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8/25/17 at 01:07 AM 0 Comments

Credit Card and Debit Card Fraud- It's Common, but You're Safe

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Even in an age of PayPal, Skrill and other online payment methods, credit cards and debit cards are still the main way for people to make purchases online. There is a certain degree of security and peace of mind that they bring and that’s one of the main reasons why. There are more issues are fraud and scams taking place with methods like PayPal than with credit cards and the latter give you solutions to such problems if they do occur.

But make no mistake, these methods are still commonly abused and the levels of fraud taking place with regards to credit cards and debit cards is still huge.

Credit Card Fraud

Credit cards are more commonly defrauded, mainly for the purpose of taking money from the victim’s account, but also for stealing their identity. According to official stats on credit card fraud nearly half of the world’s total fraud cases take place in the United States.

In fact, the US is also responsible for many fraud that takes place elsewhere, either because they were the ones leaking the info or because they were responsible somewhere else down the line. In the UK, there is a 1 in 3 chance that every case of credit card fraud will be linked to the UK.

Every year around 30 to 35 million Americans will have their credit card data stolen. If you have ever been frustrated at the fact that police don’t seem to care when this happens and that they treat it as an issue for your bank, this is why. That’s a lot of cases, a lot of fraudsters and a lot of man hours. It’s also a lot of money, with the minimum cost to the bank being $12.75 per case (for the cost of a replacement card) and the total cost (for the money refunded) being much higher.

Debit Card Fraud

Debit cards used for gaming are the most commonly defrauded and they also have some of the highest levels of debit card fraud, albeit not as much as ATM fraud, whereby scammers insert card readers so that they can steal the details of unwitting users.

There is a belief that you have no recourse for action if you are a victim of debit card fraud and this is slowing down use. Many users will rather take a hit from the charges levied against credit cards than use their debit card. However, these cards are typically very safe to use online and the vast majority of banks will still return any money that has been taken fraudulently.

If they do not, then the victim has a case against the bank and can usually get their money back either way.

The truth is that there is always going to be a high level of threat with regards to fraud. But debit cards remain a sound option, as do credit cards. And unless something drastically improves with regards to online payment methods, they will continue to remain the best solution.

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