Law firm for credit card fraud: Limit financial damage

Credit card fraud: legal classification and typical cases

Credit card fraud covers all acts in which criminals intercept and misuse credit card data or access information without authorization. This often happens via manipulated readers (so-called “skimming”), where card data is copied unnoticed. Increasingly, cases of fraud are also occurring in the digital space, for example in hacked online stores or via phishing emails that specifically ask for sensitive information such as credit card numbers and security codes. Those affected not only suffer financial losses, but often have to invest a lot of time and effort to clarify the abuse and reclaim their money.

If you have been the victim of fraud or suspect that you have been a victim, we at CDR Legal will provide you with sound legal support immediately. You can take advantage of a free initial consultation to efficiently clarify which steps make the most sense. In many cases, quick action is crucial, because the sooner you inform your bank, the faster the credit card can be blocked and potential damage limited. Banks and credit card companies are generally obliged to help you with unauthorized transactions. However, there may be a risk of contributory negligence if negligence or gross negligence is involved.

Liability issues and gross negligence

Liability for credit card fraud is often complex. As a rule, banks and credit card companies must cover the damage caused by unauthorized payments unless the cardholder can be accused of intentional or grossly negligent conduct. However, whether there is contributory negligence may vary from case to case. Factors such as compliance with due diligence obligations and prompt reporting of unauthorized transactions play a major role here. You can find an overview of the possible liability issues in credit card fraud in this context on the CDR Legal website.

For example, if you have written down your PIN on your credit card or passed on personal data online without hesitation, you may be accused of gross negligence. In such cases, there is a risk that you will have to pay for part of the damage yourself. On the other hand, banks and merchants are obliged to take adequate security precautions to ensure that your credit card details do not easily fall into the hands of third parties. Find out more about how different liability scenarios can arise and which legal framework conditions need to be observed.

Recognize scams

Criminals are constantly working on developing new scams and exploiting security loopholes. Various manipulation methods can be found on the Internet in particular: developments in the field of phishing, i.e. fake e-mails and websites, or the transfer of collected data to foreign networks make it more difficult to detect. One well-known method is BCS phishing, in which fraudsters pretend to be a bank or payment service provider in order to obtain confidential data. You can find more detailed information on this topic in the notes on BCS phishing.

However, credit card fraud is not only directed against traditional accounts. Users of bonus and mileage programs are now also increasingly the target of attacks. For example, criminals are trying to steal the award miles collected with Lufthansa Miles & More. Redeeming miles in particular requires personal access data and account information, which fraudsters can obtain using fake log-in pages or fraudulent e-mails. You can find out how to prevent losses and what you should look out for in our article on credit card fraud in connection with Lufthansa Miles & More.

The same applies to sales and brokerage platforms such as eBay classifieds. There, consumers are particularly at risk during private transactions when fraudsters send fake payment receipts or lure them with supposed buyer protection programs. Credit card details are quickly disclosed without checking the reliability of the trading partners. You can find out what to look out for and what tricks fraudsters use in the information on credit card fraud in eBay classified ads.

Practical recommendations for action

If unauthorized credit card use is detected or if there is an urgent suspicion, you should react immediately. We recommend that you first inform your bank and have the card blocked so that no further debits are made. It is then worth documenting bank statements and any anomalies and, if necessary, filing a criminal complaint with the police. A systematic approach can help to strengthen your legal position and substantiate claims for damages.

• Block your credit card immediately.
• Make a note of suspicious transactions and keep bank statements.
• If in doubt, file a criminal complaint against unknown persons.
• Have your claims checked legally in order to assert the damage incurred.

You can find out how to proceed in detail and which contact points are important in the specific recommendations for action in the event of credit card fraud. You will learn why a prompt response is often crucial and how you can refute possible accusations of complicity. It is also advisable to check your credit card details at regular intervals and keep an eye on all transactions. If unauthorized use does occur, you can detect the damage earlier and stop the misuse immediately.

In addition to notifying the bank, it is advisable to consult an experienced lawyer who can represent your interests competently. The CDR Legal team is there for you when it comes to enforcing claims against credit card institutions or third parties. Our lawyers have many years of experience and are familiar with banking and capital market law. Even in cases where different parties – such as online retailers, intermediaries or insurers – are involved, a precise legal examination clarifies who ultimately bears the damage.

The more precisely your case can be documented, the better the chances of achieving a quick and fair settlement of the claim. If security gaps are identified on the part of your bank, this can be an important point of reference for your claims. Conversely, plaintiffs must expect critical questions if, for example, passwords or PINs were publicly accessible. This is where professional legal advice proves its worth, as it can clarify whether the bank bears the burden of proof or whether there are indications of contributory negligence.

How CDR Legal can help you

Use the free initial assessment to evaluate your situation: With empathy, competence and transparency, CDR Legal examines your prospects of success and only accepts cases with realistic chances. You receive full cost transparency before every service. On request, we can also make a non-binding inquiry with your legal expenses insurance company. Make an informed decision and benefit from our many years of experience and legal precision.

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