1. What is credit card fraud and how can I protect myself from it?

Credit card fraud is any unauthorized use of someone else’s credit card or account information for the purpose of making purchases or obtaining money. This can include stolen or lost cards, unauthorized charges made by someone else, or identity theft.

To protect yourself from credit card fraud, follow these steps:

1. Keep your credit card safe at all times – don’t lend it to others and don’t leave it unattended.
2. Keep your PIN secure and don’t share it with anyone.
3. Be cautious when using your credit card online – only input your information on secure websites that you trust.
4. Monitor your bank statements regularly to check for any unauthorized charges.
5. Sign up for transaction alerts from your bank or credit card company so you can be notified of any suspicious activity.
6. Use strong, unique passwords for all of your online accounts and change them regularly.
7. Be wary of unsolicited emails or phone calls asking for personal or financial information.
8. Consider using a virtual credit card number when making online purchases, as this can help protect your actual credit card number from being stolen.
9. If you suspect fraud on your account, contact your bank or credit card company immediately to report it and freeze the account if necessary.
10. Take advantage of fraud protection services offered by many banks and credit card companies.

Remember to always use caution when sharing personal and financial information, as prevention is the best defense against credit card fraud.

2. What should I do if I suspect credit card fraud has occurred?

1. Contact your credit card company or bank immediately: The first step to take if you suspect credit card fraud is to contact your credit card issuer or bank. They have specialized fraud departments that can guide you through the process of reporting the fraud and protecting your account.

2. Review your recent transactions: Before contacting your credit card company, review your recent transactions for any unauthorized charges or suspicious activity. You can do this by checking your paper statement or logging into your online account.

3. Monitor your account: Keep a close eye on your account activity over the next few days and weeks for any new fraudulent charges. If you notice any, report them immediately to your credit card issuer.

4. File a police report: If you have evidence that someone has used your credit card without authorization, file a police report as soon as possible. This will help with future documentation and may be required by your credit card company as part of the fraud investigation process.

5. Place a fraud alert on your credit report: Contact one of the three major credit reporting agencies (Experian, TransUnion, or Equifax) and request that a fraud alert be placed on your credit report. This will make it more difficult for an identity thief to open new accounts in your name.

6. Change passwords and PINs: To prevent further unauthorized access to your account, change all of the login information associated with it, including passwords and PINs.

7. Consider freezing your credit: If you believe that the compromise of personal information may put you at risk for identity theft, consider placing a security freeze on all three of your credit reports. This will prevent anyone from opening new accounts in your name without first contacting you for permission.

8. Be cautious of potential phishing scams: Fraudsters may attempt to contact you pretending to be from your bank or credit card company in order to get more personal information from you. Do not give out any information over the phone unless you can verify the caller’s identity.

9. Keep documentation: Keep a detailed record of all conversations and correspondence with your credit card company, bank, and any other parties involved in the fraud investigation. This may be helpful in the future when disputing charges or proving fraudulent activity.

10. Stay vigilant: Even after taking these steps, it is important to continue monitoring your accounts for any unauthorized activity. Take precautions such as shredding documents containing personal information and being cautious when providing personal information online or over the phone.

3. How do I report credit card fraud to the police?

If you are a victim of credit card fraud, it is important to report it to the police as soon as possible. Follow these steps to report credit card fraud to the police:

1. Contact your credit card company: The first step is to alert your credit card company about the fraudulent charges or activity on your account. They may be able to cancel the charges and issue you a new card immediately.

2. Gather evidence: Collect any documentation that can support your claim such as receipts, bank statements, and any communication with the scammer.

3. File a police report: Call your local police department’s non-emergency line and ask to file a report for credit card fraud. If you are unsure which jurisdiction you should contact, call your local police department and they will direct you to the appropriate agency.

4. Provide details: When filing the report, provide as much detail as possible about the fraudulent activity including dates, amounts, and any other relevant information.

5. Get a copy of the report: Be sure to get a copy of the police report for your records and for future use if needed.

6. Monitor your accounts: Stay vigilant and continue monitoring all of your accounts for any suspicious activity or unauthorized charges.

7. Keep in touch with law enforcement: If there are any updates or developments in your case, be sure to share them with the law enforcement agency handling your case.

8. Consider placing a fraud alert on your credit report: A fraud alert notifies potential creditors that you have been a victim of identity theft or fraud, prompting them to take extra steps to verify your identity before issuing new credit in your name.

Remember, reporting credit card fraud to the police is an important step in protecting yourself and preventing further fraudulent activity on your account.

4. What are the legal repercussions of credit card fraud?

The legal repercussions of credit card fraud can include fines, jail time, and a criminal record. In the United States, credit card fraud is considered a felony crime and can result in up to 20 years in prison and/or fines of up to $250,000. The specific penalties may vary depending on the severity of the fraud and the laws in the state where it was committed.

In addition to criminal penalties, there can also be civil consequences for credit card fraud. Victims of credit card fraud may choose to sue for damages caused by the fraudulent activity, such as unauthorized charges or fees incurred.

Furthermore, individuals found guilty of credit card fraud may also face consequences from their financial institution. This could include having their account suspended or closed, being required to pay back any fraudulent charges, and giving up any rewards or benefits earned through the use of the fraudulent credit card.

It is important to note that even attempting credit card fraud can result in legal repercussions. Merely possessing stolen credit card information or using a false identity to apply for a credit card are both illegal acts that can lead to prosecution.

5. Are there ways to prevent credit card fraud from happening in the first place?

Yes, there are several steps you can take to prevent credit card fraud from happening:

1. Keep your credit/debit cards safe: Always keep your cards in a secure location and do not share your PIN or account information with anyone.

2. Monitor your accounts regularly: Check your credit card and bank statements frequently to spot any suspicious or unauthorized transactions.

3. Use secure websites when making online purchases: Look for the padlock symbol and ensure that the website’s URL starts with “https” when entering sensitive information.

4. Beware of phishing scams: Do not click on links or open attachments from unknown sources as they may be attempting to obtain your personal information.

5. Enable transaction alerts: Many banks offer text or email alerts that notify you of any transactions made on your account, helping you catch fraudulent activity early.

6. Be cautious with public Wi-Fi: Avoid making online purchases or accessing sensitive accounts while using public Wi-Fi as it can make it easier for hackers to steal your information.

7. Shred sensitive documents: Shred any documents that contain personal or financial information before disposing of them to prevent dumpster diving identity theft.

8. Secure your devices: Make sure all your devices, including smartphones, tablets, and computers, have updated security software installed to protect against malware and hacking attempts.

9. Sign up for credit monitoring services: Consider enrolling in a credit monitoring service that can alert you if any new accounts are opened in your name or if there are any sudden changes in your credit report.

10. Report lost or stolen cards immediately: If you lose your credit/debit card or suspect it has been stolen, contact your bank right away to cancel the card and prevent unauthorized charges.

6. How can I dispute a charge on my credit card?

If you believe there is an error or unauthorized charge on your credit card statement, you have the right to dispute it. Here are the steps you can take to dispute a charge on your credit card:

1. Contact the merchant: The first step is to try and resolve the issue directly with the merchant. Contact their customer service department and explain the situation. They may be able to provide additional information or offer a refund.

2. Check your credit card’s policies: Review your credit card’s policies and terms to understand what charges can be disputed and within what timeframe.

3. Gather evidence: Collect any documentation that supports your claim, such as receipts, order confirmations, or communication with the merchant.

4. Contact your credit card issuer: If you are unable to resolve the issue with the merchant, reach out to your credit card issuer. You can find their contact information on the back of your credit card or on your monthly statement.

5. File a dispute: Your credit card issuer will have a formal process for disputing charges. You may need to fill out a form or submit a written letter explaining the situation and providing evidence.

6. Wait for investigation: Once you file a dispute, your credit card issuer will investigate the charge and potentially remove it from your statement if they find it was in error.

7. Follow up: If you do not hear back from your credit card issuer within a reasonable amount of time, follow up with them to inquire about the status of your dispute.

It’s important to act promptly when disputing a charge as there is usually a time limit for filing a dispute (typically 60 days from when the charge appears on your statement). Failure to act within this timeframe may result in forfeiting your right to dispute the charge.

7. What are the different types of credit card fraud?

-Credit card skimming: This type of fraud involves criminals using a skimming device to steal card information from a legitimate transaction. The information is then used to make unauthorized purchases or create cloned cards.

-Phishing: Phishing scams involve criminals sending fraudulent emails or messages that appear to be from a legitimate company, asking for personal information, such as credit card numbers and login credentials.

-Identity theft: This can occur when an individual’s personal information, including their credit card number, is stolen and used to make purchases without their knowledge or consent.

-Card-not-present fraud: This type of fraud happens when card information is used for online or phone transactions where the physical card is not present. Criminals may obtain this information through data breaches, phishing scams, or malware attacks.

-Counterfeit fraud: Counterfeit fraud refers to someone creating fake credit cards with stolen or fake account numbers. These counterfeit cards are then used for fraudulent purchases.

-Lost or stolen credit cards: When a credit card is lost or stolen, anyone who finds it can potentially use it for unauthorized purchases.

-Friendly fraud: Friendly fraud occurs when a legitimate customer makes a purchase with their own credit card but later disputes the charge. This can lead to chargebacks and losses for merchants if the customer falsely claims they did not make the purchase.

8. Can I be held liable for fraudulent charges on my credit card?

Yes, you may be held liable for fraudulent charges on your credit card, but the extent of your liability depends on the specific circumstances and the actions taken by you and the credit card company. Generally, if you report unauthorized charges promptly, your liability is limited to $50 under federal law. Many credit card companies have policies that further reduce or eliminate this liability for their customers. However, if you do not report fraudulent charges promptly, you may be responsible for all of the charges. It is important to regularly monitor your credit card statements and report any unauthorized charges immediately to limit your liability.

9. What kind of legal recourse do I have if someone steals my credit card information?

If someone steals your credit card information, you have several legal options to address the situation:

1. Contact Your Credit Card Company: The first thing you should do is contact your credit card company immediately to report the theft. They will be able to cancel your current card and issue a new one, as well as monitor your account for any unauthorized charges.

2. File a Police Report: If you know or suspect who stole your credit card information, it’s important to file a police report. This will help in tracking down the thief and building a case against them.

3. Contact Credit Bureaus: You can also contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) and place a fraud alert on your credit report. This will make it more difficult for thieves to open new accounts using your information.

4. Freeze Your Credit: Another option is to freeze your credit with all three credit bureaus. This will prevent any new accounts from being opened in your name without your permission.

5. Consider Identity Theft Protection Services: You may also want to consider signing up for an identity theft protection service. These services can monitor your credit report and alert you of any suspicious activity.

6. Consult with an Attorney: If you have suffered financial losses due to the theft of your information, you may want to consult with an attorney who specializes in identity theft cases. They can advise you on your legal options and help you pursue compensation for damages.

Overall, taking prompt action and working with authorities can help mitigate the damage caused by credit card theft and protect yourself from future incidents.

10. How can I tell if a website is secure when I make a purchase online?

There are a few ways to determine if a website is secure when making a purchase online:

1. Look for “https” in the website URL: A secure website will have “https” at the beginning of its URL instead of just “http”, with the “s” standing for secure.

2. Check for a lock icon: Secure websites will usually have a lock icon either next to the URL or in the address bar of your browser. This indicates that the connection between your computer and the website is encrypted and secure.

3. Check for trust seals or logos: Many e-commerce websites display trust seals or logos from security companies like Norton, McAfee, or Trustwave. You can click on these logos to verify their authenticity.

4. Read the privacy policy and terms and conditions: A legitimate and secure website will have clear privacy policies and terms and conditions listed on their site.

5. Use reputable payment methods: If possible, use reputable and trusted payment methods such as PayPal or credit cards, which offer additional layers of security and protection against fraud.

6. Check for reviews or ratings: Before making a purchase, check for reviews or ratings from other customers to ensure that others have had positive experiences with the website.

7. Use caution with unfamiliar websites: If you are not familiar with a website, do some research before making a purchase to ensure its legitimacy and security measures.

Remember to always trust your instincts when it comes to making purchases online. If something seems off or too good to be true, it’s best to avoid making a purchase on that particular site.

11. How do I get back money that was taken out of my account due to credit card fraud?

If money was taken out of your account due to credit card fraud, you should take the following steps:

1. Contact your bank or credit card company immediately: The first step is to contact your bank or credit card company to report the fraudulent transactions. They will be able to freeze your account and investigate the matter.

2. File a police report: It’s important to file a police report as soon as possible, as this will provide you with an official document that can support your claim. Make sure to keep a copy of the report for your records.

3. Dispute the charges: Most banks and credit card companies have a dispute process in place for fraudulent charges. You can either do this online or by calling their customer service line. Provide them with all the necessary information, including any documents related to the fraudulent charges.

4. Keep detailed records: Be sure to keep copies of all documentation related to the fraudulent charges, such as emails, letters, and receipts.

5. Monitor your account: Keep an eye on your account activity in case there are any further unauthorized transactions. If you notice anything suspicious, report it immediately.

6. Consider placing a fraud alert: Placing a fraud alert on your credit report can help prevent future fraud attempts.

7. Follow up with your bank/credit card company: It’s important to keep following up with your bank or credit card company until the issue is resolved and you receive a refund for the fraudulent charges.

8. Stay vigilant: Unfortunately, once you have been targeted for credit card fraud, you may be at risk for future occurrences. It’s important to stay vigilant about monitoring your accounts and watching out for suspicious activity in order to protect yourself from future incidents.

In some cases, you may not be able to recover all of the money that was taken out of your account due to credit card fraud. However, by taking prompt action and following these steps, you increase your chances of successfully recovering the funds.

12. How can I increase security to protect myself from identity theft and credit card fraud?

1. Use a strong and unique password for all online accounts and change them regularly.
2. Enable two-factor authentication for all online accounts.
3. Be cautious of sharing personal information online, especially on social media platforms.
4. Only make purchases from secure and reputable websites.
5. Monitor your credit card and bank statements regularly for any unauthorized charges.
6. Consider using an identity theft protection service.
7. Shred sensitive documents before discarding them.
8. Do not give out personal information over the phone or via email unless you initiated the contact and are certain it is a legitimate source.
9. Use a virtual private network (VPN) when accessing public Wi-Fi networks.
10. Keep your devices’ software and security systems up to date.
11. Use a credit freeze to prevent unauthorized access to your credit report.
12. If you suspect you have been a victim of identity theft, report it to the authorities immediately and place fraud alerts on your credit reports with the major credit bureaus.

13. Who should I contact if I am a victim of credit card fraud?

If you have become a victim of credit card fraud, you should immediately contact your credit card company or bank to report the unauthorized charges. You should also consider placing a fraud alert on your credit report and filing a police report. The Federal Trade Commission also has resources for victims of identity theft, including steps to take and sample letters to send to creditors and debt collectors.

14. Is there any insurance that covers losses due to credit card fraud?

Yes, many credit card companies offer some form of fraud protection insurance as part of their services. There are also standalone identity theft insurance policies that can provide coverage for losses due to credit card fraud. It is important to carefully review the terms and conditions of any insurance policy before purchasing to ensure it covers the specific types of fraud you may be vulnerable to.

15. What laws exist to protect consumers from credit card fraud?

1. Fair Credit Billing Act (FCBA): This law protects consumers against unauthorized credit card charges and billing errors. It requires credit card companies to investigate and resolve disputes within a certain timeframe.

2. Electronic Fund Transfer Act (EFTA): This law sets limits on a consumer’s liability for unauthorized transactions made with their debit or ATM card, as well as procedures for resolving errors.

3. Truth in Lending Act (TILA): This law requires credit card issuers to disclose important information about the terms and conditions of a credit agreement, including interest rates and fees.

4. Fair Credit Reporting Act (FCRA): This law regulates the collection, dissemination, and use of consumer credit information. It provides consumers with rights to access and correct their credit reports.

5. Fair Debt Collection Practices Act (FDCPA): This law protects consumers from abusive debt collection practices, such as harassment or false statements made by debt collectors.

6. Gramm-Leach-Bliley Act: This act requires financial institutions to safeguard the personal information of their customers, including credit card numbers, from unauthorized access or disclosure.

7. Payment Card Industry Data Security Standard (PCI DSS): This standard outlines security requirements for businesses that handle credit card information in order to prevent data breaches and protect consumers’ personal information.

8. Identity Theft Assumption and Deterrence Act: This law makes it illegal to knowingly use someone else’s identification without their consent for unlawful purposes, such as fraudulently applying for credit cards.

9. Consumer Financial Protection Bureau (CFPB) Regulations: The CFPB has issued various regulations that aim to protect consumers from unfair or deceptive practices in the financial industry, including those related to credit cards.

10. Federal Trade Commission (FTC) Regulations: The FTC also has rules in place to protect consumers from fraudulent or deceptive practices in the marketplace, including those related to credit cards.

16. What should I do if my credit card is lost or stolen?

If your credit card is lost or stolen, you should immediately contact your credit card company to report it. The company will likely cancel the card and issue you a new one with a new account number. It is also important to monitor your account activity closely and report any unauthorized charges to the credit card company. If possible, try to remember where and when you last used the card and if anyone may have had access to it during that time. You may also need to update any automatic payments or subscriptions linked to the old card with your new card information. It’s important to act quickly in order to protect yourself against potential fraud or identity theft.

17. How will banks investigate cases of suspected credit card fraud?

When a bank receives reports of suspected credit card fraud, they will typically conduct an investigation to determine the validity of the claim. This investigation may involve the following steps:

1. Contact the customer: The first step in any credit card fraud investigation is to contact the customer and verify whether they have made the suspicious transaction or not.

2. Review transaction history: The bank will then review the customer’s recent transaction history to identify any suspicious activity or unusual patterns.

3. Analyze location and timing: The bank will look at where and when the transactions took place to determine if they were made by the authorized cardholder or if they were likely made by a fraudster.

4. Check for fraudulent charges: The bank will also check for any other fraudulent charges on the account, such as purchases made at unfamiliar locations or large transactions that are not consistent with the customer’s spending habits.

5. Contact merchants: If any suspicious transactions were made at specific merchants, the bank may contact them to verify whether the transaction was legitimate or not.

6. Use fraud detection tools: Many banks use advanced fraud detection tools and algorithms to identify and flag potential fraudulent activity on their customers’ accounts.

7. Determine liability: Based on their investigation, banks will determine who is liable for any unauthorized transactions – either the cardholder or the merchant.

8. Contact law enforcement: If there is enough evidence of criminal activity, banks may involve law enforcement agencies in their investigation process.

9. Issue a new card: If it is determined that the card was indeed compromised, banks will cancel it and issue a new card with a different number to prevent further fraudulent use.

10. Provide reimbursement: In case of confirmed credit card fraud, most banks will provide reimbursement for any unauthorized charges made on their customers’ accounts.

18. How are criminals able to commit credit card fraud without being detected?

There are a few ways criminals can commit credit card fraud without being detected:

1. Skimming: Criminals use a device known as a skimmer to capture credit card information from unsuspecting victims at ATMs, gas pumps, or other point-of-sale terminals. The skimmer reads and stores the magnetic strip on the back of the credit card, which contains all the necessary information for making purchases.

2. Phishing: Criminals use phishing scams to trick people into providing their credit card information. This is usually done through fake emails or websites that appear to be legitimate but are actually designed to steal sensitive information.

3. Stolen cards: Criminals may physically steal someone’s credit card and use it to make purchases before the theft is reported.

4. Identity theft: If a criminal gains access to someone’s personal information, they can open new credit card accounts in that person’s name and make fraudulent charges.

5. Insider fraud: In some cases, employees of businesses that handle credit card transactions may abuse their position by taking customers’ credit card information and using it for their own illegal activities.

6. Hacking: Sophisticated hackers can gain access to databases containing large amounts of credit card information and use this data for fraudulent purposes.

To avoid being detected, criminals often try to use stolen credit cards quickly, so they do not raise suspicion or get caught. Additionally, many criminals operate in different countries with weak law enforcement or legal systems, making it difficult for authorities to track them down. It’s important for individuals to monitor their credit card activity regularly and report any suspicious charges immediately to prevent further fraud.

19. Are there different methods for protecting myself when using a debit or a credit card?

Yes, there are different methods for protecting yourself when using a debit or credit card. Some common methods include:

1. Regularly checking your bank and credit card statements: Make it a habit to review your bank and credit card statements regularly to spot any unauthorized charges or suspicious activity.

2. Using strong and unique passwords: When creating online accounts for your cards, make sure to use strong and unique passwords that are difficult for others to guess.

3. Setting up alerts: Many banks offer the option to set up alerts for transactions above a certain amount or for international purchases. This can help you keep track of your card activity and detect any fraudulent charges.

4. Using two-factor authentication: Enable two-factor authentication on your online accounts whenever possible. This adds an extra layer of security by requiring a code sent to your phone or email in addition to your password.

5. Avoiding unsecured websites: Only enter your card information on secure websites (indicated by “https” in the URL) with a lock icon in the address bar.

6. Being cautious with public Wi-Fi: Avoid making purchases or accessing sensitive information while connected to public Wi-Fi networks, as they can be vulnerable to hacking.

7. Not sharing personal information: Never give out your debit or credit card information over the phone unless you initiated the call and trust the recipient.

8. Being aware of phishing scams: Be cautious of emails, texts, or calls asking for personal or financial information, even if they seem to be from a legitimate source. If you’re unsure, contact the company directly using their official contact information instead of clicking on any links provided in the message.

9. Signing up for identity theft protection services: Consider enrolling in an identity theft protection service that monitors your credit report and alerts you to any suspicious activity.

10. Contacting your bank immediately if something seems off: If you notice any unusual activity on your account, notify your bank or card issuer immediately. They can help you take steps to secure your account and prevent any further fraud.

20. Are there any steps that merchants should take to reduce the potential for credit card fraud?

1. Utilize fraud detection tools: Many payment processors offer fraud detection tools that can help identify suspicious transactions, such as abnormal purchase amounts or multiple transactions from the same IP address. Merchants should make use of these tools to flag potential fraudulent activity.

2. Use Address Verification System (AVS): AVS verifies the billing address provided by the customer with the address on file with the credit card issuer. This can help reduce fraud for transactions where the physical card is not present.

3. Implement two-factor authentication: By requiring customers to enter a code or password in addition to their credit card information, merchants can add an extra layer of security to their purchases.

4. Stay updated on industry trends: Merchants should stay informed about new fraud tactics and techniques through resources such as industry news and updates from their payment processor. This will help them be more proactive in preventing credit card fraud.

5. Train employees: Make sure all employees who handle credit card information are properly trained on how to detect and prevent fraud. This includes recognizing suspicious behavior, verifying identification, and following protocols for processing payments.

6. Keep systems and software up-to-date: Outdated software and systems can be vulnerable to attacks, making it easier for fraudsters to access credit card information. Regularly update all systems, including POS terminals and e-commerce platforms, to ensure they have the latest security measures in place.

7. Limit refund policies: Fraudsters may try to exploit lenient refund policies for their own benefit. Consider limiting refunds or implementing a strict return policy to deter fraudulent behavior.

8. Monitor chargeback ratios: Monitoring chargeback ratios can help merchants identify patterns of suspicious activity and take appropriate actions to protect themselves against potential fraud.

9. Work only with reputable suppliers: When purchasing stock from suppliers, make sure they are legitimate businesses with secure payment processes in place. Be cautious if a supplier requires cash payments or asks for personal financial information.

10. Secure physical terminals: Merchants should regularly inspect and maintain their POS terminals to ensure they are not tampered with or have skimming devices attached.

11. Keep customer data safe: Merchants should take measures to protect customer data, such as using encryption software and only storing necessary payment information.

12. Use fraud monitoring services: Consider using a third-party fraud monitoring service that can help identify suspicious activity and alert you to potential fraud attempts.

13. Follow PCI compliance guidelines: Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is essential in preventing credit card fraud. Make sure your business is compliant with the latest standards.

14. Balance convenience with security: While it’s important to make the purchase process easy for customers, merchants should also prioritize security measures that may add an extra step but ultimately protect against fraudulent transactions.

15. Monitor transactions for unusual activity: Keep an eye out for any unusual transaction patterns, such as multiple purchases of high-value items, and take action if necessary.

16. Require CVV codes: The CVV code on the back of a credit card provides an extra layer of security by verifying that the customer has physical possession of the card at the time of purchase. Require customers to provide this code for added security.

17. Use manual review for large or suspicious transactions: For larger transactions or those that seem suspicious, consider manually reviewing them before processing to confirm their legitimacy.

18. Use strong authentication methods for recurring payments: To prevent unauthorized recurring payments, use strong authentication methods like tokenization or biometric verification.

19. Educate customers about fraud risk: Provide resources and information about potential fraud tactics to your customers so they can be aware and cautious when making purchases online.

20.ID verification processes: Implement additional identity verification processes, such as requesting a copy of a government-issued ID, for higher-risk transactions or new customers.