Unauthorized Use of Credit Card By Family Member. How to protect it?
Imagine connecting your credit card to a game on your child’s phone for convenience. Within a few days, you will find that thousands of payments have been transferred to your card. Your child may not know that you have authorized these payments while playing the game. Your in-game account may have been the target of a scam. Either way, you now have to deal with huge credit card bills.
In some cases, it can be difficult to determine if a withdrawal is unauthorized, a “fraud,” or an issue that needs to be addressed. Bankrate spoke with several lenders to see how consumers can tell the difference and protect themselves.
Suppose there is a charge on your credit card that does not belong to you. You need to contact your bank immediately, inform them of this, and cancel the card. In this article, we will discuss how to deal with such cases.
What is an unauthorized charge?
In general, unauthorized credit card charges are claims you did not make and did not explain. Frequently, an unauthorized charge is discovered when someone looks at their credit card statement and discovers a charge they didn’t. For example, you might see a purchase from a store you’ve never been to, or you might see payments made repeatedly without you even realizing it.
“In this case, someone knew your account number and used it without your permission,” said Beverly Harzog, credit card expert and consumer finance analyst at US News & World Report. That’s why I agree it’s a good idea.
In such circumstances, usually, they offer liability to most of the credit cards. This built-in fraud protection is one of the biggest benefits of using credit.
Common Types of Unauthorized Credit Card Charge
Credit card scammers are trying methods as old as credit cards, using new technology to get your credit card number and PIN. Credit card fraud techniques include:
Stealing a card from a restaurant, bar, or wallet (or simply stealing a wallet or entire wallet) is a classic way to access someone else’s credit card. Taking the newly issued card out of the mailbox is a variant of this trick. If you are notified that you do not have a card or that you should have received a card that did not arrive, notify your card issuer immediately.
With this approach, your account is controlled so that an attacker can contact your card issuer and use your personal information to change your access PIN, password, postal address, etc. Depending on how often you use your card, it may take longer and take longer to get to know your card issuer. Some credit card companies may set up verbal passwords to prevent this form of theft.
A device called a “skimmer”, located on top of card readers at gas stations and retail terminals, allows thieves to swipe the card to confiscate the card number and then make a copy for illegal use. EMV chip cards made this process much more difficult.
Unusable card theft:
Indicates fraudulent use of credit card accounts that do not require the physical card to be in possession. It mostly happens in the case of online shopping. The thief only needs to know your name, account number, and card security code. In recent years, millions of users reported their data breaches from retail stores. Moreover, companies that maintain large databases of card numbers and illicit website traffic from vendor data listings.
How to deal with unauthorized use of credit cards?
Here are a few things you need to consider when your family members misuse your credit card.
1. Contact your bank immediately
You may be eligible for a refund if an unauthorized payment has been charged to your bank account for your online, phone, television, or Teletext purchase. Usually, the bank has an investigation team to investigate for you. If you claim that you did not authorize card use, your bank must prove otherwise. The bank may cancel the payment or return the money to your account. If the credit card company does not return the money, report it to the Trading Standards.
2. Review your bank statements
Whether you receive it online or in print, review your card statements monthly and watch for unexpected purchases or cash advances. If you have an unknown purchase, contact your card issuer immediately to dispute the charge.
3. Initiate an investigation
Check your credit reports from all three national credit bureaus (Experian, TransUnion, and Equifax). You can download the report for free at AnnualCreditReport.com. When receiving the report, look for unfamiliar inquiries (credit checks related to new loan applications) and unopened loans or credit card accounts. If you see anything suspicious on your credit report, use the contact information on your credit report to notify the lender. They can provide additional information, initiate an investigation, and ultimately notify credit bureaus about your deleted account. You can also challenge your credit report if you believe it contains inaccuracies.
4. Appeal for claim
The process for appealing a claim is relatively simple. You can call the card issuer at the number on the back of your card. Some card issuers also offer online dispute resolution. In any case, prepare yourself to share information about the amount and date of unauthorized payments and any other data you may have. Suppose the card issuer suspects that an attacker has stolen your account number. In that case, they will most likely close the original card and send you a new credit card with the new account number. If investigation companies reveal that your claim is false, you can not get the returns.
Credit card issuers offer irresponsible protections to protect your account from misuse by outsiders, but this generally doesn’t apply to family and friends. Of course, the best way to avoid default on a loan is to prevent others from borrowing your credit card.
- Half of current or past credit card owners allow someone else to use their card.
- Excessive spending was the most common problem reported by people who had others borrow their cards.
- Half of the cardholders allow close relatives to charge more than $ 100 from their card.
If you need to give someone access to your credit card, make sure they’re the one you trust. Nevertheless, monitor the record to verify all of your purchases.