10 Warning Signs of Company Credit Card Abuse


E-Commerce has become much popular with digital advent. It has become easier to operate, sell and grow business online. Credit cards can are used widely to streamline business operations and simplify purchases. With increased use of credit/debit card, it also open up been increased risk of hacking and frauds.

Fraudsters take control of business card account and make unwanted purchases which are difficult to track for the business owner. To separate out such fraudulent transactions by abusing company credit card is not easy and leads to loss of business revenue considerably.

There are certain warning signs which can help you identify abuse of company credit card. Following discussed are such warning signs and what actions the business owner can take to stop abuse and safeguard against further damage.

1. Error on Your Credit Card Statement

When your credit card is used by an unauthorized user, you will find error on your credit card statement. It is a wise practice to go through the statement that you get regularly from your credit card issuer.


When you flag an error such as unauthorized purchase or unauthorized transaction, you take it seriously and report it to credit card issuer asking further investigation. Another measure you can take is if you doubt any fraud, you change your password at the earliest.

2. Error on your Credit Card Report

When you get a credit card report, you review it thoroughly to ensure that the information displayed is accurate, up-to-date and correct. It helps you guard against identity theft. A fraudster makes credit inquiry and uses your information such as your name, social security number or your credit card to open an account in your name.

When he doesn’t pay bill, the delinquent account information is reflected in your credit report. When you find such information, you immediately contact credit card report issuing agency or credit card issuer to draw attention to it. As an immediate measure, you can raise a fraud alert on your credit card account or freeze credit.

3. Your Account has been flagged

Major credit card issuers watch your purchases and spending habits, and when it finds unusual spending, it raises a flag i.e. you will get an alert that there is an irregularity in your account and something could have gone wrong with your account. You might get a call from a bank or credit card issuer to ask about the unusual transaction.

When such things happen, you should request for an emergency credit report and see if any fraudulent transaction has taken place. To prevent further damage, you can block your company credit card or freeze credit.

4. Debt Collectors Calling

You might start getting calls from debt collector and when you are sure that your business has incurred to such debts, you can take it as a warning sign that your account might have been hacked and some fraudulent transaction might have taken place. When such an issue arises, you can send verification letter to the debt collector.

It will help you figure out a real problem. You can also request for a credit report and if find out that any delinquent account has been opened on your credit card, you can set up investigations.

5. Stop Receiving emails from Credit Card Issuer

You receive emails from your credit card issuer notifying transactions and you can keep a track of it. If you stop getting such email even if you made a transaction; you have to take it as a red flag. It is likely that somebody might have changed email address of your company credit card.

Fraudsters do change email address so that when transactions are made emails are directed to them and you want get a hint of it. If such thing occurs, you should contact the card issuer for further action.

6. Unfamiliar Charges on your Credit Card

If you spot any unfamiliar transaction on your credit card account, it might be the case that your card account was hacked. A credit card fraudster can make transaction by entering your card number online or can even use a fake credit card. You immediately contact the card issuer. You might even get write off.

You also need to ensure that the fraudster hasn’t opened any new account. The fraudster can call the card issuer and request for increase in credit for specific reason.

7. Credit Report Has Inquiries from Unknown Businesses

When you see hard inquiries in your credit report that were not made by you, it is an indication that your credit card account has been hacked and the fraudster is asking for credit in your name.

When such an issue arises, you raise an alert on your credit card account and ask other businesses to verify with the company before authorize transactions. You also request a credit report to check if any fraudulent transactions occurred.

8. Bogus Accounts in Your Credit History

It is a smart practice that you check account details in your credit card report every time you get it to run your business well. If you find any account in your report that you haven’t ever opened, it indicates that a fraudster is using your company credit card account.

You should immediately contact the credit bureau and ask to investigate into it. You should also immediately freeze your company credit card account.

9. Bills from Unfamiliar Sources

Every business deals with certain creditors. When you find pending bills from creditors not known in your credit report, there is a possibility that a fraudster is using your credit card account. You immediately report it to creditors in illegal transactions. You also contact the company credit card issuer and take necessary measures to secure your account.

10. Application Denial Based on Your Credit

When you apply for a loan or another credit card, your credit history is considered and you are denied as you don’t hold good credit for reasons unknown. It might happen that your account has been hacked and the fraudulent transactions have affected your credit badly. It is recommended that you monitor your credit profile on card reports consistently.

Follow the warning signs discussed above and prevent your business from fraud! Read more articles on activateenter.

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