Credit Report Blog
Website CertifiedPrivacy Protected

Credit Reports as a Valuable Tool against Fraud

By Ruth Racey
Published: Sunday, September 20th, 2009

Credit cards have undoubtedly changed the landscape of the nation’s economy. Because of the plastic revolution, Americans are able to purchase almost anything they desire. For economists, the logic is quite simple. More spending means more demand for more products and services. A greater demand for products and services would result in the creation of more jobs. With this in mind, credit cards can be considered as real economic power tools.

Unfortunately, the presence of credit cards has also resulted in a new breed of daring criminals, fraudsters. credit card fraud is one of the costliest illegal activities in the U.S. With most American adults having multiple credit cards at any given time, the opportunity and the temptation to defraud honest consumers is too much for criminals to resist.

Most swindlers need only to get hold of several key personal information. Fraudsters usually look for information that may have been provided to card companies when cardholders first applied. All it takes is just a few pieces of important data and a card number to charge thousands of dollars to an unsuspecting cardholder’s account.

Surprisingly, looking for personal information is neither that hard nor painstaking. Opportunistic criminals can simply rummage through garbage and look for discarded credit card statements. They can also go through mailboxes and find pre-approved card applications. Even worse, a daring con can even assume the identity of a cardholder using just a name, an address, and a social security number. These are just the data that card issuers require when applying for a new card.

Most victims of credit card fraud find out about unauthorized purchases when it is already too late. Clever swindlers get rid of the card and any data long before consumers find that something is amiss. They can seem to disappear without a trace, leaving the victim feeling hopeless and heavily in debt.

Unless a cardholder regularly asks for a credit report, then the purchases would never be discovered and the consumer’s credit score and history would bear unsightly entries. A credit report will give a cardholder updates about their spending habits and previous transactions.

Diligent consumers who keep their own records of their purchases can also compare their records with those of the credit bureaus that issue credit reports. Discrepancies are usually easy to spot and cardholders can immediately contact credit agencies to ask for clarifications or file complaints. Upon discovering any suspected fraudulent transactions, consumers can ask their card companies or banks to investigate further and clear their names.

Having a clean credit record is crucial for any consumer to continue receiving credit. A good credit score can also encourage banks and card companies to take good care of a responsible cardholder.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.