With the advent of online commerce, credit and debit card fraud has exploded. In fact, according to data collected by the Federal Trade Commission (FTC), there have been 230,937 reports of credit card fraud filed in the first two quarters of 2022.
Unfortunately, credit card fraud can go unnoticed until it causes serious damage. Here, we’ve outlined what you need to know about credit and debit card fraud, how to protect yourself and what to do if you’re targeted. What is credit card fraud? Credit and debit card fraud occurs when a scammer gains access to a victim’s card information and goes on to empty their accounts, commit identity theft and more. Card fraud can be pulled off in several ways:
Protect yourself Fortunately, there are measures you can take to protect yourself from credit or debit card fraud. Follow these tips to stay safe:
If you’re targeted If you believe your credit or debit card has been frauded, take immediate steps to mitigate the damage. First, let the credit card company know about the fraud. Similarly, if your debit card has been frauded, let Ingersoll-Rand FCU know as soon as possible. Your old card will be canceled and you’ll be issued a replacement card immediately. You may also want to consider placing a credit freeze on your accounts as well to prevent the scammer from taking out a loan or opening another account in your name. Will I be liable for the fraud? Taking immediate action upon the event of fraud is critical to your recovery. Under federal law, credit card holders are only liable for up to $50 in fraudulent charges. Debit card holders, on the other hand, only enjoy the same cap on their liability if they report the fraud within two days. Upon failure to do so, they may be held accountable for up to $500 if the fraud is reported within 60 days of occurrence. If they miss this deadline as well, they will be liable to cover the entire fraudulent charge to their account. The good news is most credit and debit cards issued through major payment networks, like Visa and MasterCard, offer zero liability policies and other consumer protections. Read the fine print in your card agreement carefully to familiarize yourself with your responsibilities. Credit and debit card fraud can devastate a victim’s financial health and leave them with huge bills to pay. Follow the tips outlined here to stay safe. Your Turn: How do you protect yourself from debit and credit card fraud? Share your tips with us in the comments.
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The holidays are over, and if you’ve gone over budget with your spending, it’s time to deal with the aftermath. Instead of living in a financial deficit, take steps to repair your budget as soon as the last guest leaves.
Here’s how you can get your budget back on track for the new year. Review your holiday spending Before you take steps toward financial post-holiday recovery, take stock of your finances. How much credit card debt did you rack up this season? Did you dip into a savings account that now needs to be replenished? Spend some time crunching the numbers so you have a better idea of what kind of recovery steps you need to take now. Choose your recovery process Once you’ve got your numbers clear, you’ll need to decide on a path toward recovery. If you’ve really blown it this season, and you’ve got multiple credit card balances to pay off, you may want to consolidate your debt. You can accomplish this by taking out a personal/unsecured loan and then using the funds to pay off your credit card debt. You’ll be left with a single, low interest payment to make each month. Alternatively, you can pay off one credit card bill at a time, maximizing payments on the bill with the highest balance, or the one with the highest interest rate, until it’s completely paid off. Once you’ve crossed one balance off your list, move on to the next until you’re debt-free. Don’t get stuck paying just the minimum balance on each card each month, or you may be paying those credit card bills for years to come. Trim your budget Take a close look at your monthly spending to find places to cut back. Are you paying multiple subscriptions each month for apps you never, or rarely, use? Those small fees can add up quickly. Can you cut back on your grocery bill? Perhaps you’re overdoing it on takeout or dining out. Is there any way you can negotiate with a service provider, such as cable or internet, for a better monthly rate? Maybe it’s time to shop around for a less expensive auto insurance policy. Trim the extra wherever you can to free up more money for paying down debt. Put your holiday resources to work Along with a pile of debt, the holiday season may have left you with some extra cash through work bonuses, tax returns and gift money. Put these resources to work by using a portion of this money, or even all of it, toward paying down your holiday debt. It may sting to use “extra” money for something as utilitarian as a credit card bill, but getting rid of the debt faster so you can return to your normal spending patterns can motivate you to make this choice. Go on a shopping detox Before the holidays, you shopped until you dropped and then you may have shopped some more. Now, it’s time for a shopping detox. Take a break from the mall this month and close all those open tabs presenting your favorite clothing brands. Resolve to swipe the plastic only for essentials this month, or at least to keep discretionary purchases to a minimum until your budget recovers. Trimming expenses is never fun, but remind yourself that it’s only temporary until you’re financially fit again. Make a plan for next year’s holiday season It’s never too early to start thinking about next year’s winter holidays. Instead of using the months before Christmas stressing out over how much you’re spending, and the months after the holidays stressing about paying your bills, pay a little bit toward your holiday expenses each month of the year for a much less stressful holiday season. When you open a holiday club account at Ingersoll-Rand FCU, you can set up an automatic monthly transfer from your checking account to feed your holiday savings. If you blew your budget this holiday season, you’ll need to take steps to help your finances recover. Use the tips outlined here to get started. Your Turn: How are you helping your budget recover from the holidays? Share your best tips with us in the comments. If you’re planning a trip overseas, airfare may be your largest vacation expense. Even when flying relatively close to home, the cost of your airline ticket can take a big bite out of your vacation budget. Fortunately, there are loads of ways to save on airfare and leave you with more to spend at your destination. Here, we’ve compiled a list of six ways to save on airfare.
Be flexible with dates and destinations If you’re willing to be flexible on dates and the destination of your flight, you can potentially save hundreds on your airline ticket. Instead of choosing a date and destination for your vacation and then searching for the best prices, select a date and destination based on the best available deals. If you’re set on going to a particular destination, you may be able to save a boatload of money on the ticket by flying to a nearby airport and then driving to your vacation spot. Shop smart onlineHarness the power of technology to score the best price on airfare. Searching sites and apps like Expedia, Orbitz and Priceline is like using multiple travel agencies to find the best flights for your vacation. Kayak, another popular travel app, plugs your preferred dates into its search engine and searches airline sites and agency sites to provide you with all the prices and options available. Act quickly to snag mistake fares The best deals on airfares happen by mistake. When an airline accidentally discounts a ticket, you can snag a flight for as much as 90% off its conventional price. Mistake fares get snatched up quickly, so you’ll need to check your favorite airlines and flight apps often so you don’t miss a deal. If you haven’t worked out your child care and/or work arrangements for a date with a heavily discounted airfare, it’s best to grab it anyway and work out the details later. By federal law, airlines must allow 24 hours for free cancellations of all flight tickets. Consider booking with a foreign currency If you’ll be flying a foreign carrier, it may be cheaper to pay for your ticket with the local currency of your destination. Before paying for your flight, check to see if it’ll cost less if you don’t pay in dollars. Sometimes, it can actually cost more this way, but oftentimes, you can save a significant amount by simply changing your location from the U.S. to your destination. Book early You’ll typically find the best deals on international flights 3-6 months before the departure date. If you’ll be traveling during peak times, like summer or during a holiday season, you’ll want to search for tickets even earlier. Flights are updated constantly, so check often to get the best deal. Watch out for sneaky fees Too often, an economy flight will actually cost a lot more than its listing after the airline tacks on all sorts of extra fees and surcharges. For example, you may need to pay a fee for every bag you check during each leg of your journey. Other airlines charge a fee for choosing seats, which may be a necessity if you’ll be flying with young children or an elderly person in need of assistance. Make sure you know exactly how much you’ll be paying before you book a ticket – it can sometimes be cheaper to upgrade your ticket or switch to a direct flight and avoid some of these fees. Airfare can be the biggest item on your vacation budget, but there are so many ways to save on this expense. Use the tips outlined here to get the best deal on your tickets and keep your vacation budget intact. Happy travels! Your Turn: Have you scored a low price on an airline ticket? Share your best hacks with us in the comments. |
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