‘Return to Normal’ Means Renewed Need to Prevent Fraud

Orignally published in the Summer 2021 issue of Wake Living Magazine. 

As COVID-19 numbers wane and an increasing percentage of North Carolinians are becoming fully-vaccinated, this summer we’re certain to see a pent-up demand for outdoor activity, travel and just getting out and living.  As we begin to venture out after 15 months of life mostly at home, we’ll no doubt be pulling out our debit and credit cards to pay.

This new wave of spending is likely to bring about a resurgence in an old annoyance that we’ve all experienced as consumers: lost, stolen and compromised cards. While seemingly a fact of modern life, there are steps we can all take to help protect ourselves and prevent more frustrating problems, including fraud and financial loss.

Finding and Reporting Issues

Often, we don’t know something is wrong until it hits us in the wallet. Stay ahead of surprises by monitoring your accounts regularly, and setting up alerts in online banking. I like to have a text sent to my phone for each transaction, so I know right away if anything unusual happens.

If you do experience a fraudulent charge, contact your financial institution to dispute it right away. Time is on your side if you report it quickly, and you’re not likely to be liable for the charge. They can also immediately block your card from being used, and send you a replacement.  You may also be instructed to file a police report.

Preventing Compromises

One major source of card fraud is compromised merchant data.  Fortunately, there are a few ways you can work to prevent this type of fraud and protect yourself.  The first is in the type of transaction that you decide to do. If the merchant offers it, choose a transaction that uses the chip on your card instead of the magnetic stripe.  Unlike stripe transactions, chip transactions are encrypted and generate a digital token, instead of passing your card number, expiration date and security code to the merchant’s payment system.  Many cards, including those issued by Coastal Credit Union, now have contactless payment technology that offers the same security as inserting the chip. Similarly, using a digital smartphone wallet, like ApplePay or Google Pay, will provide a secure transaction.

If you do need to do a magnetic stripe transaction, always be vigilant when you use your card. Take a moment to examine the payment terminal or ATM for obvious signs of tampering. If anything looks suspect, report it to the business.

This vigilance also extends to making purchases online. Check the website address for “https” and a lock icon, but also verify that the web address matches the site you intend to be purchasing from, and is not a spoof – a fraudulent site designed to appear legitimate.

While nothing is 100% preventable, knowing what to watch for, and controlling what you can, will help minimize inconveniences and enable you to more fully enjoy getting back to normal.