How Credit Card Companies Detect Fraud

Find out how Credit Cards are able to detect fraud instantaneously

How Credit Card Companies Detect Fraud.

Credit card companies are tracking your every move; by using your credit card for every purchase, these companies can see what you bought, where the transaction was made, what time it occurred, and how much it cost. With this massive amount of data, they are able to look for any suspicious pattern. If a series of events seems off, they can close your credit card until they can contact you to confirm the purchases.

Examples of suspicous patterns

Credit card companies are able to train their computers into noticing any unusual activity.

  • A purchase is made thousands of miles away from your usual area (remember to call your credit card companies before traveling overseas for vacation!).
  • A transaction occurs in an area of high credit card fraud. Credit card companies can construct a heatmap of where fraud is most frequent. The area of transaction gets weighed into whether this is a fraud or not.
  • A large transaction occurs right after a smaller one. This is usually a thief checking to see that the card works before making a larger purchase.
  • Type of purchase with regard to gender, typical monthly charge.
  • Frequency of purchase compared to the norm.

Why do Credit Card Companies invest so much in catching fraud?

Nowadays, credit card companies offer you protection so that you aren't wrongfully charged if your credit card information is stolen and abused. If you ever see a suspicious charge on your statement that clearly wasn't from you, you can request to have it removed and the amount credited back. Thus, the main reason that credit card companies are so invested in detecting credit card fraud is to protect themselves of wrongful charges.


Aching back from coding all day?

Foam Seat Cushion

Aching back from coding all day? Try Back Problems

This foam seat cushion relieves lowerback pain, numbness and pressure sores by promoting healthy weight distribution, posture and spine alignment. Furthermore, it reduces pressure on the tailbone and hip bones while sitting. Perfect for sitting on the computer desk for long periods of time.

$ Check price
99.9599.95Amazon 4.5 logo(9,445+ reviews)

More Back Problems resources

Must-Reads for Financial Success

Think and Grow Rich

Must-Reads for Financial Success Try Money

Think and Grow Rich is the most important financial book ever written. Napoleon Hill researched more than forty millionaires to find out what made them the men that they were. In this book he imparts that knowledge to you. Once you've read this book you will understand what gives certain people an edge over everyone else. It's time to stop wondering what it's like to be rich and start knowing.

$ Check price
8.998.99Amazon 4.5 logo(4,881+ reviews)

More Money resources

Ad