The Frightening Facts of Credit Card Fraud

Credit card fraud can happen to anyone. Although falling victim is not the end of the world, it is inconvenient and time-consuming. The best tactic is to prevent credit card theft before it happens. Identity theft protection services offer numerous features to help monitor your accounts and ensure your safety.

As our lives continue to digitalize, identity theft is at an all-time high. Credit card details are among the most coveted targets as they guarantee instant access to money. With a new victim every two seconds, this kind of crime is happening worldwide. Mexico is the current fraud capital, as 56% of the world’s credit card fraud occurring there. However, the U.S. fairs little better, with their 47% share earning them third place.

This statistic comes as little surprise considering instances such as the notorious Target breach. In 2013, 70 million customers were affected after cybercriminals hacked the popular US retailer. 40 million of these cases included credit card details, confirming the urgent need to address this type of fraud.

How Did I Become a Victim of Credit Card Fraud?

Credit card thieves have no prejudice; they prey on all kinds of people. Even the well-prepared are a target. 46% of Americans have been victims of this crime over the past five years. In Florida – the worst affected state – 300,000 fraud complaints were made in just one year.

These are the most common ways for your details to be intercepted.

• Stealing mail
  Private letters often include sensitive data.
• Credit card skimmers
  Credit card frauds add devices to ATMs and payment machines to clone your card details.
• Public WiFi
  Open networks leave your data unencrypted; cybercriminals use rogue hotspots specifically for credit card scams.
• Identity theft
  With enough personal details, thieves can replicate your identity and fraudulently gain direct bank access.
• Phishing
  Fake websites and emails trick users into disclosing personal data.

Online identity theft is currently the worst culprit, accounting for 45 percent of credit card fraud in 2014. Counterfeit card fraud and physically lost/stolen cards also played a significant role, at 37 percent and 14 percent respectively.

How to Pick Yourself Back Up after Credit Card Fraud

Detecting fraud is understandably alarming. However, staying calm and acting fast is essential. here are our tips on how to prevent credit card fraud (you can also refer to what the experts suggest on credit card theft):

• Contact Your Bank
  Banks flag obvious expenditure discrepancies, so chances are they’ll contact you. If not, alert them immediately, cancel the card and discuss financial compensation. Customers are not liable for the money lost.
• Report the Fraud
  Most failed compensation claims are due to a lack of fraud evidence. Reporting the theft to all the relevant bodies, including the Police and credit bureaus, can subvert this.
• Review Your Habits
  Set up two-factor authentication on your accounts; ensure your passwords are complex and changed regularly; use a VPN on public Wi-Fi and leave your card at home whenever possible.
• Protect Yourself for the Future
  Invest in a good identity theft protection program to monitor your accounts and avoid further disaster.

Identity Theft Protection Services Can Help

Identity theft protection services have been developed to overcome the lingering threat of credit card fraud. The software tracks your bank accounts, social security number, credit reports and public records, to spot any potential threats. Many services also offer a plethora of other features.

#1 Identity Guard 

Identity Guard has user-friendly apps available for both iOS and Android devices and will notify you instantly if it detects any changes to your financial accounts or someone trying to open a new account in your name.

Includes:

• Credit and address monitoring
• Safe browsing tools
• Risk management report
• IBM Watson artificial intelligence for monitoring services

Identity Guard comes with a $1M identity theft insurance which covers your legal fees, travel expenses, lost wages, and child care costs if you are a victim of identity fraud. There are a number of plans available with the cheapest coming in at just $7.20 per month.

Read our full Identity Guard review now.

#2 Experian

Backed by the Experian bureau, this option ensures an excellent credit rating. As well as account monitoring and victim assistance, it supports your financial future.

Includes:

• FICO score simulators
• Credit report every 90 days
• 3-bureau credit monitoring.
• Individual fraud resolution specialist assigned to your case

Experian also offers up to $1M in theft compensation and a premium monthly plan at $19.99 – plus the added benefit of a budget option for $9.99. If you aren’t ready to commit financially, then you can try either service free for 30 days.

#3 IdentityForce

Identity force prioritizes protection for the whole family, which is ideal if you have kids who are starting to be financially independent.

Includes:

• Limits your online exposure, which reduces chance of being targeted
• Comprehensive bank account and investment tracking
• Blocks pre-approved card offers
• Provides online protection tools

Identity Force also comes with the $1M guarantee, but it’s slightly pricier. Their UltraSecure plan is $17.95 a month and offers a 14-day free trial. For their full credit services, it’s $23.95 per month or $239.50 for a year.

Read our full IdentityForce review now.

Protect Yourself from Credit Card Fraud Disaster

Cleaning up credit card fraud isn’t easy. The best thing to do is set up precautions so it can’t happen, like using an identity theft protection service.