September 15, 2022 |8 min read September 15, 2022 |8 min
read Credit card fraud is the No. 1 type of identity theft, according to 2022 data from the Federal Trade Commission (FTC). The good news is that if this happens to you, there’s a
clear set of next steps for you to follow. And if you report credit card fraud, you may be able to reduce its financial and emotional impact. Key Takeaways What Is Credit Card Fraud?Credit card fraud is a form of identity theft that occurs when someone uses your credit card or your credit card information to buy something or access your account without permission. The scammer doesn’t need to actually have your card to commit this type of fraud. Credit card fraud sometimes gets confused with credit card disputes. If you don’t agree with how a company has used your card, but you did give them permission to use it, that could be a dispute. But it’s generally not credit card fraud. This applies even if a scammer persuaded you to purchase something with your credit card. In other words, if you authorized the purchase, it may not be credit card fraud. Make sure you’re clear about whether you’re dealing with fraud or a dispute, because the process for disputing a charge is different than it is for reporting fraud. Types of Credit Card FraudCredit card fraud can take many different forms, and it’s getting more sophisticated all the time. Here are some common types:
How to Spot Signs of Credit Card FraudWhether you suspect you’re a victim of credit card fraud or you’d like to prevent it, here are some common signs to look for:
A monitoring tool can help you stay on top of your personal information. CreditWise from Capital One is a free service that gives you the ability to detect suspicious activity. How to Report Credit Card FraudThe sooner you notice and report credit card fraud, the quicker you can stop any unauthorized spending in your name. That can protect your credit score and limit your liability for any fraudulent charges. If you think you may be the victim of credit card fraud, here’s how to report it: Contact Your Card IssuerIf you still have the card, look on the back for a toll-free number. If you don’t have it, check the company’s website. Or you can contact your credit card issuer by letter or email. Contact a Credit BureauYou can also set up a fraud alert and/or a credit freeze, which makes it harder for anyone to change the details of your accounts or to open new accounts. With a fraud alert, you have to alert only one of the three major credit bureaus—Equifax®, Experian® and TransUnion®—and it will alert the other two. With a freeze, you have to contact each one of the three yourself. File an FTC ComplaintThe FTC will refer your complaint to the relevant authorities and offer resources to get you back on track. In most cases, taking this step means you don’t have to file a police report. Thankfully, if you report credit card fraud and it’s investigated and verified, the Fair Credit Billing Act says you’ll be liable for no more than $50, no matter how many charges are made on your card. What to Do If You Suspect a Fraudulent Charge on Your Capital One Credit CardIf you can’t find your card or think someone stole your card information, you should report fraud. Capital One will immediately lock the card so no one else can use it, and they’ll issue you a replacement card with a new card number. If you’ve noticed one or more charges on your account that you don’t recognize, you can follow these steps before reporting credit card fraud:
How to Help Protect Yourself From Credit Card FraudTaking the steps above could help you move on more quickly if you’ve already been a victim of credit card fraud. But there are also things you can do to protect yourself from it happening again. For example, instant purchase notifications might help you keep track of spending in real time. Fraud alerts from your issuer can help you spot unusual or suspicious charges. And card lock features might allow you to lock your card if you suspect it’s been lost or stolen. If you’re a Capital One customer, you can access and enable security features by adding the Capital One Mobile app to your phone or by signing in to your account online. The FTC also suggests following these best practices:
How Can Credit Card Fraud Affect My Credit?If it goes undetected, credit card fraud can paint a negative picture of your creditworthiness. This could be especially challenging if you’re in the process of applying for a loan or other financing or interviewing for a job where your credit is being checked as part of the process. So it’s important to keep an eye on your credit. According to Experian, being unaware of fraudulent activity could also affect your credit in the following ways:
Noticing credit card fraud and managing your credit is so important. So check your credit report regularly to look for any signs of fraud or identity theft. And if you see signs of either, report it immediately. Credit Card Fraud in a NutshellWorking to prevent credit card fraud is important. And the law and credit card issuers may be there to help too. But there are no guarantees. That’s why learning the signs and acting quickly to report suspected fraud are so important. It’s a good idea to check your credit report as often as you can and question anything you don’t recognize. You can get free credit reports from the three major credit bureaus by visiting AnnualCreditReport.com. And with CreditWise from Capital One, you can access your TransUnion credit report and VantageScore® 3.0 credit score anytime without negatively impacting your credit scores. Plus, CreditWise is free and available to everyone—not just Capital One account holders. We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional. Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners. Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. It may not be the same model your lender uses, but it can be one accurate measure of your credit health. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies. September 15, 2022 |8 min read Related Contentvideo | January 20, 2022 | 1 min video article | October 12, 2021 | 6 min read article | August 25, 2022 | 8 min read How can someone use my card without having my card?Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number. If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.
Can someone use my credit card without me?Not Illegal, Just 'Prohibited'
According to National Consumer Law Center Associate Director Lauren Saunders, it's not illegal to lend someone else your credit card. In other words, that little loan is not breaking any federal or state laws.
How do hackers get your credit card information?Malware and spyware
Accidentally downloading malware or spyware can enable hackers to access information stored on your computer, including credit card information and other details. Malware may include a keylogger that records your keystrokes or browser history and then sends that information to a hacker.
Can the bank find out who used my credit card?No, the bank cannot determine who used your debit card immediately. However, if you report the unauthorized use of your card to the bank, they may be able to investigate and determine who made the transaction.
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