A survey shows that the rate of online card fraud has increased. This makes it vital for consumers to take more care than ever of their accounts. Failing to regularly review online activity on your card could result in fraudsters spending thousands of dollars before you realize it.
The survey, by Javelin Strategy & Research, showed that over 7.5 percent of the revenue for online merchants is now attributed to fraud and its associated costs. "As the volume of e-commerce transactions increases, it becomes harder for merchants to discern between legitimate and fraudulent activity," the report stated. Fraud levels are expected to rise further, with Aite Group LLC having estimated that card-not-present fraud will rise from $3.2 billion in 2015 to $4 billion this year. By 2020, it is expected to reach $7.2 billion.
There are several solutions to help crack down on online credit card fraud - one is technology known as tokenization. With this, cardholder data such as expiration dates and card numbers are replaced with a unique number series. Even if payment systems are hacked into, criminals would not be able access card data shielded by the token numbers.
With the amount of fraudulent activity rising, it is important for consumers to review their accounts and credit reports to check for errors. This helps to identify potential issues quickly so that you can recoup stolen money as fast as possible, and keep your personal finances in check.
If you want more credit, check out MoneyTips' list of credit card offers.