Credit card theft is illegal, and the legal punishment for the first time offense of Credit Card theft is very serious. Credit card theft is just like identity theft; the robber makes unauthorized transactions from the card and uses it to make different purchases. And the payment gets deducted from the original owner. The theft of a credit card can be physical or by just the credit card number. All this type of confidential credit card information is stolen from an unprotected website.
- 1 First Time Offense Credit Card Theft
- 1.1 Common Types of Credit Card Fraud
- 1.2 Stolen Physical Credit Card
- 1.3 When do you face charges for credit card fraud?
- 1.4 How a lawyer defend you in a credit card fraud case?
- 1.5 Punishment for using someone else’s credit card
- 1.6 How to protect yourself from credit card fraud
- 1.7 How are credit card frauds made?
- 1.8 How to prevent credit card frauds?
- 1.9 How credit card frauds are caught?
- 1.10 Who pays for credit card frauds?
- 1.11 How banks prevent credit card frauds?
First Time Offense Credit Card Theft
The normal credit card user doesn’t know the advanced technics of credit card fraud and how credit card fraud works. Lack of technical knowledge and, for general reasons, the credit card user gets accused when normal transactions are done while purchasing items or anything from the market.
Credit card fraud is a dangerous crime, and the higher technical teams of police can easily track credit card theft. This crime can charge high penalties, including years in prison, fines, restitution, etc. If anybody charges a credit card fraud case against you, you need a good attorney to explain your charges and penalties and protect your rights.
Common Types of Credit Card Fraud
Credit card fraud is happening widely in the U.S.; a technically sound person can steal card information to buy goods and services and invade the card amount. It must be understood that there are different types of credit card theft in today’s time. This is common, and much other information is collected from your profile. There are different types of credit card fraud and advanced methods to chase your credit card information. Following credit card frauds include:
- Can change all the login details and take over the existing account
- A person can open a new account with your stolen information
- Doing transactions without presenting the card
- Using a stolen or lost card
- Can use a counterfeit card
- Can use a fake card
Identity Theft Fraud
Identity theft is the most crucial damaging form of credit card fraud; personal information is theft and used for different fraudulent activities. Most of the credit card fraud depends on identity theft. Suppose a bad person steals your personal information. In that case, it will contact the different credit card issuing companies or banks and ask for the address change and can take over the existing credit card ownership.
Data Breach Identity Theft
This generally happens when we use credit cards on different websites for shopping or other purposes. Some insecure websites save and sell your credit card details in the market; the bad person uses that data for illegal activities. The credit card data stored by the issuing company was also hacked and stolen. Then the thief can use the credit card data to purchase anything online.
Stolen Credit Card Imprints
In this technique, when we use the credit card, an impression of the credit card is made on carbon paper. Then the thief takes the credit card information from the carbon paper. This technique is now old, but improved techniques are in the market to steal credit card data. With the help of credit card skimmers, the credit card data is taken from the magnetic stripe of the credit card.
One advanced portable credit card reader in the market. This reader reads the credit card data from people’s purses as they travel on a train or any other public place. One other affixed credit card reader is installed in some specific locations at ATMs or fuel stations. They steal the credit card imprint and use it to make duplicate credit cards; the fake credit card works just like a real one.
Stolen Physical Credit Card
Your physical credit card is stolen by someone stealing your wallet or purse in a crowded place. In this situation, you can also block your card immediately, but if you delay, the thief can make transactions from the credit card, and you can’t do anything in that case.
When do you face charges for credit card fraud?
If you make financial fraud with someone else credit card, intend to take revenge for money, services, goods, etc, and the owner doesn’t authorize you to use the FTC or get the FTC by forget option. In this case, you can face the following credit card fraud charges:
- Representing yourself as the cardholder without permission from the credit card owner
- Doing financial transactions without authorization or permission from the credit card holder
- Making a copy of the credit card and representing yourself as the owner
- Using the credit card FTC as a fraudulent:
- Exceeding the original balance of a D.D. Account or Time Deposit Account
- When exceeding the credit limit of the card
- Taking financial takeover of the credit card as a security or debt
- Using a banking device to deposit little money to check the balance of the account or money order that is not yours
- Getting money, services, and goods different from yours against the counterfeit check, draft, or money order deposited through the banking device.
- Taking a wrong statement by your name, financial condition, occupation, assets, or liabilities.
- Forcefully overvalue your assets, and undervalue your indebtedness to get FTC from the issuer bank.
- Publishing a false notice or report of theft, loss, or nonreceipt of your FTC.
Employers who receive FTCs for goods and services will also get charges if they intend to defraud their customers by:
- Getting money, services, and goods for a forgotten, revoked, expired, or stolen credit card.
- Forcefully trying to make a double transaction to get money, services, and goods by saying that the transaction has not occurred.
How a lawyer defend you in a credit card fraud case?
The result of the case depends on your case and how strong your case is based on the proof or documents. Your attorney can defend you based on the real proof documents that you did not made the fraud and that your intention was not to make any fraud.
Another way to defend yourself is to say that the police don’t have any strong evidence or proof to arrest you. If you successfully prove this, then the other charges also get disbursed. You are fully safe if the charges and evidence are found unlawfully.
Punishment for using someone else’s credit card
Texas fraud laws say that if a person uses another person’s credit or debit card for his benefit without knowing the cardholder. This comes in abuse offenses, and doing such a practice is not legally entitled.
If someone allows you to use their credit card, you will not face any legal action. You can face serious legal action if you steal, swipe, or try to use the credit card without knowing the cardholder.
How to protect yourself from credit card fraud
Regarding credit card fraud, according to federal law, your liability is capped at $50 if you timely report the unauthorized charges to the card issuer bank or a company. As you also know, most credit card issuing companies offer zero liability fraud policies, and you don’t have to panic if your card is stolen or lost. You must call the issuer bank and say your credit card is lost or stolen. The bank automatically takes action on the card and immediately blocks the card, and no one can make transactions from the card.
Sometimes credit card loss becomes very serious if you don’t intimate the bank about the credit card loss, and it can become a nightmare for you. You have to block the card immediately, and later, you can apply for a new credit card, and the bank issues a new one. Financial fraud is increasing day by day in the U.S., so it is advisable to reduce the risk of fraud by following simple steps:
Follow good safety Methods
The popular methods criminals use to steal credit card details are skimming and phishing, as discussed in the above sections. So, you should know how to protect yourself from these tactics. You should use two credit cards to balance the expenses and to decrease the risk of being a fraud. Keep one credit card for autopay and everyday use; the bills and subscriptions get automatically paid. And the second credit card for daily expenses.
By following this strategy, your important bills and subscriptions are paid automatically, and nobody knows about the transactions and details of the payments. Nowadays, a new technology of tokenization is there in smartphone payment apps. These apps give you full protection from the will tokenization system. And you should avoid making transactions at public places like railway and bus stations. And it would help if you did not use public Wi-fi.
Freeze or Block Your Credit Reports
If you think your personal information has been leaked, you should freeze your credit card and report it. By doing this, criminals won’t be able to open new accounts. And if you think that someone has opened the account and making a transaction, then you should immediately file a case to stop these things.
Inform Bank of the Fraudulent Activity
If your credit card is stolen or fraudulent and frequent transactions are made from the card, then you have to immediately notify your credit card issuer that your credit card is stolen or fraudulent. The bank will block the card, which can be reserved if any transactions occur. And the bank will send you a new credit card, and you can enjoy your credit card life.
Pro Tip: Keep records of everything related to a credit card. This will help you at each point, giving you a strong proof to prove your words. I hope you get all the information related to credit card fraud. Have a nice day!
How are credit card frauds made?
The attackers send bulk phishing messages that have fraudulent links and codes. The hackers also send a lot of phishing emails. If you click the link, your money will get debt from the account. This is the major source of credit card fraud online.
How to prevent credit card frauds?
1. While shopping online, ensure the website is original and secure.
2. Don’t share your credit card details with anyone; be aware of phishing scams.
3. Don’t share credit card details via email.
4. Avoid using public Wi-Fi while doing transactions.
5. Check your credit card reports regularly. If any unauthorized transaction happens, report it to the bank immediately.
6. Don’t share the credit card documents with anybody.
7. If you lost your credit, intimate the issuer bank immediately.
How credit card frauds are caught?
The credit card issuing bank has all the details you provided about the fraud to start the investigation. And other details are gathered from the merchant who involves in the transaction. Checking transaction timings, particular time camera recording at the store, checking the IP address of the device used to make the online transaction.
Who pays for credit card frauds?
Most of the time, the credit card holder is not liable for credit card fraud, but someone makes the payment online or offline. So, it’s a genuine question that thief uses a credit card, then who will pay the card bill? The answer is simple the merchant where the thief uses the credit card or the bank that issues the credit card.
How banks prevent credit card frauds?
Generally, the bank installs the EMV chip from the side of the credit card. This EMV chip helps to reduce fraud while doing the transaction because the chip provides a unique code on every transaction. A unique security code is generated for every purchase, so the EMV chip makes it hard to commit fraud.