Personal Finance (Not Investing) • Credit Card Feature That Enables Fraud

After suffering credit card fraud, you contact the issuer to obtain a new card and shutdown the old number.

Then you receive more fraud, sometimes before the new card arrives. Why? The issuer helpfully sent the new card number to the place where the recurring fraud is taking place. Want to stop that? Good luck.

The Credit-Card Feature That Saves Time, but Can Muck Up Your Bills

https://www.wsj.com/personal-finance/cr ... s-cb322467

I don't care about credit card fraud. Why should I?

Because it's not unusual for an issuer to refuse to remove unauthorized charges. The presumption is that charges on your card were made by you unless you can provide compelling evidence to the contrary, and that isn't always easy or maybe even possible to do. You can of course refuse to pay but then you'll be subject to the usual collection provisions and impact to your credit score, etc.

I guess I'm lucky then. In 30+ years of using credit cards, I've never had that happen.

I have had unauthorized charges many times over 40+ years, but only one that the issuer refused to remove after an investigation. Realistically given credit limits at least the damage should be limited to maybe low-five-figure amounts so whether someone would care about that given the low odds will vary. I've had unauthorized low-four-figure charges that were removed; the only one that wasn't was only a couple of hundred dollars.

Statistics: Posted by tibbitts — Sun Jul 07, 2024 9:35 am — Replies 13 — Views 1100

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