layered and governed by various laws. Having a lawyer help you with your case will ensure you can stay legally sound and gain clarity on the situation. They’ll also be able to guide you on local regulations regarding your case.
They’ll Help You Report the Fraud
Your lawyer will guide you on reporting the fraud, such as by helping you with gathering evidence to support your claim.
They’ll Deal with Companies During Data Breaches
If your credit card details were compromised during a company’s data breach, your lawyer can deal with the company involved to achieve a favorable settlement.
They’ll Deal with Banks for Investigations
Your lawyer will work with your bank to investigate the credit card fraud. If the bank takes a long time to deal with the case, your lawyer will be able to put pressure on them to prevent unfair debt collection and reverse any charges.
They’ll Deal with Creditors
If there’s fraud on your account and it’s affecting your credit report, your lawyer will get in touch with creditors to correct the errors.
They’ll Reduce Your Stress
Credit card fraud can be complex. By drafting documents, unpacking legal jargon, and avoiding mistakes, your lawyer will help you fight the fraud and recover your losses without you having to invest so much time and energy into the case.
Do you need a lawyer for credit card fraud?
If you’re involved in credit card fraud, it can make you feel stressed because your personal details and finances are at risk. Contact a lawyer on ContractsCounsel, an online legal network connecting clients with vetted lawyers on the platform. They’ll assist you through all the steps of reporting the fraud and will help you recover your losses.
