Credit Card Fraud

An Alert A Day Keeps The Fraud Away

in Financial Planning by

It’s in the headlines every week: another major retailer has been hacked and given up your credit cards or other personal identity information. Were you one of the 53 million people that got a letter from Home Depot, apologizing for turning over your email address to identity thieves?

According to Federal Trade Commission (FTC) data, almost 20% of Americans have been subject to card fraud, either with your credit card or debit card.

Identity theft and financial fraud are rampant, but we think we’ve found a better way to protect consumers.

YOU ARE PROTECTED IF YOU ACT QUICKLY

The sooner you report the loss, theft, or fraudulent use of your credit card, the more protection you have.

Under the Fair Credit Billing Act, credit cards have excellent protection for consumers. If you lose the physical card, your liability limit is $50. And if only the card number is stolen, which is the case in most of the merchant breaches (Target, Home Depot, etc), the cardholder has *no* liability according to the FTC. So, if you are a credit card user, you can relax about fraud. Instead, worry about other things, such as making sure that you pay your monthly balance to avoid those godawful finance charges.

Debit cards, although a smart money management tool, have slightly less fraud protection than credit cards. Once the money is debited from your account, it’s incrementally harder to retrieve. A credit card company serves as a line of defense for your money.

Under the Electronic Fund Transfer Act, the cardholder liability is limited as follows, based on when the cardholder reports the problem:

  • Before any unauthorized charges are made: $0
  • Within two business days of learning about the loss or theft of the card: $50
  • More than two business days, but less than 60 calendar days after getting your statement: $500
  • More than 60 days after your statement is sent: Unlimited

The bottom line: As soon as you think there is fraudulent activity happening on your card, call your credit card company to report the issue.

SO, HOW DO I KNOW THAT MY CARD HAS BEEN STOLEN?

Since the onus is on you to report the card theft, how do you know the card has been stolen? In general, you don’t know it has been used until an unauthorized transaction shows up on your account.

You’d probably sleep a lot better at night with an easy-to-use service that could simply tell you what transactions were occurring for all of your credit cards, debit cards, and bank accounts that could deliver this information in one easy package, via a website, or mobile app, or email.

The good news is that we have built this at Personal Capital, and it is completely free!

When you link your accounts at Personal Capital, we have a full suite of transaction monitoring capabilities included in our service:

1) The daily transaction monitoring email. We have an opt-in daily or weekly email service that shows all transactions across all accounts for each day. I make it a habit to do a quick scan of mine every morning and if everything looks okay – great, I am off to another worry-free day. Simply go to Settings and click Daily, Weekly, or both.

Credit Card Fraud Alert

2) The Cash Flow page on our web dashboard and mobile apps. This shows you the list of all transactions across all your accounts, across a selectable time range.

cashflow-PC

3) “New Transactions” notification on iPhone. We are utilizing the new “notification widget” feature on iOS8 to include a notification of all recent transactions across all accounts. You can scan them here, or with one-touch open our app to see the full set of transactions.

Personal Capital Recent Transactions

LEVERAGE TECHNOLOGY TO KEEP YOUR MONEY SAFE

If you’re worried about credit card fraud, or any type of financial fraud, utilize Personal Capital’s free transaction tool to help monitor your finances. You’ve got enough going on over the holidays. Let us help protect your money, so that you can enjoy the season!

Photo Credit: Flickr Creative Commons, ElHombre

The following two tabs change content below.
Fritz Robbins

Fritz Robbins

Chief Technology Officer at Personal Capital
Fritz is the Chief Technology Officer at Personal Capital, responsible for the architecture, implementation, and operation of our software products and services, and our infrastructure. He is a recognized technology leader in the financial services world, with over 20 years experience in delivering secure financial systems at Internet scale. Fritz holds an M.S. (Computer Science) from Stanford and a B.S. (Engineering) from George Washington.
Fritz Robbins

Latest posts by Fritz Robbins (see all)


One Response

  1. Megan Denyer

    Reducing credit card fraud starts with the human element – specifically – with comprehensive security awareness training. While companies often spend untold sums of money on the latest and greatest hardware and software products, they fail to recognize the importance of training and educating employees on security issues, threats, and best practices. There are a multitude of programs available online, many for free, so there’s really no excuse. Want to stay in business, then protect cardholder data by training your employees on important security issues and threats – it’s really that simple.

    Reply

Leave a Reply

Your email address will not be published.

Disclaimer. This Website may contain links to third-party websites. These links are provided solely as a convenience to you and does not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by PCAC of the contents on such third-party websites. Please be advised that PCAC is not responsible for the content of any website owned by a third party.