FACTA Helps Prevent Credit Card Identity Theft

Credit card identity theft is a prevalent concern in the United States, with consumers vulnerable to new hacks and methods fraudsters develop on a daily basis.

Credit card identity theft refers to when a consumers’ personal finances are accessed through their credit card numbers, which then the fraudsters either use themselves or sell them to someone wishing to commit fraud.

Considering how commonly credit cards are used for purchases, the risk of credit card identity theft is a constant concern for most people. Luckily there are federal policies in place that helps protect consumers against credit card identity theft, primarily through the Fair and Accurate Credit Transactions Act (FACTA).

This policy was added as an addendum to the Fair Credit Repording Act, which is meant to help prevent fraud and identity theft in consumers. Under FACTA policy, businesses operating in the United States must make sure their receipt printing software limits the amount of information shown on receipts.

More specifically, FACTA requires that all but the last five digits of the debit or credit card number be concealed and the expiration date to be completely omitted. By hiding these key pieces of information, the likelihood of credit card identity theft is reduced and makes the fraudster move on to an easier target.

Overview of FACTA Policy

FACTA was enacted in 2003, but businesses were given until 2006 to update their cash registers to meet federal requirements. FACTA applies to all electronically printed receipts including those produced at restaurants, self service kiosks, and cash registers.

However, it is important to note that FACTA does not apply to imprinted or handwritten receipts. In these cases, consumers are advised to used cash for the purchase because they cannot control what happens to their card information after the transaction.

Even with FACTA in place, consumers are advised to take additional precautions to lower their chances of credit card identity theft. One of these steps is issuing a fraud alert on their cards to look out for any suspicions purchases. Another step is asking for a free annual credit report from one of the top three credit reporting agencies; Experian, Equifax, and TransUnion, which is guaranteed under FACTA.

Consumers can look over these reports to confirm that the information is accurate, which is in the databases of these credit reporting agencies. FACTA is in place for more than being a business regulation, as it helps stores protect their customers from malevolent thieves looking to commit credit card identity theft.

Other steps consumers can take to keep track of receipts produced from purchases, or opt not to get a receipt so there is no receipt for fraudsters to find. On this note, consumers should also check to see whether or not their receipt is FACTA compliant and report it to the company if it is not.

Companies that fail to fix these FACTA violations could face fines up to $1,000 per violation, which can quickly add up for any company. Consumers considering filing a FACTA lawsuit should keep a record of all the receipts in question, and note the alleged violations that can be seen.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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