You are here: Information Center >> Credit, Debt Collection, Identity Theft and Fraudulent Transfers >> Credit >> Credit FraudCredit FraudAnyone with a credit card can become a victim of credit card fraud or be saddled with a negative credit report because of fraud. There are numerous ways for thieves to obtain your credit card number and make thousands of dollars worth of purchases without your knowledge. Fortunately, laws limit the credit cardholder's liability to $50. If $1,000 is charged to a credit card account without authorization, the cardholder pays only $50 to the credit card company. SIDEBAR: Federal law does not place a duty upon the cardholder to report the theft or fraudulent charge within any amount of time. TIP: The $50 maximum liability amount is for each card. If seven credit cards are stolen and used, the cardholder's liability would be $450 total. How can I decrease the risk that my credit card will be used without my authorization?You can do several things to prevent card theft as well as someone obtaining the credit card number.
TIP: Instead of signing your name on a credit card, write "photo ID required" so that the store clerk asks for ID. What is a fraud alert?It is a special notice placed on your credit report so that any company asked to give you credit will know your information has been stolen. A thief who is attempting to obtain additional credit cards in your name will not be able to get credit if a fraud alert is in place. Companies must personally authorize credit with you over the telephone. TIP: You must notify the three credit bureaus that your credit cards have been stolen to obtain a fraud alert. Experian Equifax Trans Union If I believe my credit cards have been stolen, should I file a police report?Yes. The report will be useful in proving to the credit card company that you did not authorize any charges after the card was stolen. |