Familiar fraud happens when a family member, usually a child, knowingly or unknowingly uses a credit or debit card without the card holder’s permission.
Kids usually make unauthorized card payments for the following reasons:
It’s important to know that close family friends, caregivers, or anyone who has access to your personal documents and information can also commit family or familiar fraud–to open new accounts, apply for loans or credit cards, make large purchases, or steal your identity.
If familiar fraud happens to you, the issue can normally be resolved with the merchant and your bank. But not all merchants are amenable to refunds, so it’s best to ensure this doesn’t happen in the first place. Here’s what you should do:
Remember, your account is personal and it is your responsibility to not give it out freely, even to your family.