Protect Yourself From Fraudulent Web Online Charges – 6 Tips

Here’s what I learned from my experience this week. Hopefully my story and tips will help you become more aware and more astute in protecting yourself from unauthorized charges to your credit card or checking accounts from the internet.

Nearly $600 hit my business checking account as an ‘immediate transfer charge’ from internet Merchant Account, i.e., Paypal. It could be one of many internet services where we have an account.

I received letter from bank saying I need to add cash to my checking account to cover that transfer charge, which was denied because of insufficient funds in my account.

I knew I did not purchase anything that large recently. I contacted the Merchant Account and they had already put a ‘hold’ on my account as they recognized this as an unusual charge. The hold would prevent additional transactions to the account in the future. (Don’t assume that all merchant account companies will do this, because they don’t.)

But the existing unauthorized fraudulent transaction would be presented again to my checking account until a letter of denial was received from my bank or there was sufficient funds in the account again. Wow, that’s dangerous because I fund that account when I pay my monthly bills! So at some point, there could be cash enough to cover the charges!

I was lucky this time because my account had minimal balance right now.

The error correction process is circular making it difficult to make changes, reverse errors, and protect your cash. Technology is not as flexible as a real person.

Six Tips to Protect Yourself From Fraudulent Online Purchases
This is general information, and is not intended to be a comprehensive list. But these tips will give you a good head start on staving off fraudulent online purchases.

Tip 1: Only buy goods from secure websites you know and trust. Secure website addresses start with https and may use a security system such as Verified by Visa or MasterCard SecureCode security for online payments.

Tip 2: Credit cards are by far the safest way to pay online, according to the National Consumers League. That's because your liability is limited to $50 under the Fair Credit Billing Act.

Many credit-card companies have $0 liability policies. This means you won't be held accountable for any fraudulent purchases.

However, read the fine print. MasterCard has zero liability policy good only for U.S. issued cards. And you are limited to one purchase in last 12 months, plus your account must be in good standing.

Tip 3: Look for time limits on filing a claim. Some companies require a claim must be filed within 30 days of the fraud.

Tip 4: Never click on links or attachments in emails unless you are 100% sure that the email is legitimate. Protect yourself by always typing in the address of your bank or online shopping site yourself, rather than by following links.

Tip 5: Debit card payments have limitations. Your liability limit under federal law increases the longer you wait to report any unauthorized activity. If you report it within two days, your liability is capped at $50. Wait longer than two days, though, and it skyrockets to $500.

And if you don't report the unauthorized debit transaction within 60 days, you could be liable for the full amount -- even if it exceeds $500, says the Federal Trade Commission

Tip 6: Review the charges to your bank and credit card accounts regularly, at least weekly. I’ve always done this and have caught several errors. These days I think this kind of review is more important than ever before.

Have a happy day and keep your cash safe.

Barbara Filla
Passionate about people, entrepreneurs and business
Passion Branding Coach
www.BraveHeartWomen.com/BarbaraFilla