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Credit card fraud can happen if someone physically steals your card or virtually hacks your account, and it can be a serious headache to resolve.
If you're a victim of fraud, you may incur unauthorized charges that can result in steep bills. And if your credit card balance increases drastically, you may risk damage to your credit score.
Thankfully, there are actions you can take now to ward off fraud and spot potential unauthorized use of your card early. The key to safeguarding your credit card information from fraudsters is to stay proactive and on top of your accounts.
To help you identity fraudulent activity and stop it in its tracks, here are some common types of credit card fraud and ways to protect against them.
How credit card fraud happens
Credit card fraud occurs when an unauthorized person gains access to your information and uses it to make purchases. Here are some ways fraudsters get your information:
- Lost or stolen credit cards
- Skimming your credit card, such as at a gas station pump
- Hacking your computer
- Calling about fake prizes or wire transfers
- Phishing attempts, such as fake emails
- Looking over your shoulder at checkout
- Stealing your mail
Unfortunately, there is no fool-proof way to stop hackers from making such attempts, and fraudsters seem to always find new ways to tap into your information. But you can limit your chances of becoming a victim, or minimize the damages from fraudulent activity that's already occurred on your accounts. Below, we explain how.
How to protect yourself from credit card fraud
Most credit cards today come with sophisticated security features, and you can also turn to free credit monitoring services as an easy way to keep an eye out.
The easiest actions you can take include opting for a card with $0 liability protection, monitoring your accounts closely, signing up for transaction alerts and securing your personal information.
Choose a credit card with $0 liability on unauthorized charges
The Fair Credit Billing Act (FCBA) protects you against credit card fraud and limits your maximum liability to $50. Some card issuers expand that law by offering $0 fraud liability on unauthorized charges, which means you won’t be held liable for any amount of fraudulent purchases.
Here are some cards that provide $0 liability on unauthorized charges:
- Citi Double Cash® Card; see rates and fees(requires fair to excellent credit)
- Blue Cash Preferred® Card from American Express(requiresgood to excellent credit)
- Chase Freedom® (requiresgood to excellent credit)
- Bank of America® Travel Rewards Credit Card(requiresgood to excellent credit)
Monitor your credit accounts
Regularly check that the transactions listed on your credit card statements and online accountswere made by you or any authorized users. If you notice anything suspicious, contact your card issuer right away to dispute the transaction.
You may also want to consider signing up for a credit monitoring service, such as IdentityForce® and CreditWise® from Capital One, which can provide you with an early notice of potential fraud. This can help you take steps to protect your personal information.
IdentityForce®
On IdentityForce®'s secure site.
Cost
UltraSecure Individual: $19.90 per month or $199.90 per year; UltraSecure+Credit Individual: $34.90 per month or $349.90 per year; UltraSecure Family: $24.90 per month or $249.90 per year; UltraSecure+Credit Family: $39.90 per month or $399.90 per year
Credit bureaus monitored
3-bureau credit monitoring, alerts and reports: Experian, Equifax and TransUnion®, with UltraSecure+Credit Individual and UltraSecure+Credit Family plans only
Credit scoring model used
VantageScore®3.0, with UltraSecure+Credit Individual and UltraSecure+Credit Family plans only
Dark web scan
Yes, with all plans
Identity theft insurance
Yes, at least $1 million with all plans
Terms apply.
Learn more: Here's our full breakdown of the 6 best credit monitoring services and our IdentityForce review and CreditWise review.
Sign up for transaction alerts
Manually monitoring your account and signing up for credit monitoring are both good ways to track changes to your account. However, you can add another layer of protection by creating alerts with your card issuer. You can set up alerts for a variety of transactions, including ones that exceed a certain limit, purchases made internationally, balance transfer requests and other actions.
Secure your information
Before you complete any purchase, whether it’s online, in store or over the phone, make sure your information is secure. For online transactions, check that the website says “https” at the beginning of the URL and that you’re not using public wifi. When you pay in store, make sure you don’t leave your card visible to other consumers. And prior to telling a phone rep your credit card number, be sure that you initiated the call.
Don’t miss:
- Online shopping is convenient, but leaves you open to fraud—here's how to protect yourself
- How much does credit monitoring cost?
- What to look for when you review your credit report
- Why your credit score differs and which one matters
- Spot fraud early with PrivacyGuard credit monitoring services
Information about the Bank of America® Travel Rewards Credit Card andChase Freedom® credit card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
To learn more about IdentityForce®, visit theirwebsite.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
