Thursday, November 7, 2013
The Fight Against Credit Card Fraud
Have you ever been the victim of credit card fraud? ACI Worldwide recently released information showing that one in every four people with credit or debit cards have experienced fraud related to their cards. That’s a shocking number! The study also shows that about half of those who experience fraud stop using their cards for a period of time and begin using cash until they are more comfortable with the system again.
Another finding of the study is that most cardholders would like to be notified as soon as possible after evidence of fraudulent or suspicious activity is identified. Methods for notification which were listed included email, text messages and phone calls to a cell phone.
There are steps that can be taken to reduce the risk of credit card fraud. About 44% of Americans have chosen to write see ID on the back of their cards rather than signing the card. This is an effort to require merchants to look at the customer’s ID to verify their identity; however, the majority of cardholders say that they are rarely asked for their identification in spite of this step. Another option over the long term is utilizing a virtual ID, which could be stored on the customer’s smartphone or tablet device to be shown at the time of purchase to verify their identity. Unfortunately, this is not an idea that has gotten any significant traction with vendors. So, for the time being, keep careful tabs on your credit cards, remind vendors to ask for identification with every customer and review your bills frequently to ensure the charges are your own. Hopefully improvements will be made in the near future to help combat credit and debit card fraud.