In today’s digital age, we expect technology to make our lives easier. But with every step toward progress, people always look to use it for their own gain. Recently released data from the FTC reported that in 2023, consumers lost over $10 billion to fraud. It’s a shocking new high.
And just when you thought it couldn’t get worse, it did. There was a massive data breach at National Public Data. It exposed the personal information of millions of Americans, including their SSNs, emails, and addresses.
Credit card fraud is a significant risk with personal information floating around online. As nurses who constantly juggle multiple responsibilities, it’s critical that you know how to protect your credit card from hackers and fraudsters.
In this post, I’ll share practical ways to protect your credit and personal information.
Key Takeaways
Record Fraud Losses: Consumers lost over $10 billion to fraud in 2023, highlighting the growing risk of identity theft.
Major Data Breach: Millions of Americans’ personal info, including SSNs, were exposed in a National Public Data breach.
Credit Card Fraud Explained: Common scams like card-not-present fraud, account takeovers, and phishing put your financial security at risk.
Protect Yourself: Learn practical steps to secure your credit, such as updating passwords, avoiding public Wi-Fi, and using two-factor authentication.
What is credit card fraud, and why does it matter?
Credit card fraud is a form of identity theft. It is the unauthorized use of a credit card or its information to buy goods, services, or cash. This is done without the account holder’s consent. The most common types of credit card fraud are:
Card-Not-Present Fraud which is when someone uses your credit card info to buy things over the phone, by mail, or online. The card itself isn’t physically present.
Credit-card-present fraud occurs when a credit card is physically stolen, or a copy is made by skimming, all to make unauthorized purchases.
Account takeover refers to when the scammer gets the details of your online bank account. Then, they can change the account address, request a new card, and use it for fraudulent activities.
Application fraud involves someone using stolen or fake information to apply for a credit card in your name. Then, the account is maxed out, leaving you in debt.
Phishing is when a scammer uses email, text, or phone calls to trick someone into giving their credit card information by pretending to be a legitimate company.
Skimming occurs when a device that scans your credit card info is placed on top of card readers at stores or ATMs.
Protect yourself from credit card fraud
Taking the proper steps to secure your finances will save you a major headache (and money). You can do this by…
1. Updating Your Passwords. Change your passwords often. Make each one strong and distinctive. A strong password typically includes letters, numbers, and special characters. Don’t reuse passwords across accounts. It makes you more vulnerable to hackers.
2. Always Sign Out After Use. Whenever you use an account, sign out. This simple step can prevent unauthorized access, especially on shared or public devices. Even if you’re on your personal device, it’s a good habit to get into, as it adds an extra layer of security.
3. Be Cautious with Public Wi-Fi. Public Wi-Fi is convenient but less secure. Avoid logging into sensitive accounts or making purchases on public Wi-Fi. Hackers can exploit these networks. If you must use public Wi-Fi, consider using a VPN to encrypt your connection.
4. Protect Your Credit Card Info Over the Phone. Only share your credit card details if you’re sure of who you’re speaking with and if you initiated the call. If you get an unsolicited call for your info, hang up. Then, call the number on the back of your card to confirm the request.
5. Enhance Your Security with Extra Measures. Use two-factor authentication (2FA) whenever possible. This adds a step to the login process and requires a code and password sent to your phone or email. Also, set up purchase alerts. You’ll be notified of any transactions, which will help you catch unauthorized charges quickly.
6. Stay alert for phishing scams. They often come via emails, texts, or links from unknown sources. They pretend to be legitimate companies or individuals. Be careful about clicking on any links or downloading attachments from unfamiliar senders. If something feels off, it probably is—delete the message or report it.
7. Keep Your Physical Card Safe. Store your physical credit card in a secure place where others cannot see or reach it. Whether at home, work or while traveling, make sure your card is in a safe location where it can’t be easily accessed or stolen.
8. Be Wary of Saving Card Information on Websites. It’s convenient to save your card information on sites you use often. However, it can be risky if the site’s security is breached. Consider manually entering your payment information each time, especially on less-familiar websites.
9. Limit the personal information you share on social media. Scammers can use your social media info, like your birthday or pet’s name, to access your accounts. Be careful what you post. Adjust your privacy settings to limit who can see your details.
10. Review your bank statements. Check your bank and credit card statements regularly for unusual or unauthorized transactions. Even small, unfamiliar charges can be a sign of fraud. Report any irregular activity to your bank immediately to prevent further unauthorized activity.
11. Consider Using Virtual Cards for Online Shopping. Many banks now offer virtual credit cards, which are temporary numbers for online purchases. These virtual cards can add protection, keeping your real card number safe from online threats.
12. Only enter your card info on secure websites: Look for URLs that start with “https://” and a padlock icon. These indicate that the site is using encryption to protect your data.
How to recognize signs of credit card fraud
- Unrecognized purchases: you see unknown transactions on your account.
- Unexpected Bills: Receiving bills for items or services you never purchased.
- Calls from debt collectors: A debt collector calls about a bill you don’t recognize.
- Unknown Accounts: You find an account opened on your credit report that you don’t recognize.
These signs all indicate suspicious activity and should raise a red flag.
How to report credit card fraud
Contact your bank right away: Call the number on the back of your card to report the fraud immediately.
Change Your Account Passwords: To prevent further unauthorized access, update your passwords regularly.
Report the Fraud: Document the fraud by filing a complaint with the authorities.
Check Your Credit Report: Watch for suspicious activity or new accounts.
Consider Freezing Your Credit. If needed, freeze your credit to stop fraud. You do this with the 3 credit bureaus: Experian, Transunion, and Equifax. When you place a credit freeze, creditors are prevented from accessing your account. This way, no new accounts will be approved in your name, whether fraudulent or legitimate. The freeze will need to be lifted anytime you need a credit check.
Dispute Unauthorized Transactions: Contact your bank to dispute and remove any fraudulent charges.
Bottom Line
In a world where digital threats are becoming more common, taking proactive steps to protect your credit is essential. Staying cautious, tracking your accounts, and knowing how to respond to fraud will protect your finances. Act fast at the first sign of trouble. It’s better than facing the consequences later. Stay informed, stay secure, and protect what’s yours.