What Is Credit Card Fraud,
By
Easy Tips
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Tuesday, 24 July 2018
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Credit Tips
The widely popular Debit card/check cards offered by almost all banks have become the standard way to pay for everything from itunes music to rental cars. Where the government states that debit card transactions have grown more than 20 percent a year and have out grown more than all credit card transactions.
As there appeal is very understandable. As Debit cards are quick and easy to use. But using a debit card can cost you hundreds and even thousands of dollars a year, no really. So I will show you why you should never carry the evil debit card. First you must understand that all U.S.
662 million to debit card fraud in 2005. Now guess what all these banks are trying to do, They are trying to recover this money that is being lost. You would probably be safer to just carry cash. Although you really don't have much support if your card is lost or stolen, but at least your losses are limited to the amount of the missing money.
With having a debit card you will put your entire bank balance this is in your bank account at a high risk. If you connect your checking account to your savings account in a attempt to avoid overdraft charges, you put the balance in both accounts at risk, as you will face severe overdraft charges. 50. In which you may not even be obligated to pay that much, as these financial institutions will not impose any charges on their defrauded customers.
And while the case of fraud is being investigated, you can refuse to pay any part of these unauthorized charges. But the evil Debit cards fall under a very different set of laws, known as the Electronic Fund Transfer Act. 50, it is a must that you notify your bank within two business days after discovering that you're debit card has been lost or stolen. 500. So if you happen to miss that deadline, there is a good chance that you could lose all of the money in your bank account.
Because the debit card accesses the fund directly out of your bank account, you can be left without your grocery money while the fraud claim is being investigated. Now this is stupid! A single trip to Burger King was enough to send Tom Martin's checking account into absolute freefall. Where Tom had made the mistake of paying for some fast food with his debit card.
3 more than he had in his bank account. 350 in overdraft fees. 35 per charge, it's easy to rack up hundreds of dollars in needless NSF fees. 8 billion dollars each year. I can remember a few years age when banks would refuse any debit card transactions that would overdraw a customers account.
But not any more. As banks could warn depositors when their accounts are close to being overdrawn. The Center for Responsible Lending estimates that Banks that offer these lending programs can expect an drastic increase in overdraft revenues, as much as 200 to 400 percent per year. With it being calculated as an interest rate, rather than a fee, the cost of these loans is ridiculous. 14.75. But the average over draft fee is more than double that amount.
According to the agency, most consumers only use these loans for a few days. So on an overdraft loan, the annual percentage rate can be as high as a WOPING 20,000 percent. In defense of this practice, I consider to be financial rape, the bankers like to point out that it's the responsibility of the account holders to monitor their account balances and avoid overdrafts. Which is ridiculous but, of course, that requires the account holder to know how much money is in their account. Which is the reason why we trust banks to hold our money for us but instead the choose to take us for every hard earned dollar that we have.
Have you ever been a victim of credit card fraud, If so, you know just how traumatic it can be. What's more, if you don't detected it early enough, it could leave bad marks on your credit report that could haunt you for many years. The most commonly thought of credit card fraud is when your wallet or purse is stolen, and the thief uses your credit cards to make unauthorized purchases.
But, with the increasing rate of online buying, another form of credit card fraud--known as misappropriation--is spreading like wildfire. These days the only thing a thief needs to create havoc on your credit life is your credit card number--not your actual card. Don't ever give out your credit card number to anyone who calls you. Only provide this kind of information if you have called the company to place an order, and you are positive that it is a well-established reputable business.
You find that someone has gone through your trash. Then when you receive your credit card statement, you find that there are dozens of unauthorized charges. Always tear up your credit card receipts and bank statements before putting them in the trash. Better yet, buy a paper shredder from a local office supply. Many thieves go through unguarded trash bags specifically looking for your credit card staments. You go out to eat in a restaurant and pay the bill with your credit card.
On your next credit card statement, you notice that there are unauthorized charges that started the same day as your restaurant meal. It turns out that the waiter made an extra imprint of your card when he rung up your bill, and then used the number to go shopping. Many restaurants have placed their credit card processing centers in plain view of the customer's sight to combat this problem.
If not, you could follow the waiter to the charge station, and watch him throughout the process. It's also important to make sure that they know that they are being watched. You may be wondering if there are other measures that you can take to make sure you aren't a victim of credit card fraud,