Unfortunately, credit card fraud is a growing concern for everyone, including our valued Latitude 32 Credit Union members. The number of fraud alerts and attempted scams is on the rise, making it more important than ever to understand the current trends, the tactics used by scammers, and how you can reduce your risk. With advancements in technology, both fraudsters and financial institutions are constantly adapting, and staying informed and cautious is critical to your financial safety.
The Shifting Landscape of Credit Card Fraud: What Latitude 32 Members Need to Know
Credit card fraud involves the unauthorized use of your card or card details to make purchases or withdraw funds. It can happen in many ways, from stolen physical cards to the misuse of personal information bought on the dark web after being acquired through massive data breaches. Fraudsters might steal your card information by selling you a product they don’t have at a too-good-to-be-true price, open new accounts for loans in your name, or even trick you into giving answers to security questions so they can make changes to your existing accounts without your knowledge. The impact can be more than just financial; it often inflicts terrible stress on victims and can lead to a lengthy struggle for recovery.
Why We’re Seeing More Fraud
Several factors are fueling the increase in credit card fraud. Changes in how we shop, especially the boom in online spending, create more opportunities for criminals. Scammers are also leveraging AI to enhance their schemes, allowing them to target victims at an unprecedented scale. This and other technological methods they have mastered mean they can attempt to open hundreds, if not thousands, of fraudulent accounts daily, far more than in the past.
At the same time, the unfortunate reality of large and too frequent data breaches means more of your personal information is at risk of falling into the wrong hands, giving fraudsters access to sensitive data.
Common Scammer Tactics
Fraudsters employ a variety of cunning tactics to gain access to your financial information. Here are some of the most common ones to watch out for:
- Phishing and Smishing: These are scams where criminals trick you into revealing card details through emails (phishing) or text messages (smishing) that appear to be from trusted sources: your financial institution, a favorite retailer, the government, a shipping company, a relative in trouble, and the list goes one and on. The primary tactic is to give you an anxiety- or panic-inducing message that will pressure you into clicking a malicious link or giving away your information.
- Skimming: This involves camouflaged or hidden devices, called skimmers, usually attached to legitimate card readers at places like gas pumps, retailer checkouts, or ATMs. They steal your card information from getting physical access to your card.
- Card-Not-Present (CNP) Fraud: This is the fastest-growing type of fraud. It occurs when fraudsters use stolen card numbers for online or phone purchases.
- Account Takeover (ATO): Scammers use your stolen personal identifying information (like Social Security numbers or login credentials from data breaches) to take control of your existing accounts, make unauthorized changes, move funds, sell stocks, and more.
Remember: Latitude 32 Credit Union will never text, email, or call you directly asking for your personal account information, full card number, or PIN. If you receive such a request, be highly suspicious. Don’t trust caller ID – it can be spoofed. When in doubt, hang up and call the number on the back of your Latitude 32 Credit Union card directly.
Proactive Steps Members Can Take
Reducing your risk of credit card fraud requires proactive measures. Here’s how you can protect yourself:
- Monitor Your Accounts Regularly: Don’t wait for your monthly statement. Log into your Latitude 32 Credit Union online banking frequently to check your account and credit card activity. Catching suspicious activity early, no matter how small, is key.
- Utilize Latitude 32’s Alerts and Controls: Take advantage of the alerts we offer. Set up transaction alerts for your cards so you’re notified of purchases in real-time. If available, consider setting spending limits on your cards.
- Strengthen Your Digital Defenses: Use strong, unique passwords for all your financial accounts, especially your Latitude 32 accounts. Enable two-factor authentication (2FA) whenever possible. Consider using a password manager to securely generate and store complex passwords, making them harder for fraudsters to crack.
- Guard Your Physical Cards and Information: Always use Chip and PIN wherever possible – most merchants now have terminals with this technology. Never share your PIN or write it down. When disposing of old statements or documents with personal information, shred them to prevent dumpster diving.
- Be Wary Online: Avoid accessing financial services or making purchases on public Wi-Fi networks, as they are often unsecured. Additionally, stick to reputable shopping sites that begin with “https://” and show a padlock icon in the URL bar. For extra peace of mind when shopping online, consider using a low-limit credit card specifically for those transactions. Additionally, embrace tap-to-pay or cash; these options cannot give the scammer your credit card number which they can use again and again until you or your financial institution catches them.
Steps to Take If You Think You’ve Been Scammed
If you suspect you’ve been scammed, act quickly to minimize the damage:
- Contact Your Financial Institution
Immediately notify your bank or credit union of unauthorized transactions. Latitude 32 Credit Union will help you to prevent further loss. - Report the Scam
File a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. For scams involving significant financial loss, contact local law enforcement or the FBI’s Internet Crime Complaint Center (IC3). - Secure Your Accounts
Change the passwords of any accounts that may have been compromised, and enable 2FA. Monitor all accounts closely for unusual activity. - Place a Fraud Alert or Credit Freeze
Contact one of the three major credit bureaus—Experian, Equifax, or TransUnion—to place a fraud alert on your credit file. This alerts lenders to verify your identity before approving new credit. - Document the Incident
Keep records of all communications with scammers, including emails, texts, and transaction details. This documentation can assist in investigations.
Staying Vigilant Together: A Partnership for Your Financial Safety
Credit card fraud is a growing threat, but by understanding how fraud works, taking proactive preventive measures, and promptly responding to fraud alerts, you can significantly minimize your risk. Latitude 32 Credit Union is committed to enhancing our fraud detection systems and providing you with the tools and information you need.
A combination of advanced technology, proactive personal measures, and ongoing education is your best defense against falling victim to credit card fraud.