Categories
This Could Be You
I was recently the victim of fraud on my personal credit card and one of my personal checking accounts. The first fraud effort was identified on my credit card. About ten days later, the thieves were able to access one of my bank accounts. Needless to say, this problem was highly distressing.
As many readers may know, a credit card is considered one of the safest means of conducting purchases. A credit card is safer than hand-written personal checks or debit cards because you are only responsible for the first $50 of credit card fraud, after which the credit card issuer takes responsibility for recovery.
In my case, my credit card was primarily used fraudulently at casinos across the U.S.—Nevada, New York, Texas, and other states. However, under regulations like the Fair Credit Billing Act (FCBA), if a merchant processes a transaction without proper authorization (e.g., fraudulent use of a stolen card number), the cardholder is protected. In my case, VISA went to each merchant that received funds without proper authorization and retrieved the stolen funds.
Unfortunately, the thieves were also able to access one of my personal bank accounts and stole a substantial amount of money. Fraudulent purchases ranged from $3.00 to several thousand dollars. Fortunately, in this case, my bank was able to recover most of the lost funds. However, because this process took several months to get worked out, damage to my credit rating from a variety of related factors was pretty significant. But with every recovery, my credit rating is improving over time.
I am sharing all of this to encourage everyone to be diligent when using your credit cards, to register with LifeLock™ or a similar credit security firm, sign up with your bank for text alerts related to your account activity, and to proactively establish online accounts with Experian and TransUnion. Most of all, remain diligent—pay attention to your statements and alerts from your bank and credit card issuers. Be sure to investigate any charges or activity you don’t immediately recognize and the reasons for any changes to your credit rating.