Criminals use check and credit card fraud to steal money.
Check and credit card fraud are two methods for committing fraudulent financial transactions. Credit card fraud is a term that encompasses several criminal acts. Check fraud is a term that refers to several criminal acts involving the illegal use of checks. There is also more than one type of check fraud. If a person is guilty of check or credit card fraud, it means they have committed one or more illegal financial transactions.
Stealing Credit Cards
The oldest form of credit card fraud occurs when a criminal steals your card, according to BillShrink.com. Criminals access cards by stealing purses and wallets or picking pockets. Criminals try to make purchases online or in stores before you realize the card is missing.
Account Takeover
Account takeover is a less noticeable form of credit card fraud. Criminals use this method to change your credit card mailing address. They learn enough to impersonate you on the phone. Once your mailing address is changed, the thief receives your statement. You may not notice you are no longer receiving your statement. Meanwhile, the thief is using your card to commit more fraud.
Check Overpayment
According to a Federal Trade Commission website article, there is an increase in fake check schemes. One of the most common is the check overpayment scheme. You place a classified ad online or offer an item at auction. The scammer buys your item using a check for more than the amount owed. You cash the check and return the difference. In a few days the check bounces, and you are liable for the entire amount.
Writing Bad Checks
If you write a check when the money is not in the bank, you are writing a bad check. This is on purpose, with no intentions of honoring the transaction. A person may open several bank accounts to write bad checks.
Effects
Small businesses are vulnerable to check and credit card scams. When the economy struggles, employees are more likely to commit fraud on the job. Small companies are vulnerable because they often lack the means to detect fraud before it gets out of hand. In the end, everyone pays for check and credit card fraud. Businesses often raise their prices to make up for the money lost to fraud.
