« »

Wednesday, February 19, 2014

Credit card scams: The financial impact they have

Protecting credit card data is an essential part of financial security
Wise consumers take credit card protection upon themselves
By Lisa Coleman

There was a point in history when the only way a person could take someone's money would be to physically rob them of their cash. Those days are now gone, and the world has stepped into a reality where a criminal across the world can steal an individual's identity, use their financial information and even land them in hot water with the law. 

Credit card scams are one of the most frequently occurring financial frauds, and in reality, anyone could fall victim to these scams. This is why it's imperative for an individual to understand the impact of these crimes and how to avoid becoming a victim if they hope to not have their finances ruined. 

Financial impact of credit card scams

There are a variety of financial impacts that can occur related to credit card fraud, and these impacts will vary depending on the victim. An individual who falls prey to a credit card scam, for instance, can quite literally be ruined financially. In fact, they could have thousands of dollars in fraudulent charges racked up against them without even knowing it. Additionally, depending upon how much information a fraudster garnered during the initial scam, a person could have their entire identity stolen.

In addition, businesses can face serious difficulties when it comes to credit card crimes. It's obvious that a company could be financially crippled if an individual got a hold of their credit card information, but the biggest concern is related to data breaches. If a company's information is breached and customer information, including credit card numbers, is stolen, the company could be held liable for any losses experienced by their customers. This can be more financially damaging than having someone running around with the company credit card.

Legal impact of credit card scams

Credit cards can be manually restricted from international use
Credit card fraud costs billions of dollars annually
When it comes to credit card scams, there are a variety of legal implications. Even those who may be completely innocent of any crime, for instance, can face charges. One example would be if someone stole a credit card, made several purchases and then sold these ill-gotten goods. 

An individual who meets this person on Craigslist and purchases an item obtained through a credit card scam could then be charged with receiving stolen property. The penalty for this crime can vary by state, but in many cases, it can result in substantial prison time. 

Those charged with credit card fraud, for whatever reason, will also face serious repercussions. Once again, the penalties can vary by state, but it only takes looking at the federal credit card fraud law to understand the serious implications. If convicted of the crime in federal court, a person could be fined $10,000 or imprisoned for a decade. This means that, regardless of the credit card crime a person is charged with, they should immediately seek out a criminal defense attorney to assist in their defense. It is simply stated by a criminal defense in Las Vegas firm, that "Who you hire can mean the difference between winning your case and losing your case." Seeking a professional and experienced defense attorney with a history in handling credit card fraud cases is essential.

Staying financially safe

There are a variety of ways that an individual can protect themselves from credit card scams. Being proactive and using common sense can go a long way in this endeavor, but the following tips can also help.
  • Don't provide financial information to unsolicited sources.
  • Destroy any documents with credit card information on them.
  • Immediately report lost or stolen cards.
  • Be vigilant in reviewing credit card statements.
  • Avoid purchasing items from strangers if the situation seems suspicious (could lead to receiving stolen property charges).
The financial world that we live in may seem scary, but in reality, it simply doesn't have to be. By taking a few proactive measures, both individuals and businesses can protect themselves from the financial repercussions of credit card fraud. Sadly, many innocent individuals also end up caught up in these scary situations, but as long as they have legal help at their side and are proactive in their own defense, they have a strong likelihood of coming out on the other side unscathed. 

About the author: Lisa Coleman is a blogger and writer that shares her knowledge about the financial impact that credit card fraud can have to an individual or a business. Part of her research included viewing how an experienced attorney group who practices criminal defense in Las Vegas can defend such a case.

Image licenses: 1.  Simon Cunningham, CC BY 2.0;   2. Chris Potter, CC BY 2.0 

1 comment:

  1. Using a credit card safely means that clients must be careful and do not write down the pin-code in the notebook or somewhere on the list on the table, in order to save it. It is better just to remember it. Today there are many of useful services, that is why it is better to be aware about new ones. For example there is an online service that provides easy-to-get loans in US. You just need to apply for the short-time loan and get money on your bank account within 24 hours.