Credit Card Fraud on the Rise: One in Four Users Affected
Table of Contents
One in four people who use credit cards have experienced some level of fraudulent activity in their accounts over the past year,according to a new study.
The survey of 40,197 participants, by research firm JD power, offers a sobering look at the dangers that consumers face as they head into the holiday shopping season.
The research also found that nearly three out of 10 banking customers with a checking, savings, or debit account have also seen some level of fraud.
“Financial institutions are spending billions on cybersecurity to address the constant threat of fraud, but there’s only so much they can do on their own,” JD Power Senior Director for Banking and Payment Intelligence Jennifer White said in a statement.
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon musk’s pro-Trump PAC or producing our latest documentary,’The A Word’,which shines a light on the american women fighting for reproductive rights,we know how crucial it is to parse out the facts from the messaging.
At such a critical moment in US history,we need reporters on the ground. Yoru donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets,we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
How to Protect Yourself during Holiday Spending (Updated November 21, 2023)
The holiday season is here, and with it comes increased spending. As consumers rely on credit and debit cards, safeguarding financial data becomes paramount. Here’s a guide to protecting yourself from fraud during this busy shopping period.
Use Virtual Card Numbers
A valuable tool for enhanced security is utilizing virtual card numbers, if offered by your credit card issuer. Peter Horadan, CEO at identity verification firm Vouched, explains, “This gives you a different card number to use with every merchant.” This means that even if a merchant’s system is compromised, the attacker only gains access to a temporary, limited-use card number, protecting your primary account details.Major card issuers like Capital One and Citi offer this service.
Digital Wallets Offer Enhanced Protection
Digital wallets like Google Wallet, Apple Pay, and Samsung Wallet provide a secure way to pay without sharing your actual card number with merchants. These wallets use tokenization, replacing your card details with a unique digital identifier for each transaction. This adds a layer of security, as even if a merchant’s system is breached, your sensitive card information remains protected.
Real-Time Alerts Help You Spot Fraud Quickly
Proactive monitoring is crucial. Setting up real-time transaction alerts through your bank or card issuer allows you to quickly identify and address any unauthorized activity. Terri Luttrell, compliance and engagement director at banking software firm Abrigo, emphasizes the importance of these alerts: “These alerts will let you know when big purchases are made, helping you address any transactions you didn’t make.” Most banks allow you to customize these alerts via their mobile app or website. Bank of America and Chase are examples of banks offering robust alert systems.
Despite taking precautions, fraud can still occur.Immediate action is vital. “Report the unauthorized transaction as soon as you spot it,” advises Luttrell. contact your bank or card issuer immediately to freeze or cancel the affected card and initiate a fraud investigation. The Federal Trade Commission (FTC) provides resources on reporting identity theft and fraud. You can also file a report with the FTC at IdentityTheft.gov.
Additional Tips for Safe Holiday Spending
* Shop on Secure Websites: Look for “https://” in the website address and a padlock icon in the browser, indicating a secure connection.
* Avoid Public Wi-Fi: Public Wi-Fi networks are often unsecured, making your data vulnerable. Use a secure, private network or a mobile hotspot.
* Be Wary of Phishing Scams: Be cautious of unsolicited emails or texts asking for personal or financial information. Legitimate companies will not request sensitive data through these channels.
* Review Your Statements Regularly: Monitor your credit card and bank statements closely for any unauthorized transactions, even small ones.
Key Takeaways:
* Virtual card numbers add a layer of security by providing a unique number for each merchant.
* Digital wallets protect your card details through tokenization.
* Real-time alerts enable rapid detection of fraudulent activity.
* Prompt reporting is crucial when unauthorized transactions occur.
By following these steps, you can enjoy a safer and more secure holiday shopping season. Staying vigilant and proactive is the best defense against fraud.