Yesterday a friend shared a story with me how her credit card was fraudulently used for online purchases. She always tracks her credit card transactions, so when some unknown charges came up, she could act fast and block the card before further damages were done.
When she called the bank to ask about the charges, she was told that they were apps purchases at iTunes store. She started to get suspicious because the only time she used it was buying an app for her niece a few months ago. Her niece might have purchased apps without knowing that these purchases would be charged to her aunt's credit card account.
After checking with her niece, her suspicion was confirmed. She had bought some apps from iTunes store thinking that they were free because they were featured in Apps Gone Free. Well, they were only free for a day, not forever!
Since the amount of credit card charges were not too big, my friend paid the credit card charges in full and asked the bank to replace her card, instead of disputing the charge. Sometimes disputing the charge can cost more than simply paying the balance. (You can read my story here)
What can we learn from this incident?
- Track your credit card expenses
- Get your bank to notify you for any credit card expenses above a certain amount (you can set the amount yourself). The notification is usually sent by SMS just a few seconds after the transaction occurs.
- Do not leave your credit card detail saved on website or online store. It may be inconvenient to enter your credit card detail for every transaction, but it is definitely safer, especially if you have youngsters using your gadgets.
Learn and Grow!
Inge Santoso, B Com, CFP®