What is the Difference Between Credit Card Fraud and Identity Theft?

What is the Difference Between Credit Card Fraud and Identity Theft?

You hear the terms credit card fraud and identity theft used frequently, and sometimes, interchangeably. But in reality, the two terms are quite different. Unfortunately, both affect people around the country every year. Knowing the distinction can help you communicate with your bank, family members, or even law enforcement should either happen to you. 

Credit Card Fraud

Credit card fraud occurs if a fraudster steals your credit card and is then able to turn around and make purchases. Sometimes the goal is to keep the purchased items, other times the items are sold for cash. 

Even with the increased security of online payments and the increased prevalence of business utilizing Chip-and-PIN credit cards readers, thieves are still able to steal billions annually. Thankfully, these charges are often protected through your financial institution. 

Credit card fraud prevention is important, but there are steps you can take if it happens to you. If your card is stolen or misplaced, it is vital to cancel the card immediately so the individuals who individuals cannot use it. Since fraudulent credit payments are usually covered by your financial institution, there is typically not a huge loss. 

Identity Theft

Identity theft occurs when a criminal obtains enough personal information about you to be able to open accounts in your name. Your identity could be stolen through your banking information or your social security number. Using this information, a criminal can obtain a loan, falsify a tax return, or even open a new credit card all in your name and without you knowing. 

The damage to your finances from identity theft could be dire and will take much longer to solve. Trying to convince the bank that you didn’t take out a loan could be a tug of war for months. The same could be said of speaking with the IRS about a falsified tax return. Identity theft is an issue that can affect anyone and can cause detrimental things to occur to your finances. Identity theft prevention is an absolute must for every consumer. 

QKey Gives You the Advantage

Data breaches can damage your credit, finances, and the entirety of your life. Guarding your personal information can help you with preventing credit card fraud and identity theft. 

QKey is meant to protect your sensitive information. The advanced Chip-and-PIN offers password management, secure online payments, and personal information storage and protection. It is the most innovative way to fight off fraud and theft. Learn more by visiting our website or contacting us today.