Credit Card Fraud Investigation

Types of Credit Card Frauds and the Process of Fraud Investigation

Credit card frauds are becoming increasingly common and prompt action is required on the part of both credit card issuers as well as consumers to check this problem. Here is a list of different types of credit card frauds and the steps you should take in a credit card fraud investigation.

Different types of credit card frauds include:

Skimming: This is the most common type of credit card fraud. The offender uses a small device known as a skimmer to duplicate all your credit card information. The device being very small can be easily concealed and this type of fraud can take place even during a normal business transaction, without your knowledge.

Account Takeover: In this case, an impostor gets in touch with your bank and requests a new card as well as a change of address, pretending to be the genuine holder of the credit card.

Carding: In this type of credit card fraud, a stolen credit card is authenticated, usually for an online purchase.

Phishing: Here the fraudsters use authentic looking mails to persuade people to visit a fake website and submit all their account information.

Application Fraud: In application fraud, an imposter uses stolen information to open an account with the victim’s identity.

Friendly Fraud: Here the real account holders commit a fraud by making an online purchase with their cards and filing a non-delivery claim in spite of receiving the product.

When faced with any type of credit card fraud, prompt steps for proper credit card fraud investigation are required.

Quite often, the victim of a credit card theft is unaware that he has been victimized. Make sure that you review your monthly credit card statements and look out for any unauthorized charges. In the case of any discrepancy, check if the transaction is an oversight or an illegitimate one. If your suspicions persist, inform the credit card issuer right away.

When contacting the credit card issuer, ensure that you note down the time as well as names of the representatives with whom you interact. Find out about company policies in case of credit card theft. The complaint of fraud should be filed in writing as well.

The next step is to notify all three credit bureaus about the fraud and request addition of a credit card fraud alert to your credit file. Ask for a credit report from all credit bureaus and request the bureaus to security freeze your account. Also, make sure that you destroy your card and change all the passwords as well as security questions.

A complaint should be filed with the FTC and the affidavit notarized. Keep a record of all the exchanges with the issuing company, law enforcement authorities and the credit bureaus.
On conclusion of credit card fraud investigation, get the resolution statement and the statement of release from fraudulent debt. These statements should be sent to all the credit bureaus. By taking prompt measures in this manner, you can ensure minimum damage due to the fraud and discharge from fraudulent debts. This will also make sure that your credit score is not adversely affected due to the fraud.

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