Fraud Prevention Month: A Closer Look at Credit Card Fraud
March 5 2015 |
March is fraud prevention month and as a provider of affordable payment processing solutions Pivotal Payments is dedicated to raising awareness through content that defines and provides solutions to combating various types of fraud. We hope that through this initiative we can help both our merchants and their customers protect themselves from fraud.
The issue of fraud affects individuals and businesses alike and there's no telling who the next target will be, whether a million dollar corporation or a mom and pop business in a small town. Either way, the effects are just as devastating but with some caution and vigilance, the more obvious scams can be detected and avoided.
The best way to avoid falling for a scam is to know how to identify it, so let's take a closer look at credit card fraud.
Credit Card Fraud
Credit card fraud happens when a credit card is used to make purchases without the cardholder's knowledge or consent. It is more prevalent in the card-not-present environment where the actual card need not be present. There are, however, a number of different ways in which credit card fraud happens:
How Credit Card Fraud Happens
- Lost or stolen credit cards that are not reported immediately.
- Moving and not alerting your financial institution of a change of address.
- Creation of counterfeit cards with the help of a skimming device.
- Dishonest employees.
- Deceptive calls or emails requesting personal information.
Protecting Yourself from Credit Card Fraud
For the above scenarios on how credit card fraud happens, here are some ways you can protect yourself:
- Report lost or stolen credit cards immediately. This prevents anyone from being able to use them.
- Prior to any move, ensure that you notify your bank of your new address.
- Accept EMV Chip Cards whenever possible using a chip enabled credit card terminal instead of magnetic stripe terminals which makes skimming easier.
- Invest in pay at the table solutions where the credit card is always visible to the customer, leaving no room for employees to tamper with your customers cards.
- Do not provide personal information to unknown sources. If you receive a suspicious call or email form your bank requesting personal information, do not respond but instead contact your bank directly.