How Do Credit Card Companies Investigate Fraud (Credit Card Fraudulently Used)

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Credit card companies have now been a prime target for criminals. It holds sensitive customer information that can use to commit identity theft and other crimes. The main concern is whether these companies have camera-checking policies to prevent their customer’s credit scores from being used.

The answer to this question may depend on the credit card company. Some credit card companies may have policies to check cameras if they suspect fraudulent activity. Other credit card companies may not have any policy regarding checking cameras. 

This article will help you better understand the types of fraud committed through credit cards and how banks deal with them. It also highlights the security measures taken to prevent these scams. So, let’s get started!

What Is Credit Card Fraud?

Credit card fraud is the unauthorized use of a credit card to obtain goods or services. It can be done by stealing credit card information and using it to make purchases or using the credit card to get a cash advance.

Credit card fraud is a severe crime that can have severe consequences for the victim. Credit card fraud can be costly and damaging to your credit score, so it’s essential to be aware of the signs of credit card fraud and how to protect yourself from it. It can be done in several ways, which include:

Identity Theft

It occurs when someone obtains your personal information, such as your name, Social Security number, date of birth, or credit card number, and uses it to open a new credit card account or make unauthorized charges.


It happens when someone steals your credit card information by attaching a device to a credit card reader, such as at a gas station or ATM. They can then use your information to make unauthorized charges.


It takes place when you receive an email or text message that appears to be from a legitimate company but is actually from a fraudster. They will try to get you to click on a link or provide personal information, such as your credit card number, so they can steal your identity or make unauthorized charges.

Card Not Present

It occurs when you purchase online or over the phone without physically presenting your credit card. Fraudsters can obtain your credit card number and other personal information to make unauthorized charges.

Types of Fraud

Credit card fraud is categorized into true and friendly fraud types. The details of them are discussed below:

True Fraud

True Fraud is when someone who doesn’t know you steals your credit card information and uses it to make charges. It can happen if your credit card information is stolen in a data breach or through other means, such as skimming devices at gas stations.

True fraud can also occur when someone uses a counterfeit credit card or creates a fake credit card using stolen information. If you think you’ve been a victim of actual fraud, it’s essential to report it to your credit card issuer immediately.

You should also keep an eye on your credit report and credit score for signs that someone has opened a new account in your name. By law, you are not responsible for any unauthorized charges made on your credit.

Friendly Fraud

Friendly fraud occurs when a credit card holder uses their credit card to purchase goods or services and then disputes the charges with their credit card issuer. This type of fraud is also known as “credit card reversal fraud.”

Friendly fraud is a growing problem for businesses selling digital goods and services, as it is difficult to prevent and costly to resolve. In many cases, friendly fraud is perpetrated by people trying to get free products or services. In other instances, friendly fraud may be committed by people trying to defraud a business of money.

Credit Card Fraud Investigation Process

If you think your credit card has been fraudulently used, you should first contact your credit card issuer. They will then launch an investigation into the matter. Here is a general overview of what you can expect during a credit card fraud investigation:

Customer Complaint

If you believe your credit card was used fraudulently, you should immediately notify your credit card issuer. The credit card issuer will then begin an investigation into the matter. The credit card issuer will review the transactions in question and determine whether or not you made them. 

If the credit card issuer determines that you did not make the transactions, they will credit your account for the amount of the fraudulent transactions. They may also contact the merchant where the fraudulent transactions occurred to obtain more information about the transactions.

Once the credit card issuer has completed their investigation, they will provide you with a report detailing their findings. If you are not satisfied with the credit card issuer’s decision, you can file a dispute with the credit card company.

Gathering Of Evidence By The Bank

The credit card issuer will review your credit card statement and any other supporting documentation you may have, such as receipts. Once the credit card issuer has gathered all the evidence, they will decide whether the charges are fraudulent. The shreds of evidence collected by the bank will play a significant role in investigating the fraud.

Transaction Examination

Transaction Examination is the process of credit card fraud investigations where analysts examine transactions to look for fraudulent activity. It is done by looking for patterns in the data that may indicate fraudulent activity, such as unusually large or small purchases or a high number of transactions from a single location. 

Transaction Examinations can be used to identify credit card fraudsters and stop them before they cause any more damage. The examination of transactions can be a time-consuming process. Once the investigation is complete, if fraud is indeed suspected, the next step is to contact the credit card issuer and file a report.

Bank Decision

After completing the above steps, the bank will decide whether to file a police report. The investigation process may vary depending on the details of the case. Still, typically the bank will collect all relevant information and evidence from the cardholder, review the activity on the account, and decide based on our findings. They may also contact the merchant to confirm the transaction details.

Evidence The Bank Can Use

The bank can use a few different types of evidence to help build its case regarding credit card fraud. By gathering all this evidence, the bank can help make a strong case against the person accused of credit card fraud. The piece of evidence includes:

Geolocation Data

Banks increasingly turn to geolocation data to track down and prevent fraudulent activity. Geolocation data is information that can use to determine the physical location of a person or device. This data can be collected from various sources, including GPS devices, cell phone towers, and Wi-Fi hotspots.

Banks can use geolocation data to track the location of credit cardholders in real-time. This information can detect and prevent fraudsters from using stolen credit cards. Additionally, banks can use geolocation data to verify the identity of credit cardholders. It can help to prevent identity theft and other types of fraud.

Geolocation data is a powerful tool to combat credit card fraud. However, it is essential to note that this data can also be used to infringe on the privacy of credit cardholders. Therefore, banks need to use this data responsibly and only collect and use it when necessary.

Transaction Timestamps

One way to prevent and detect fraudulent activity they can do is by looking at transaction timestamps. Transaction timestamps can provide valuable evidence of credit card fraud. For example, if a credit card is used in multiple transactions within a short time, this could indicate that the card is being used fraudulently.

Additionally, if a credit card is used in a transaction significantly different from the cardholder’s typical spending patterns, this could also indicate fraud. Banks can review transaction timestamps to look for ways or discrepancies that may tell scam if credit card fraud is suspected. It is a valuable tool in combating this growing problem.

IP Address

A credit card fraud IP Address is a digital code assigned to devices connected to the internet. When you use your credit card online, the merchant will send your information to the bank for approval. 

If your credit card is stolen and used to make purchases online, the bank can use the IP address to see where the transactions are being made from. It can help the police to find the thief and recover your credit card.

It is valuable evidence that the bank can use to help investigate and prosecute credit card fraud. If you are a victim of credit card fraud, be sure to report it to your bank and the police so they can try to track down the thief and get your credit card back.

3-D Secure

3-D Secure is a credit card authentication system it was created to help reduce the amount of credit card fraud. The system works by adding an extra layer of security to credit card transactions. 

When a credit card is used to purchase online, the 3-D Secure system will require the cardholder to enter additional information. This information is typically a password or code known only to the cardholder. By adding this extra layer of security, credit card companies and banks can help to reduce the amount of fraud that occurs.

Behavioral Indicators

There are many ways banks can detect credit card fraud, but one of the most effective is behavioral indicators. By monitoring customer behavior, banks can flag potentially fraudulent activity and take steps to prevent it.

Some common behavioral indicators of credit card fraud include:

  • Making unusually large or small purchases
  • Buying items that are out of character
  • Making multiple purchases in a short period
  • Purchasing high-ticket items
  • Shipping items to an address different from the cardholder’s billing address. 

You must immediately alert your bank if you notice any of these behaviors in your credit card activity. By doing so, you can help to prevent fraud and protect your credit score.

Account Activity

Anomalies in the account activity can be credit card fraud. The credit card company will look for vital behavioral indicators to decide whether there is a fraudulent activity with the credit cards. Account activity includes how often you use your account, whether you make timely payments, and your overall credit utilization.

By providing evidence of solid account activity, you can demonstrate to the bank that you’re a responsible borrower who will likely repay any loan or line of credit. Banks will look at timely payments as one key aspect of account activity.

Bank Action On Fraud Cases

Banks have several actions they can take when it comes to fraud cases. Each case is unique, so the actions taken will vary depending on the situation. However, banks take a few critical steps in fraud cases.

  • The first step is to contact the customer. The bank will want to get more information about the situation and try to resolve the issue. If the customer is cooperative, they can often resolve the problem quickly. However, if the customer is uncooperative or the bank cannot get more information, they may take further action.
  • The next step is to close the account. It is usually done if the bank cannot resolve the customer’s issue. Once an account is completed, the customer will no longer be able to access their funds. In some cases, the bank may also take legal action.
  • Finally, the bank will report the fraud to the appropriate authorities. It helps to protect other customers and ensure that the perpetrators are brought to justice.

If the bank is unsuccessful, they may take further action, such as closing the account or taking legal action.

Friendly Fraud Or Chargeback Scams

Friendly fraud or chargeback scams occur when a customer purchases and then requests a chargeback from their credit card issuer, essentially reversing the charges. They can use it for various reasons, such as claiming they never received the merchandise, that the merchandise was not as described, or that they were charged more than the advertised price. It includes:


Friendly fraud or chargeback scams can be a big problem for merchants. Here are some things to watch out for:

  • Customers who make a purchase dispute the charges with their credit card company.
  • Customers who claim they never received their merchandise.
  • Customers who claim they were charged the wrong amount.

You should immediately contact your credit card company or bank if you suspect friendly fraud or chargeback scams. They will be able to help you resolve the issue.


Banks play an essential role in preventing friendly fraud or chargeback scams. By carefully monitoring transactions and providing customers with knowledge about their rights and options, banks can help protect consumers from becoming victims of these scams.

Banks may be liable for damages if they fail to take action against known or suspected friendly fraudsters. Friendly fraud is illegal and can result in criminal charges against the consumer and the bank.


Cardholders should be aware of friendly fraud or chargeback scams. In a friendly fraud or chargeback scam, a cardholder contacts their card issuer and claims they did not authorize a transaction on their card. The card issuer reverses the transaction, and the cardholder gets their money back. The merchant is then left to deal with the loss.

Cardholders can avoid friendly fraud or chargeback scams by being aware of what to look for and taking steps to protect themselves. Monitoring the expenditures and reporting unauthorized charges by taking these steps can help cardholders avoid becoming victims of friendly fraud or chargeback scams.

Bank Anti-Fraud Defenses Through Video Surveillance Systems

As technology has advanced, so have criminals’ methods to target banks. Banks have stepped up their security measures, including video surveillance systems. Video surveillance systems are an effective anti-fraud measure for several reasons. Here is how they work:

how long do banks keep camera footage

Monitor Sensitive Areas With Real-Time Alerts

Banks are always looking for ways to reduce fraud and protect their customers’ sensitive information. One way they’re doing this is by increasingly relying on video surveillance systems to monitor sensitive areas of their operations. 

These systems can monitor sensitive bank areas, such as the teller area or vaults, and generate real-time alerts by allowing them to take quick action to mitigate potential losses. In addition, video footage can be reviewed after the fact to help identify any patterns of fraudulent behavior. By installing it, banks can deter would-be criminals and give themselves another layer of protection against fraud.

Protecting Surveillance Cameras With Active Tampering Alarms

As the use of video surveillance systems increases, so does the need for security around those cameras. One way to protect against tampering and other forms of fraud is to use active tampering alarms. 

Installing an active tampering alarm system can be valuable to bank security. These devices can help to deter criminals and provide a quicker response if tampering does occur. By taking steps to protect against tampering, banks can help to ensure the safety of their employees, customers, and assets.

There are a variety of active tampering alarms on the market, each with its own set of features. When choosing an alarm system, it is essential to consider the needs of the bank and the type of cameras being used. Some plans are more comprehensive, so finding one that meets the bank’s specific needs is essential.

Uncovering Internal Theft & Fraud

In addition to deterring potential thieves, video surveillance systems can help banks uncover internal theft and fraud. By constantly monitoring employee activity, banks can quickly identify any suspicious behavior. 

It helps to create a safer working environment for everyone involved. If you’re looking for a way to improve the security of your bank, consider investing in a high-quality video surveillance system. It could be the best decision you ever make.

Detecting The Installation of ATM Skimming Devices

Video surveillance systems can be robust for deterring and detecting ATM skimming activity. Bank staff can quickly spot any suspicious devices attached to machines by monitoring ATM locations. 

Additionally, video footage can be reviewed after an incident to identify suspects and gather evidence for prosecution. Banks can significantly reduce the risk of ATM skimming and protect their customers’ information and funds by using a video surveillance system.

Discovering Cash Harvesting & Suspicious Behavior In ATMs

Cash machines are one of the most popular targets for thieves. It is because cash machines typically contain large amounts of cash. The best way to protect cash machines from these attacks is by using a Video Surveillance System. 

A Video Surveillance System will allow you to monitor cash machines for suspicious behavior. It will also allow you to record any cash-harvesting attempts. They can use this information to help identify criminals and bring them to justice.

Finding Check & Identity Fraud

Video surveillance systems use cameras to monitor real-time activity, allowing bank personnel to quickly identify and respond to suspicious behavior. In addition, video footage can be used as evidence in court if necessary.

There are a few things to remember when using video surveillance systems to defend against check and identity fraud. 

  • First, ensuring that the cameras are correctly placed and positioned is vital to get the best coverage possible. 
  • Second, they should monitor the footage regularly to ensure that any suspicious activity is caught and addressed promptly. 
  • Finally, it is essential to have a plan for what to do if fraud is detected so that they can take the appropriate steps quickly and efficiently.

When you use video surveillance systems correctly, they can help deter and prevent fraud and provide evidence if necessary. Banks and other financial institutions can protect themselves and their customers from this crime by taking these steps.


How Do Banks Investigate Stolen Debit Cards?

If your debit card is stolen, it’s essential to know how your bank will investigate the theft. Here’s what you need to know.

  • The investigation will usually start with a call to the customer service department. 
  • They will first work to identify the person who stole the card.
  • They’ll look at any transactions made with the card and try to identify the person who made them.
  • If they can’t figure it out from the transactions, they may contact the merchant where they used the card.
  • Once they’ve identified the thief, they’ll work on getting your money back.

 In some cases, they may be able to refund the total amount stolen. In other cases, they may only be able to repay a portion of the money. Bank will try anything to investigate the theft and get your money back to you.

What Happens if You Chargeback Too Much?

If you chargeback too much, your credit card issuer may limit your account’s access to funds or close your account entirely. The merchant will not be able to use credit cards like before.

 With high chargebacks ratio, you will not be able to work with other companies either. If this happens, you’ll need to find another way to pay for goods. Chargebacks can be costly for businesses and consumers, so it’s essential to understand how they work before using this feature.

Can I Dispute a Credit Card Charge that I Willingly Paid for?

If you have paid for a credit card charge that you now dispute, you may be able to get a refund by asking the credit card issuer to reverse the order. It is called a “chargeback.” If you paid for a credit card charge that you dispute, you might still be able to get a refund through a chargeback.

To request a chargeback, you will need to contact your credit card issuer and provide them with the details of your dispute. The credit card issuer will then investigate the matter and determine whether or not to issue a refund.

Can You Go to Jail for Using a Fake Credit Card?

The answer to this question is complicated and depends on several factors. In general, using a fake credit card is considered fraud, which is a crime. You could face jail time if caught and convicted of credit card fraud. 

The amount of jail time you might receive will depend on the severity of the crime and your prior criminal history. If you use a fake credit card to make a small purchase, you are unlikely to face severe punishment without going to jail. However, if you use a fake credit card to make a large purchase or commit identity theft, you could face much more severe charges.


While it’s impossible to know for sure whether or not your credit card company is monitoring your every move, there are a few things you can do to protect yourself. Be careful about using your credit card in public places and always be aware of your surroundings. If you’re ever in doubt, you can always ask the credit card company directly if they have any policies regarding cameras and recording devices.