Credit and Debit Card Fraud
I'm sure, that like me, you own and use one or more credit / debits card, and again, like me, you've probably experienced some kind of fraud. Well, you're not alone, as a new report highlights that millions of other people around the world are impacted by card fraud ever year. However,I thought that Chip and Pin cards were meant to make credit card use much safer, but is that strictly true?
Since card useage exploded in the 1980s, there has been a massive increase in the use of credit, debit and pre-paid cards internationally. According to a 2016 Nilson Report, during 2015, more than $31 trillion were generated worldwide by credit and debit card payment systems. That figure was up an impressive 7.3% on 2014. But of course the big explosion has been in online transactions. In Europe in 2015, seven out of every eight purchases were made electronically.
Astonishingly, with all the technology being deployed by merchants, banks and and card companies, card fraud is on the up and up. Worldwide losses from this form of fraud rose to $21 billion in 2015, up from about $8 billion in 2010. By 2020, that number is predicted to reach a staggering $31 billion!
But there is some good news, Identify theft has been on the decline for the past two years. Identity crimes fall into two categories: Card fraud, which I discussed above, and is where someone steals your credit card or debit card number and uses it to make purchases. It's more than a little annoying, but you can usually recover any losses. New account fraud, can be far more damaging. In this case someone uses your identity to take out a loan,
Becoming aware of New Account fraud is the big issue. It can talk months for you to be made aware of the new unauthorised debts which are now in your name. This potential delay allows fraudsters to use your identity for other illicit purposes such as applying for a job, or filing for your tax refund.
I guess if there is a message here, it's use your cards carefully and if online, then ideally on sites that you know are reputable. And also, enlist the help of one of the credit monitoring companies. That will probably ciost you money, but may save money in the long run.