Bob Haegele is a freelance writer specializing in topics such as insurance, investing, and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Follow him on Twitter @thefellowfrugal.
Bob Haegele ContributorBob Haegele is a freelance writer specializing in topics such as insurance, investing, and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Follow him on Twitter @thefellowfrugal.
Written By Bob Haegele ContributorBob Haegele is a freelance writer specializing in topics such as insurance, investing, and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Follow him on Twitter @thefellowfrugal.
Bob Haegele ContributorBob Haegele is a freelance writer specializing in topics such as insurance, investing, and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Follow him on Twitter @thefellowfrugal.
Contributor Harlan Vaughn Credit Card EditorHarlan Vaughn is a credit cards editor with over a decade of experience. With a deep understanding of the credit card industry, his passion for travel strategies drives his commitment to helping others maximize their credit card rewards. Harlan's exp.
Harlan Vaughn Credit Card EditorHarlan Vaughn is a credit cards editor with over a decade of experience. With a deep understanding of the credit card industry, his passion for travel strategies drives his commitment to helping others maximize their credit card rewards. Harlan's exp.
Harlan Vaughn Credit Card EditorHarlan Vaughn is a credit cards editor with over a decade of experience. With a deep understanding of the credit card industry, his passion for travel strategies drives his commitment to helping others maximize their credit card rewards. Harlan's exp.
Harlan Vaughn Credit Card EditorHarlan Vaughn is a credit cards editor with over a decade of experience. With a deep understanding of the credit card industry, his passion for travel strategies drives his commitment to helping others maximize their credit card rewards. Harlan's exp.
| Credit Card Editor
Updated: Feb 12, 2024, 4:37pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
C redit card fraud is a major source of financial trouble not only for consumers, but for banks too. According to a 2023 Federal Trade Commission report, credit card fraud was the most common form of identity theft, with over 114,000 reports received in 2023 alone.
The reports said information was misused with an existing credit card or when applying for a new card. In either case, consumers remain at risk of identity theft through their credit cards.
Fortunately, credit card issuers are aware of the problem. There are tools and technology designed to keep you safe when someone tries to make you the latest fraud victim—and you can take protective steps as well.
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Credit card fraud detection is a set of tools and protocols which card issuers use to detect suspicious activity that could indicate a fraud attempt. These tools are generally proactive, aiming to stop credit card fraud before it starts. They also help to prevent financial losses caused by credit card fraud.
Credit card issuers have several ways to detect and intercept fraud by analyzing transactions in real time to identify unusual activities and patterns.
These methods aim to reduce the occurrence of fraud. They also look to avoid false positives, where fraud is detected when making legitimate transactions. Both can be costly for financial institutions and customers, so it’s prudent to prevent them before they happen.
If you shop with a credit or debit card, it’s important to protect your identity and finances. The following precautions can help keep you safe:
If you notice suspicious activity, report it to your card issuer immediately. The faster you act, the better your chances of having fraudulent transactions reversed and preventing new ones.
Credit card issuers use various methods to detect and prevent fraud. Common protocols include:
Although card issuers often use algorithms, there is usually still human involvement. Fraud analysts review flagged transactions and make adjustments to the system as needed.
Credit card issuers have their own fraud detection policies to protect themselves and their customers. Here, we’ll explain how major issuers protect their customers against fraud.
American Express is constantly on the lookout for suspicious account activity. If it spots anything unusual in your spending patterns, you will receive an alert via push notification, text message or email, depending on your preferences. You can then indicate with a single tap or click whether you conducted the transaction.
If you think you’re the victim of fraud, American Express recommends calling its helpline immediately at 800-528-4800 or by using live chat when logged in to your account. If you travel more than 100 miles from home, you may be eligible for 24/7 assistance and coordination services. The company also provides card assistance while you are abroad.
Capital One provides its customers with real-time fraud alerts. You can set alerts for certain types of account activity or for transactions Capital One believes need a second look. If a transaction doesn’t seem right, you can either get more details or dispute it. There is also fraud reporting, which allows you to click “report a problem” on a transaction if there is an issue with it.
Capital One has $0 fraud liability for unauthorized charges, so you won’t be responsible if your card is lost or stolen. The card issuer also has advanced security features, such as facial recognition, fingerprint ID, virtual card numbers and card lock/unlock capability.
Chase monitors accounts 24/7 for fraud and can call, text, or email you if there are unusual purchases on your credit card. It also has Zero Liability Protection, so you won’t be responsible for unauthorized purchases made with your card or account information. Chase recommends calling the number on the back of your card if you see an unauthorized charge.
In addition, Chase’s chip-enabled credit cards provide enhanced security when making purchases worldwide. Lastly, you can lock and unlock your card if you misplace it. Chase recommends updating your phone number in case the issuer needs to contact you.
Citi has advanced security features to help protect your account. For instance, Citi monitors accounts and will flag suspicious activity on your card and may contact you by phone, text or email to confirm the transaction. For select Citi cards, you’ll receive a text message from short code 95686 if the issuer detects unusual activity.
The issuer has a $0 liability policy for unauthorized transactions with consumer cards. Many Citi consumer-card customers can also generate single-use virtual card numbers when shopping online to protect your real card number. If you’ve responded to a potentially fraudulent email, you can send an email to spoof@citi.com.
Discover monitors accounts with proactive fraud monitoring and enhanced account verification. These tools constantly monitor your account and notify you if suspicious activity is detected. However, Discover recommends regularly checking your statement for suspicious purchases. If you find a purchase you don’t recognize, you can initiate a dispute or contact customer service.
If there’s a fraudulent charge on your account, you won’t be held liable thanks to Discover’s $0 Fraud Liability Guarantee. You can verify transactions online or by calling 877-737-1931. You can also freeze your card to stop any new purchases and activity on your account.
