What is credit card fraud?
Credit card fraud has long been a plague for consumers and merchants alike. Even in the offline world credit card numbers have been stolen and used by thieves to buy merchandise and rack up costly purchases at their innocent victims’ expense. In the past, these fraudsters used cameras or credit card readers to get your card numbers. Sometimes they’d go as far as to steal your wallet. However, with the enormous growth in online shopping, the Internet has become another arena for thieves to get what they want – with your money.
Credit card fraud online most often occurs when someone is able to steal your credit card number through phishing emails, charity scams, false auctions or fraudulent online stores. Once they have your card information, thieves use it to make purchases elsewhere. They ship these purchases to themselves, but try to leave you with the bill. You may not even realize that your card has been compromised until several weeks after the fact - especially if you don’t check your credit card statements regularly.
Credit card fraud is a serious offense that can ruin your credit history, leaving you trying to prove to the courts that you’ve actually been the victim. It’s important to keep track of your credit card spending habits, receipts, etc. Before even applying for a credit card, read the company’s policy on credit card fraud to see what resources they offer customers. Sometimes they will offer a guarantee or insurance against theft. Just make sure to read the fine print. It’s great if they offer credit card fraud protection, but not great if there are strict regulations around that insurance. Some companies have low deductibles, but with others the theft may have to constitute a huge amount of money to be considered “covered”.
A safer way to shop online and avoid the threat of Internet fraud is to use a cash-based payment method such as eBillme, which protects shoppers with a comprehensive Buyer Protection program that includes zero fraud liability.
