Credit Card Fraud: Types & Prevention

What is Credit Card Fraud?

Credit card fraud refers to a scammer using your credit card number and PIN or your stolen credit card for financial transactions from your account and without your knowledge.

How is Credit Card Information Usually Stolen?

  • Skimming: Scammers place a card skimmer, which is a device that is kept on the credit card swiping machine. This device will take in your credit card information when your card is swiped for an actual purchase.
  • Dumpster diving When you discard your bills or documents with your full credit card number on them, thieves can retrieve these details and commit fraud.
  • Hacking: Thieves can hack companies with whom you have had transactions or firms that perform credit card processing activities. They will then engage in data breaches.
  • Phishing: Scammers will persuade consumers to provide their sensitive data by tricking them.

What are Some Examples of Credit Card Fraud?

  • Counterfeit and skimming frauds
  • Card not received fraud: Customers not receiving their cards
  • ‘Card not present’ fraud
  • Lost and stolen credit card fraud
  • Incorrect card application fraud

What is an Unauthorised Credit Card Charge?

When your credit card is used for a transaction by someone else without your knowledge, it is known as unauthorised charge. This can happen when you lose your card or when your card or card information gets stolen.

What is the Meaning of a Counterfeit Credit Card?

A counterfeit credit refers to a fake card that has actual credit card information on it. The card information will belong to the victim and it will have encoded magnetic strips and the logo of the credit card issuer.

What are Some of the Ways to Prevent Credit Card Fraud?

  • Destroy any bill or document that has your credit card information before discarding it.
  • Do not give out your credit card formation when someone calls or emails you.
  • Always keep your credit cards safely with you.
  • If your card gets stolen or lost, report right away and get it cancelled.
  • Be careful while using your card for online transactions.

Moreover, you can buy an credit card protection plan to protect yourself against financial losses in case of fraud.