With fraudulent use of credit cards on the rise, it is worth knowing what your vulnerabilities are in case this happens to you. It is better to be proactive than reactive. So here are the things that you need to know.

Debit card danger. If your debit card is used in a fraudulent manner or stolen, then there is no protection like there is if it were a credit card. This type of fraud is not covered by the same rules and regulations. Unfortunately, you are out the money and there is no ‘fraud use protection’ on the part of the card issuer. This is chiefly because of the kind of account that it is.

Limited liability. If your credit card is used in a fraudulent manner, your liability for that use is low. If the card is used before you report it stolen, you could owe $50. But as long as you do report it promptly, you will probably be able to get the fee waived. Federal law states that you have no liability if your account number is stolen rather than the card itself. An affidavit (court lingo for written letter) from the issuer that confirms the fraud might be required as well from the card holder.
If there is a dispute about a single fraudulent charge, you will have to notify the card issuer within 60 days of receipt of your monthly statement which contains the charge.

Liability for credit card fraud falls on either the credit card company or the merchant and is based on a few rules. If the merchant obtained a signature, then the credit card company bears the responsibility for the charge. If there was no signature because the transaction took place online, then the merchant is usually the one to bear the cost.

Fraud by opening a new account. This one is more difficult to deflect from being your responsibility. The one thing that you must do in order to help confirm the fraud is to file a police report. Then, it can be used as confirmation that you have not committed the act of opening the account yourself. Normally, after that, then the account is removed from your credit report.

Retain records. You absolutely must have impeccable records of conversations along with written confirmation of anything that you have been told. Having this all in writing bolsters your case in obtaining help to have the fraud expunged from your credit history. Never send any originals to anyone. Keep the originals for yourself and send copies only. Save all of the paper work that you generated for about a year or so.

If you are unable to remove any charges by fraud from your accounts, you can use these as tax deductions (small consolation, but worthwhile nonetheless). Check with your tax preparer for confirmation. You will have to have good records for this as well.

Be persistent. Remember the old axiom “the squeaky wheel gets the oil.” That means that you need to keep pressing your case and prodding those who are able to make decisions to do so in your favor. It is in your best interest to ask for an additional investigation. You might even pursue arbitration. If the lack of response and help is egregious enough, then consider getting your representative from Congress involved. It is worth an attempt.

If you are a victim you learn very quickly to use any and all resources that you can in order to make your case to repair the damage that has been done. Unfortunately, the time involved is unbelievable and leaves you wondering if it might be worth it to just sign on with a credit and fraud protection plan. You make the call.

Marie Jones, Writer for CreditCardFlyers.com

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