Fraudsters Use Tiny Credit Card Charges, Hoping You'll Miss Them

Recently we received a call from one of our credit card companies, informing us of possible fraudulent activity. Turns out that was exactly the case, only there was a twist: Most of the charges were for less than $20.

It's part of a new trend in credit card fraud: The charges are kept very small, mainly in the hopes that you simply won't notice them among larger charges on your credit card statement. This way, the fraudulent charger can keep billing you every month, as long as it goes unnoticed.

CA (formerly Computer Associates) notes that micro-fraud is a growing problem, as people have gotten more and more lax about checking their statements. I know mine sprawls into two pages every month, and it can be tiresome to hunt down phony charges on every statement. But you gotta do it, now more than ever.

What should you do if you find a phony micro-charge ($9.87 is, for some reason, a common figure) on your bill? CA offers the following advice (which I'm enhancing with my own tips, too):

• Cancel your credit card and initiate a chargeback - You can do these together when you report the fraudulent charge. Your credit card company will automatically issue you a new one, and you can usually report fraud over the phone with no paperwork.
• File a complaint with the FBI - This is not really appopriate if your card has been stolen and used by an individual; the FBI won't likely investigate such a small scale crime, but it will look into a company that's billing you illegally for its own profit. Report their name, phone number, charge amount, and any other information at the IC3.
• Check your old statements - You may have been being charged for months without knowing it.
• Scan your computer for viruses and spyware - Here's how.
• Do NOT call and ask for a refund - Sure, they'll give you a refund... but this will also keep the authorities at bay and let the operation keep running against thousands of other people. Report them to Johnny Law!