Protecting Your Finances: A Comprehensive Guide to Avoiding Credit Card Fraud

In today’s digital age, credit card fraud remains a significant concern for consumers and businesses alike. According to the Federal Trade Commission (FTC), there were over 214,000 reports of credit card fraud in the first half of 2024 alone. While many credit cards offer zero liability protection, meaning you aren’t responsible for unauthorized transactions, the inconvenience and potential financial impact make it essential to take proactive measures to safeguard your information.

At O1ne Mortgage, we understand the importance of financial security. As a trusted provider of mortgage services, we are committed to helping you protect your financial well-being. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074. Our team of experts is here to assist you every step of the way.

What Is Credit Card Fraud?

Credit card fraud encompasses various types of fraudulent activities involving the use of a credit card. These include:

• First-party fraud: When someone uses a credit card without any intention to repay the debt or claims that a legitimate purchase was fraudulent.
• New account fraud: When someone applies for a new credit card using stolen personal information.
• Existing account fraud: When someone uses an existing credit card account without the cardholder’s permission.

The FTC primarily focuses on new account fraud and existing account fraud, classifying these occurrences as a type of identity theft.

How Credit Card Fraud Happens

Criminals employ numerous methods to obtain account information or fraudulently open new credit cards. These methods include:

• Stealing cards: A criminal might steal a physical credit card and use it before the cardholder reports the theft.
• Card skimming: Criminals install skimming devices that copy information when you swipe or dip your credit card at a terminal.
• Phishing: Fraudsters send phishing emails to trick you into sharing your login credentials or credit card information.
• Taking over accounts: Criminals attempt to take over your online account by guessing or tricking you into sharing your login information.
• Using stolen card account info: They might steal, guess, or buy stolen credit card information to create cloned cards or shop online.
• Stealing or creating identities: Criminals buy or steal your personal information to apply for a credit card in your name.

Credit Card Fraud Statistics

The FTC collects reports from consumers and data contributors, such as the AARP Fraud Watch Network and states’ attorneys general. The FTC’s findings include:

• Credit card fraud reports decreased from 2022 to 2023, with 426,045 complaints in 2023, down 5% from 448,470 in 2022.
• Reports of fraud decreased again in 2024, with 214,607 complaints in the first half of 2024, down about 4.5% from 224,304 in the first half of 2023.
• Credit card fraud is most prevalent among individuals aged 20 to 50, with a peak for those aged 30 to 39.

How to Avoid Credit Card Fraud

While credit card fraud is relatively common, credit cards remain a safe payment option due to zero liability protection. However, there are steps you can take to avoid credit card fraud and identity theft:

1. Don’t share your information when contacted: Avoid responding to texts or emails asking for your credit card or personal information. If you’re concerned, contact the card issuer using the information on their official website or the back of your card.
2. Keep your online accounts secure: Use unique passwords for your online accounts, especially financial accounts. A password manager can help. Enable multifactor authentication when available.
3. Be cautious when shopping online: Avoid entering your card info on suspicious websites. Look for unusually low prices and typos in the URL.
4. Use contactless payment options: Tapping your credit card or using a digital wallet can protect your card’s info from skimming devices.
5. Update your devices: Keep your computer and mobile devices updated with the latest security patches to prevent malware from stealing information.
6. Add a security freeze to your credit reports: You can add a security freeze to your credit reports from Experian, TransUnion, and Equifax for free. This limits access to your credit reports and can prevent new accounts from being opened in your name.

Monitor Your Accounts and Credit Report for Fraud

Regularly monitoring your credit reports can help you quickly spot credit card fraud. You might receive alerts for new hard inquiries or new credit accounts. By catching these early, you can report the fraud before the fraudster uses the card.

At O1ne Mortgage, we prioritize your financial security. If you have any mortgage service needs or questions about protecting your finances, call us at 213-732-3074. Our dedicated team is here to provide you with the best service and support.

Conclusion

Credit card fraud is a persistent threat, but by taking proactive measures, you can significantly reduce your risk. Stay vigilant, secure your accounts, and monitor your credit reports regularly. At O1ne Mortgage, we are committed to helping you achieve financial security. Contact us today at 213-732-3074 for all your mortgage service needs. Together, we can build a secure financial future.