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thanks for watching techwiki click the subscribe button then enable

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notifications with the bell icon so you won't miss any future videos

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so aren't credit cards great the rewards programs are fantastic you can buy

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things now and pay for them later and the reasonable interest rates mean that

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i'm just kidding about that last one but obviously there's a huge difference

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between you using your own credit card irresponsibly and someone else deciding

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to commit credit card fraud and run up a bunch of charges on your account and

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these days is often much easier for criminals to forget about stealing hard

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currency like the highwaymen of yesteryear and instead focus on ripping

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off credit card numbers so they can charge as much as they want

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well up to the victim's credit limit anyway but that leads us into another

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big advantage that credit cards have over cash if your card number gets

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stolen your credit card company has technological measures in place to

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detect and put a stop to fraud but how in the world do they do this well

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perhaps unsurprisingly major payment processors mine huge amounts of data

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from their card holders and they know a great deal about their spending habits

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and while that might sound a little creepy in this age where it feels like every smartphone and computer is trying

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to learn about us it's also a key way that

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companies like visa and mastercard detect fraud you see odds are that you

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mostly swipe and tap your card in and around the areas where you live work or

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frequently visit now as you do this your credit card company builds a picture not

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only of where you spend your money but how much and how frequently so over time

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they get an idea of whether you're a high roller with money to burn or if you

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follow grandma's advice and only use plastic in emergencies so if a

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transaction goes through for far more money than you usually spend

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or from some far away locale this will automatically trigger the car company's

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payment processing system to flag that transaction and mark it as potentially

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fraudulent as the odds are that it wasn't you making the purchase however

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if you've ever done something unusual like drive down to t01 in one weekend

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for some dental work you might have had your credit card work just fine well it

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turns out that your credit card carriers computers look for patterns that

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wouldn't be obvious to us mere mortal humans now oftentimes thieves will use

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stolen credit card numbers to buy something small at first to test the

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card before moving on to grand theft so a stick of gum followed by a brand new

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kitchen is going to raise some eyebrows in american express and some more

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advanced methods can track the ip addresses of where transactions

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originated from so if they see a charge tied to an ip address that's been used

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in the past for fraud you might get a fraud alert on your phone or pc so that

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you can contact your card issuer and tell them whether you've been scammed

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and many banks employ similar technologies to protect money that you

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already have in your bank account in fact if someone drinks a ton of money

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out of your account fraudulently the bank generally has to give you that

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money back as long as you report it quickly enough and since banks don't

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want to have to foot the bill for theft they definitely have an interest in

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keeping your cash as safe as possible

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but remember that these systems aren't perfect in fact it's their errors that

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allow them to continue to improve so keep an eye on your statements and

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sometimes they can even work too well if you've gone on vacation to some exotic

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place and started using your card without telling the company first it may

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have ended up accidentally flagging your card when you tried to use it to buy a

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mai tai or some bar in the caribbean so it's generally considered a good idea to

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give them a ring before heading out on a big trip now of course with huge credit

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card companies and banks using machine learning and artificial neural networks

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to more effectively identify fraud patterns and develop new algorithms for

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catching it there's a lot of secret sauce that goes into protecting

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consumers that's kept away from the general public to keep it out of the

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hands of would-be fraudsters after all i don't think kevin mcallister left the

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plans for his booby traps in plain sight for the wet bandits to find

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and speaking of machine learning or just learning in general are you looking to

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pick up some practical skills then check out skillshare an online learning

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so yeah go check them out okay guys you know what to do dislike like like for

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more bad puns check out our other channels comment down below with video

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