What is Credit Card Fraud?
Credit card fraud is when someone uses another person’s credit card information without their permission to make unauthorized purchases or transactions. This fraudulent activity can take various forms, and it often involves stealing the victim’s credit card details or using counterfeit cards.
Unfortunately, credit card fraud is becoming increasingly common. You’re not alone in this struggle. Millions of people face credit card fraud every year.
Make sure you are privy to the types of fraud out there so you are prepared for any situation.
Types of Credit Card Fraud
- Lost or Stolen Card Fraud: If a credit card is lost or stolen, it can be used by the person who finds it or steals it to make purchases until the cardholder reports it as lost or stolen.
- Card Not Present (CNP) Fraud: CNP fraud occurs when a fraudster uses stolen credit card information to make online or phone transactions where a physical card is not required. They typically need the card number, expiration date, and the CVV code.
- Counterfeit Card Fraud: Criminals can create counterfeit credit cards by encoding stolen card information onto a blank card’s magnetic stripe. They then use these counterfeit cards to make purchases or withdraw cash from ATMs.
- Application Fraud: In some cases, individuals may apply for credit cards using someone else’s information, leading to new accounts being opened fraudulently in the victim’s name.
- Account Takeover: Hackers or fraudsters may gain access to a person’s credit card account or online banking account to change account settings, add authorized users, or make unauthorized transactions.
- Phishing and Social Engineering: Scammers may use deceptive tactics to trick individuals into revealing their credit card information. This can include phishing emails, phone calls, or texts that appear to be from legitimate organizations.
- Mail Theft: Criminals may steal credit card statements, new credit cards, or pre-approved credit card offers from victims’ mailboxes to commit fraud.
Now that you know the types of credit card fraud out there, here are a few simple steps you can take to protect yourself from any further damage.
Steps to Take if you are a Victim
Step 1: Locate the Card
Was the transaction made with a physical card or an online transaction? Is the card in your possession? If the card was stolen, you may be able to track the last time you had it and retrace your steps.
Step 2: Contact Your Bank
They will be able to freeze your card and prevent the thief from making any further purchases. Be sure to provide details of each fraudulent charge so that your bank has a clear picture of what happened.
Step 3: Review Your Credit Report
Request a copy of your 3-Bureau credit report. If you notice any discrepancies or unauthorized credit accounts, file a fraud report with the credit bureaus. This will prevent the thief from opening any additional accounts in your name.
Step 4: Change Your Passwords
If you suspect someone hacked your card, the fraudster probably has access to your personal information. Change your passwords immediately, particularly for your bank account and any online shopping site.
Step 5: Watch Out For Future Fraud
It’s important to be vigilant in the future to avoid any more instances of fraud. Sign up for alerts from your bank or credit card company to notify you of any unusual activity. Be wary of phishing emails. Never provide personal information unless you are certain that you can trust the source. Also, avoid posting sensitive information on social media, especially your credit card details.
Use data privacy apps, like Hogo, to remove your sensitive information or personally identifiable information from undesired websites that places your identity, finances, or loved ones at risk.
Being a victim of credit card fraud can be scary, but it is important not to panic. The most important thing is to act quickly. Call your bank, review your credit report, change your passwords, keep an eye on your accounts, and be careful in the future. Remember, you are not alone, and there are resources to help you regain control of the situation. Stay vigilant and keep your private information safe so you can enjoy shopping with your credit cards!