Identity theft, and particularly credit card fraud, costs American consumers and businesses millions each year. In 2020 alone, over 149 million dollars were attributed to credit card fraud alone. As such, it’s more important than ever for consumers and businesses to invest in financial protection.
How can you tell if you’ve become a victim of identity theft or fraud? Our guide will show you 3 methods of credit card fraud detection that work.
- Check Your Statements on a Regular Basis
The best method of credit card fraud detection is, simply put, to keep a close eye on your spending. Many of us have more credit cards than we need or even use, which can make it difficult to detect credit card fraud on a lesser-used card.
When you receive your statements from your credit card company, read over them carefully. If there are any charges that look out of place, contact your card issuer right away.
Thankfully, most credit card companies these days offer freeze and fraud detection options through their phone apps. Don’t forget to use them.
- Double-Check Your Credit Report Each Month
If someone’s using your credit card information willy-nilly, your credit score will feel it. So, make sure you check your credit report each month. If it seems to take a nosedive when you haven’t been, say, applying for a mortgage or car loan, then you know that something’s amiss.
However, knowing that something on your credit report is wrong and doing something about it are two different things. In order to save your credit score and resolve your financial issues, you may need to seek out a credit expert witness. These legal professionals can stand before the court and clear away issues of credit card fraud.
- Know and Prepare for Common Fraud Methods
The best method of credit card fraud detection is to keep abreast of the latest methods fraudsters use to get your information. That way, you can try to defend your financial information against them. The most common credit card fraud methods include:
- Physically stealing the card
- Phishing for your account information and taking over your account afterward
- Using skimmers to clone your credit card’s information
- Using the card information you’ve stored on a website to make illicit purchases
Forewarned is forearmed, so keep these fraudster tactics in mind. If you’ve lost sight of your credit card, assume it’s stolen. If you gave your credit information to someone in the recent past, keep an eye out for changes in your credit report or statements. It’s better to take your financial protection into your own hands than clean up the mess afterward.
Looking for More Credit Card Fraud Detection Tips?
While these 3 methods of credit card fraud detection are good to know, there are other ways you can protect yourself from this increasingly common crime. If you’d like to learn more detection and protection best practices, and read over other financial advice, check out our blog. We update each day with more helpful and educational articles like this one!
