What is Credit Card Fraud?

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Credit card fraud is an umbrella term for theft and fraud committed using or involving a payment card, such as a credit card or debit card. It is important to know that credit card fraud is an appendage of identity theft. According to the United States Federal Trade Commission, 5% of people in the United States have been or will the victim of identity theft. The rate of identity theft increased over 21% in 2008. However, the percentage of identity theft cases related to credit card fraud decreased. Credit card is a financial fraud that people should be vigilant against.

How Fraudsters Get Your Information?

Credit card fraud is not just restricted to a single action. Usually, the first step most credit card fraud is for the person to get your credit card number. There are many different methods out there that can be used to accomplish this.

Here are some ways fraudsters use to obtain your credit card information:

1. Phishing:

This strategy require someone who is a smooth talker and can really deceive. The scammer might get in touch with you via email, phone or some other way, usually claiming to be a representative of the credit card company, and talk you into giving them your credit card information. The scammer might use the tactic that they can get you reduced interest rates and debt payments. They might even tell their targets that they work in the fraud department of the credit card company and they need to verify some things. These scammers sound very official and use the information the victim provide them to carry out nefarious acts.

2. Hacking:

Another way thieves could get your credit card details is through online data breaches. A retail or bank website might get hacked, and your card number could be stolen and shared. A merchant or bank’s database are not the only ones that can be compromised. Sometimes it’s your own computer. A hacker might mange to plant a keylogger or another type of malware on your computer. The hacker might just easily steal your credit card information when you use it for online transactions.

3. Skimming:

Skimming requires the scammer to have a physical scanner that reads the information from your credit card. Skimmers can used to tamper with ATMs, card readers at businesses, and other places where your card is swiped on a regular basis. With these skimmers, credit card data is collected and transferred via Bluetooth to the scammers who can then replicate the cards and go on a shopping spree.

4. Other:

Other less technological means might involve waiters and retail employees skimming your credit card and then using it to make small purchases that are very often missed by the victim. The most obvious form of credit card fraud id theft involving your wallet, purse, a dropped card or an unlocked card. A thief might go through the trash to find discarded billing statements and then use your account information to buy things.