Protect Yourself from Credit Card Fraud

Credit card fraud is a growing threat in today’s digital world, affecting millions of people each year. By understanding how scammers operate and taking a few precautionary steps, you can stay ahead and protect your financial security.

What is Credit Card Fraud?

Credit card fraud occurs when a scammer gains access to a victim’s card information and uses it to empty their accounts, commit identity theft, and more.

Card fraud can be pulled off in several ways:

• Card Skimming: This involves a scammer tampering with an ATM or payment terminal. The machine reads the victim’s card information and transmits this information to the scammer.
• Brute Force Attacks: A scammer employs an auto-dialer to access the card numbers issued within the target’s bank identification number (BIN). The scammer can perform an infinite number of guesses until they land on the card’s expiration date, security code, and other numbers.
• Online Phishing: This involves insecure links embedded in emails or online ads, or through surveys, solicitations, job offers, dating profiles, and more. The scammer uses these means to gain access to the victim’s credit card information.

Protect Yourself

Fortunately, there are measures you can take to protect yourself from credit card fraud. Follow these tips to stay safe:

• Monitor Your Accounts: Check your credit card statements frequently so you can spot the first signs of fraud.
• Sign Up for Alerts: Many issuers will send you texts or emails when new charges are posted to your account or card-not-present transactions take place. These alerts can help you spot fraud quickly.
• Use Strong, Unique Passwords: Use strong, unique passwords across all your accounts. It’s also a good idea to change your passwords approximately every six months.
• Shop with Caution: Only shop reputable sites and avoid clicking on pop-up ads or links in emails from unverified senders. To confirm a site’s security, look for the padlock icon and “s” after the “http” in the URL. Avoid storing your credit card information in online shopping accounts. Finally, make sure the security settings on your devices are updated and choose a VPN (virtual private network) when using public Wi-Fi.
• Keep Your Cards Close: Keep your card tucked into your wallet or purse. If you use a cardholder on your phone case, keep your phone in a safe place and make sure the card numbers are not easily visible. It’s also a good idea to put your card away right after completing a purchase.

If You’re Targeted

If you suspect your credit card has been frauded, take immediate steps to mitigate the damage:

1. Notify Your Credit Card Issuer: Let them know about the fraud. Your old card will be canceled, and you’ll be issued a replacement card immediately.
2. Place a Credit Freeze: Consider placing a credit freeze on your accounts to prevent the scammer from taking out a loan or opening another account in your name.
3. Review Your Statements and Dispute Unauthorized Charges: Continue reviewing your credit card statements for any other unauthorized transactions in the months following the fraud. Report all unrecognized charges to your credit cad issuer and file a dispute.
4. Monitor Your Credit Reports: Keep a close eye on your credit reports in the months following the fraudulent activity. Check for any new accounts that may have been opened in your name or other suspicious activity.

Utilize Interior Federal’s Card Management tool in Digital Banking to protect against fraud and misuse in real time. Card Management allows you to lock or freeze your card instantly, receive real-time notifications, set transaction types you allow, and more. This tool helps you maintain greater control over your credit card and respond swiftly to potential misuse. 

Credit card fraud is a serious threat, but by staying vigilant and taking proactive steps, you can significantly reduce the risk. Regularly monitoring your accounts, using secure practices when shopping online, and acting quickly if fraud occurs will help you safeguard your financial well-being. Be proactive about protecting your information to minimize the potential impact of fraud.

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