In recent years, it has been reported that U.S Companies lose up to 9 billion dollars due to credit card fraud. To help minimize a hefty loss, credit card companies are offering credit card protection to help protect their customers from credit card fraud.
In this guide, we will breakdown everything you need to know about the 5 main different types of credit card fraud protection.
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Suspicious Activity Monitoring
Credit card companies can provide automatic suspicious activity monitoring to all of its cardholders where the cardholder will get notified of any out of the norm expenses. The company analyzes charges to determine if they are part of your normal spending habits and will use analytic data to help monitor your account.
Suspicious activity is usually linked to credit card fraud so it is important to notify your bank if you are planning on going out of the city you live in or if you are planning on making a big purchase. If it looks like your card has been compromised , the bank will contact you to verify if the charges made on your account were your charges or not. If they are not, then the account will be frozen and will not be able to be used anymore.
Location Detection
If you are planning to go on a vacation, it is best to notify your card company so that they do not consider your charges as fraudulent charges. Certain companies have location services that can allow to company to know that you are town, however if you do not notify the credit card company, your card will get declined and the charges will be reported as fraud to your bank.
This service is available through mobile banking apps, so it is best to double check with your Cardholder Company to see if they have this option.
Identity Theft Protection
Asides from credit card fraud, another thing to be aware of is Identity Theft. This is when someone has your card number, social security number, or your driver’s license information. With this information, they are able to steal your identity and open cards or accounts and many other things. However, some credit card companies such as MasterCard have identity theft protection programs that you can enroll in.
Once you are signed up for identity theft protection, you will get notified of any alerts if your credit card number, SSN, or any of your driver license information appear on fraud related websites.
Enhanced Account Verification
Most credit card companies now have two factor authentication before being able to access the account. This is when you login to your account and you will be required to have another form of authentication to ensure that it is you trying to access the account. Usually, the company will send a code through email, text or even call over phone to confirm to allow you to continue.
Often times, you can choose the method of contact but it is your responsibility to keep your contact information up to date to ensure you receive the code.
Recovery From Identity Theft
Although there are many safety measures in place to prevent credit card fraud and identity theft, it is not fully preventable. If you happen to be a victim of identity theft, you should report it to the Federal Trade Commission and also place a fraud alert on your records with Equifax, Transunion, or Experian.
If you happen to be a customer of MasterCard, they also offer a service to help identity theft victims. Be sure to notify your card company right away so that they can help you resolve your problem as soon as possible.
Conclusion
In conclusion, credit card fraud and identity theft will always remain a problem, however card companies try to put the best safety measures in place to help prevent these incidents. If you are looking for a new credit card, maybe you should consider into looking at their Fraud Protection and Identity Theft services.
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