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After graduating, I had zero credit cards and zero credit debt. I never opened a credit card during college, nor did I consider it. Not long after I graduated, I noticed a new inquiry and a new credit card on my credit report.
“What the hell is this?” I thought.
After further digging, I found out who opened the credit card and balked.
Someone Had To Pay Up: Them or Me
I figured I could get a refund for the credit charges, but no, the company conveyed the charges had to be paid in full.
The credit card company told me the only way I could recover these losses was to report the incident to the police. I chose not to, and instead, I covered the bill until the person could pay me back.
However, I didn’t want this several thousand dollar credit card bill looming over my budget for years. Hence, I paid off the balance early and collected monthly payments from the perpetrator (yup), who only pays the minimum payment, which is why the bill is taking some time to pay off.
Thankfully, the credit card company didn’t charge me interest on the balance – making it easier to pay it off quicker. They also closed the credit card immediately after reporting, so the card could no longer be used.
Credit Fraud Happens; Be Vigilant
I never quite imagined I’d be a victim of credit fraud – especially not by my blood, but it happened. I learned my lesson, and I monitor my credit frequently. You don’t have to teach me twice; I learn the first time and remember.
It’s more likely someone you don’t know will open a credit card in your name. In either case, you must monitor your credit profile, so you can catch irregularities that could cost you and your credit profile for years.
Each year, credit fraud instances increase.
Credit Card Fraud Statistics to Keep You Aware in 2022
In 2020, over $28.5 billion was lost worldwide due to payment card fraud (Source: Nilson Report)
Gross losses from card fraud transactions are expected to exceed $49 billion by 2030. (Source: Nilson Report)
35.8% of all card payment fraud losses occur in the US. (Source: Nilson Report)
Nearly 1 in 4 digital interactions in 2020 was a fraud attempt. (Source: Arkose Labs)
Out of every $100 spent with a bank card, $6.81 was stolen in 2020. (Source: Nilson Report)
Stolen credit card details trade for as little as $5 on the black market (Source: Forbes)
People aged 30 to 39 suffered the most from credit card fraud in 2020 (Source: Federal Trade Commission)
In 2020, The Federal Trade Commission paid $483 million to credit card scam victims. (Source: Federal Trade Commission)
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This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.