What is credit fraud?
One of the most common forms of credit fraud is committed by ‘stealing’ the identity of another individual. Someone obtains your identity details and uses them to obtain credit for themselves, leaving you with the potential liability for this debt, a damaged credit reputation and the inconvenience of amending your credit file.
Credit fraud, also referred to as identity fraud, identity theft, and account takeover fraud, is a rapidly growing type of consumer credit crime. Criminals steal victims’ identities in order to take over their credit accounts. This results in losses of up to $3 billion a year. Monitoring your credit file has so far been the most successful response to credit fraud. Criminals employ a variety of ingenious methods–from raiding mailboxes and trash containers to high-tech eavesdropping–to illegally obtain credit information. Then they use it to receive numerous high-limit credit cards in the victim’s name. The perpetrators use the credit cards liberally, charging thousands of dollars of merchandise quickly, then abandon the cards. The victim whose credit history was used to obtain the cards is left to clear up the damage to their credit reputation. Protect your Social Security Number Do not print your Social Security number on your checks or give it out unless absolutely necessary. Ask c
It is possible for thieves to cheat you and the people who give you credit. They might steal your credit card and run up a big balance. The more serious damage however is done by using your personal information to obtain and use a credit card or loan. Unless you check your credit report or find that you are denied credit, you may not even know that someone has entered your financial world as you, but for their own benefit. Your credit history can be damaged forever.
When someone commits credit fraud, or credit card fraud, they are using someone else’s credit card or credit card number to obtain money or merchandise fraudulently. There are many ways to commit credit fraud, and the perpetrator does not necessarily have to be using a stolen credit card to be committing the act of fraud. When credit fraud is committed using a stolen card, it is also considered to be a form of identity theft. Acts of credit fraud have costs that easily reach billions of dollars every year worldwide. In its most simple form, credit fraud is simply the act of using someone else’s credit card or credit card number in order to obtain goods or money. Since the beginning of credit cards, there have been thieves whose sole purpose is to steal them for their own gain. The issue of credit fraud became more complicated with the ability to purchase items or services without needing the physical credit card to buy them, for instance by using a credit card number to make a purchase
