Credit Card Fraud: What Is It and How To Protect Yourself Against It

  • By IDStrong User
  • Sep 18, 2020

Credit card fraud is a fact of life, and most Americans have experienced it or know someone who has. Technology has brought with it, new ways for criminals to snoop, and flee with our information. Identity theft is another real concern related to data breaches at credit card and credit monitoring companies. It’s hard to feel safe these days. There are things you can do, however, to keep your credit cards as secure as possible.

What is Credit Card Fraud

Credit card fraud is the illegal, unauthorized use of your credit cards or credit card numbers. Usually, this appears as charges on your account that you did not initiate. Sometimes criminals use credit cards to take out cash withdrawals. Often credit card scams are linked to identity theft. Credit card scams also apply to ACH payments, direct deposits, and prepayment cards.

How Does Credit Card Fraud Happen


 

There are dozens of ways that credit card fraud happens. Criminals are getting cleverer by the day. 

Some of the more common ways are:

You visit a website that is hacked with malware and make a purchase. The hackers now have all they need to charge things on your credit card.

Another common technique is that criminals install malware on a point-of-sale device at a store, like in the Target data breach.

If a bank, restaurant, or credit card company experiences a breach, your account information can be obtained that way also. Pretty much anywhere you pay with a credit card may be vulnerable to hacking.

Skimming is another way thieves grab your credit card details. They install a small device on gas pumps or ATMs which collect your information as you swipe and punch in your codes.

Phishing emails is another way your credit card data may be stolen. Never click links in emails and don’t trust they came from a reputable source. Criminals are very good at making them look legitimate.

Vishing is a form of phishing, but it’s a phone scam where someone calls you to verify your identity or get you to donate, make a payment, etc. and they collect your credit card details that way and then they are off to make purchases. Sometimes they offer you a free gift, and all you have to do is pay the shipping and handling. Do not fall for it; it’s a scam. 

Of course, the old fashion way you may become a victim of credit card fraud is if you lose your wallet or it is stolen. Regardless of how they get their hands on your credit card, you must take quick action if it happens to you to prevent a data breach.

How To Prevent Credit Card Fraud

It is impossible to prevent credit card scams completely, but you can take steps to reduce the possibility and prevent credit card scams which can lead to identity theft and other serious consequences.

Only carry the cards you need when you visit shopping locations or restaurants.

Never give out your credit card number to anyone who calls you.

Do not click links or download attachments in email.

When buying online, only purchase from reputable stores with a secure connection (https).

Never sign a blank credit card receipt.

Save all your receipts and compare them with your monthly credit card statement. Review your statement immediately upon receipt to report any unauthorized activity quickly.

Store PINs separate from debit or credit cards. 

Never lend your credit cards to someone else, even your kids. 

Be cautious of buying from someone in another country or from a flashy website that looks legitimate. 

Stay away from any deals that sound too good to be true, they are. 

Sign up for credit monitoring with IDStrong.com or another company to stay protected.

Before getting gas or using an ATM, check for credit card skimmers.

Shred paperwork which contains your credit card number.

Make a list of all your cards and the bank’s contact information, so you will have it all ready if something happens. 

Change your online access password to credit card accounts often. 

Keep your computer and other devices updated with the most recent patches and antivirus software. 

How To Report Credit Card Fraud


 

If you fall victim to a credit card fraudster, you need to take the following steps as soon as possible.

Report your lost or stolen cards immediately to the bank which issued them. Use the 800-number on the back of the card to report the fraud.

Have the cards canceled and reissued.

Change your online passwords immediately to something very complex.

Add a fraud alert to your credit report. 

Contact the fraud department to dispute the charges so you won’t be responsible for paying them.

After your credit card is stolen, the thieves may attempt to get even more out of you through phishing emails or additional calls. Be on the lookout for anything suspicious, and never pay for anything you did not expressly order.

About the Author
IDStrong Logo

Related Articles

What is the Dark Web: Things You Need To Know Before Accessing The Dark Web

The dark web, also known as the “darknet”, is a portion of the internet that lies outs ... Read More

What is Mail Theft and How to Prevent It in 3 Simple Steps

One of the many ways that identity thieves get their hands on your personal information is through ... Read More

Lost or Stolen Phone? Don’t Panic, Follow These Steps

Most of us are tethered to our smartphones like a lifeline. In these tiny little computers, we car ... Read More

Stolen or Lost Wallet: What to Do?

Anyone who has ever lost their wallet or purse, or had it stolen, knows that instant spark of pani ... Read More

7 Most Common Types of Identity Theft That Can Happen to You

Identity theft is a major concern for many Americans these days with data breaches, ransomware att ... Read More

Latest Articles

Weekly Cybersecurity Recap March 24

Weekly Cybersecurity Recap March 24

Cyber-attacks are a major problem that exposes millions of people to fraud on an annual basis. This week there were attacks on some truly massive organizations like the NBA and PayPal, as well as a cyber security company and a few medical companies.

Independent Living Systems LLC Gets Hacked, Exposing 4 Million Patients

Independent Living Systems LLC Gets Hacked, Exposing 4 Million Patients

Independent Living Systems LLC is a healthcare facility provider for the elderly, physically challenged, and impaired. The company establishes short-term healthcare facilities for those that need extra care.

Rubrik Gets Hit by The GoAnywhere Security Vulnerability: Is Customer Data at Risk?

Rubrik Gets Hit by The GoAnywhere Security Vulnerability: Is Customer Data at Risk?

Rubrik is a security company that specializes in cloud data management services. The company helps store and secure information for customers, and it's vital that it is able to keep that data safe.

Featured Articles

How to Buy a House with Bad Credit

How to Buy a House with Bad Credit

Buying your own home is the American Dream, but it might seem out of reach to those with bad credit. However, the good news is, if your credit is less than perfect, you do still have options and in most cases, can still buy a home.

How Secure Is Your Password? Tips to Improve Your Password Security

How Secure Is Your Password? Tips to Improve Your Password Security

Any good IT article on computers and network security will address the importance of strong, secure passwords. However, the challenge of good passwords is that most people have a hard time remembering them, so they use simple or obvious ones that pose a security risk.

Top 10 Senior Scams and How to Prevent Them

Top 10 Senior Scams and How to Prevent Them

Senior scams are becoming a major epidemic for two reasons. First, seniors often have a lot of money in the bank from a life of working hard and saving.

Free Identity Threat Scan
Instantly Check if Your Personal Information is Exposed
All fields below are required
Please enter first name
Please enter last name
Please enter a city
Please select a state
Please enter an email address
Close