4 Ways To Protect Yourself From Credit Card Fraud

By: Gen Wright


Credit card fraud causes tremendous losses from card holders, card issuers and also merchants. These effects can range from minuscule to outright disastrous. Thus raise the question, what to do about credit card fraud and how to protect against credit card fraud?

As a card holder, you can minimise your risk of being a victim of credit card fraud by always safeguarding your credit card and regularly checking for any unauthorised transactions. Card users should sign on their cards after receiving it, never lend their card to anyone, never provide credit card details to an unknown party and cut expired credit cards into two when users get a new one. It is useful to keep the phone number of your card issuer so that any stolen or lost cards, or even unauthorised transactions to a third party can be reported at once. Card users should always check their credit card statements as soon as it is received and notify the issuer of any error or possible fraudulence and follow up in writing immediately. All charge slips should be destroyed before being thrown away.

Banks also provide protection against credit card fraud by immediately checking atypical transactions with the customer. Credit cards issued by banks usually have built-in credit card fraud protection system, allowing customers to feel safer. Besides active monitoring for abnormal transactions, some banks also provide free overseas emergency assistance when cards are stolen or lost abroad, providing cash advancements to tide over customers. Internet guarantee is given by banks, so if a user's credit card is used unscrupulously on the web, the user will not be held liable. Whether it is the traditional magnetic strip-base cards to more sophisticated cards, ATM manufacturers are doing their bit to increase protection from credit card fraud by adding security features.

The same protection, however, is not provided for merchants. Therefore, merchants need to have good credit card fraud management system to combat the problem. Some steps taken to protect from credit card frauds would be to not accept orders unless complete information is provided, including full address and phone number, these also need to be verified to clear of suspicion. Orders from untraceable email addressed are often fraudulent and shouldn't be taken. Merchants should be wary of multiple orders of the same product or large orders as a means of protection from credit card fraud.

The average order on the Internet is around fifty dollars, usually lower for first time orders, so be careful if there is a first time order for multiple items, costing hundreds or thousands. International orders should be given extra attention; always validate the order before shipment to another country. Fraudsters would want to receive goods as soon as possible and move on to a new location, so beware of express shipping.

Besides this, watch out for shipping addresses that differ from credit card billing addresses, as this can be a sign of fraud. If suspicious about anything, it doesn't hurt by giving the customer a ring to confirm the purchase. The best protection against credit card fraud is to know when it strikes; provides an effective means of detecting credit card fraud to protect your business and your customers.

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For more information on how you as a business entity can protect against such like losses check out credit card fraud management or what to do about credit card fraud.

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