When someone is using your credit card account information or your identity to open new accounts without your knowledge or authorization, this is considered fraud. The consequences of fraud are devastating on the part of the victims; because of the losses and credit damages they have to endure. In response to these shenanigans, credit card companies and financial institutions emphasize to consumers the importance of maintaining the security and privacy of their valuables and identity. Here are some helpful ways consumers can do to detect credit card fraud.
Credit monitoring - prevent id theft
Every year, consumers have the right to access their credit reports for free from the major credit reporting companies. They can request one copy every four months from one of the three credit companies. There are two ways to order a copy of your report – direct request or through online at annualcreditreport.com. What do you have to do with your report, then? Scrutinize it for any unauthorized activities, such as credit cards and new accounts you didn't open. Checking of credit report is a cost-free credit card fraud detection technique, because it reduces your likelihood of accumulating losses resulting from stolen or lost card, or other fraudulent activities.
Choosing credit monitoring services
Services that offer credit monitoring serve good protection against identity theft activities. These services are provided by either reputed credit monitoring firms, financial institutions or banks. They offer credit checks on a daily basis that alerts their clients against any fishy activities happening in their credit. Other upsides of credit monitoring services are providing insurance to repay legal fees or lost wages resulting from fraud or identity theft, as well as giving assistance to clients to help re-build their damaged credit. Though it comes with an annual fee, the benefits consumers can get are numerous.
Fraud alerts – this are provided by credit monitoring services, in which consumers are alerted on changes that happen to their accounts. These include: new accounts opened; changes in address and account name; credit report requests from companies' unusual credit card activities, and changes in credit card balances. This is an effective way to detect fraud because it helps track your credit every day, unlike the free credit monitoring report that you can only request once every four months. Changes resulting from fraud can happen anytime, so alerts consistently give the necessary protection that consumers need.
A credit freeze – Credit freeze are requests made from the credit reporting companies and it also comes with a fee. It is another effective fraud detection tool, because as soon as you ordered a freeze on your credit, it prevents new creditors from accessing your credit report. This means that id thieves cannot open new lines of credit in your name. You'll also get notification so you know when an identity thief is on its works.
Responsible checking of credit card statements and reporting lost cards
Credit card holders must be responsible with everything they purchase using their plastic. It's also their task to check their credit card receipts and monthly statements they receive. This is one of the easiest and cost-effective ways to detect fraudulent credit card activities. All you have to do is keep all the receipts of your purchases and check it against your monthly statements to ensure that no unauthorized charges are made on your account. If you have an online account, the job will be much easier. You don't have to wait for your statement to arrive, because you can check your purchases online to increase your id theft and fraud protection.
Reporting lost cards is also a responsibility of credit card holders. Stolen or lost cards are vulnerable to theft so make sure to report the case immediately before thieves start racking up your credit limit and making large purchases. After reporting the issue, send a formal letter to your credit card company. This will help you curb the problems you may experience resulting from fraud.
Credit monitoring - prevent id theft
Every year, consumers have the right to access their credit reports for free from the major credit reporting companies. They can request one copy every four months from one of the three credit companies. There are two ways to order a copy of your report – direct request or through online at annualcreditreport.com. What do you have to do with your report, then? Scrutinize it for any unauthorized activities, such as credit cards and new accounts you didn't open. Checking of credit report is a cost-free credit card fraud detection technique, because it reduces your likelihood of accumulating losses resulting from stolen or lost card, or other fraudulent activities.
Choosing credit monitoring services
Services that offer credit monitoring serve good protection against identity theft activities. These services are provided by either reputed credit monitoring firms, financial institutions or banks. They offer credit checks on a daily basis that alerts their clients against any fishy activities happening in their credit. Other upsides of credit monitoring services are providing insurance to repay legal fees or lost wages resulting from fraud or identity theft, as well as giving assistance to clients to help re-build their damaged credit. Though it comes with an annual fee, the benefits consumers can get are numerous.
Fraud alerts – this are provided by credit monitoring services, in which consumers are alerted on changes that happen to their accounts. These include: new accounts opened; changes in address and account name; credit report requests from companies' unusual credit card activities, and changes in credit card balances. This is an effective way to detect fraud because it helps track your credit every day, unlike the free credit monitoring report that you can only request once every four months. Changes resulting from fraud can happen anytime, so alerts consistently give the necessary protection that consumers need.
A credit freeze – Credit freeze are requests made from the credit reporting companies and it also comes with a fee. It is another effective fraud detection tool, because as soon as you ordered a freeze on your credit, it prevents new creditors from accessing your credit report. This means that id thieves cannot open new lines of credit in your name. You'll also get notification so you know when an identity thief is on its works.
Responsible checking of credit card statements and reporting lost cards
Credit card holders must be responsible with everything they purchase using their plastic. It's also their task to check their credit card receipts and monthly statements they receive. This is one of the easiest and cost-effective ways to detect fraudulent credit card activities. All you have to do is keep all the receipts of your purchases and check it against your monthly statements to ensure that no unauthorized charges are made on your account. If you have an online account, the job will be much easier. You don't have to wait for your statement to arrive, because you can check your purchases online to increase your id theft and fraud protection.
Reporting lost cards is also a responsibility of credit card holders. Stolen or lost cards are vulnerable to theft so make sure to report the case immediately before thieves start racking up your credit limit and making large purchases. After reporting the issue, send a formal letter to your credit card company. This will help you curb the problems you may experience resulting from fraud.
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