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Do you know the many types of credit card fraud?

If you don't understand the many types of credit card fraud, there is always a chance you could commit a crime without actually knowing what you're doing. It goes without saying that this is a position you don't want to find yourself in.

Here is a brief rundown associated with each type of credit card fraud:

  • Identity theft. This is the unauthorized use of another person's identity to commit fraud. An example of this would be using another person's name and social security number to secure a credit card online or via mail.
  • Stolen credit card. This is exactly what it sounds like. It's when a person steals a credit card and uses it to make purchases.
  • Fraud spree. It is illegal to make unauthorized charges on a credit card account. This typically comes into play once a person steals a credit card.

Whether or not a person has actually committed credit card fraud is not always simple to determine. For example, you may believe that a person gave you permission to use his or her credit card; however, they're under the impression that you stole it from them.

Since the penalties for credit card fraud can be severe, you'll want to learn more about your charges and how the legal system will unfold in the day, weeks and months to come.

It's imperative to understand your legal rights and the defense strategy that can help you avoid the most serious punishment. Even if the deck is stacked against you, there are steps you can take to put yourself in better position.

Source: FindLaw, "Debit / Credit Card Fraud," accessed Oct. 25, 2017

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