Identity fraud is a topic we’ve covered a bit, but many cautious credit users will wonder what banks are doing to protect them from potential theft. With millions of online purchases conduct every day, customers are understandably concerned about the potential for fraud when information is so readily available. However, as scams become more sophisticated so do the security measures and banks are now more capable of stamping out fraud in its tracks than ever before. Below are four common credit card activities associated with fraud that could potentially raise alarm bells in your bank.
This doesn’t necessarily have to be physical shopping as it could refer to online purchases as well. Banks have a list of fraud prone areas scammers often make purchases from, so when a purchase is made in those questionable locations it immediately raises a red flag. In most cases the bank will freeze the account and make contact with you to confirm the purchase before allowing the card to be used again.
A common trick from fraudsters is to use your credit card details to make a small purchase first in order to test its validity. If your bank or credit card facility identifies the same small payment with other cases of fraud they will take action straight away and freeze your card.
Multiple purchases from different locations around the world will often be a common indicator that your card or information has been stolen. If your bank identifies these purchases as potential fraud they will freeze your card as a precaution. That means even honest transactions from different locations online can result in action from the bank if they deem the activity to be suspicious.
Unusual activity on your credit card is probably the biggest giveaway to banks that something is wrong. The banks have access to your purchases and are completely aware of your spending habits so if they identify something out of the ordinary is occurring they will look to stamp it out before it spreads. For example, if you use your credit card purely to pay bills every month or quarter and all of a sudden the bank notices an online spending spree, it’s highly likely your account will be frozen by the days end to address the suspicious activity.
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More people engage in ecommerce every day and unfortunately scammers are developing more sophisticated scams to target the vulnerable. It’s important you always keep track of the purchases you make and flag anything suspicious should the bank miss it. Having your account frozen for the wrong reason can be frustrating, but your credit facility is looking out for your financial safety and it’s always better to be safe than sorry.