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5 Types Of Credit Card Fraud That You Should Be Aware Of

Incidents of credit card fraud are becoming more common, and you should be aware of them to keep yourself protected.

Identity Theft

This occurs when a criminal steals someone's personal information, such as their name, address, and credit card details, to apply for credit cards or make unauthorised purchases.

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Card Skimming

This happens when a criminal installs a small device on a payment terminal that captures credit card information when customers swipe or insert their cards. The thief can then use the stolen data to create counterfeit cards or make unauthorised purchases.

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Phishing Scams

Criminals use phishing emails or phone calls to trick victims into providing their credit card details or other sensitive information. These scams often appear to be legitimate requests from financial institutions or other trusted entities.

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Chargeback Fraud

This occurs when a consumer disputes a legitimate credit card transaction and falsely claims that they never received the goods or services. The consumer may receive a refund, while the merchant loses both the money and the goods.

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Card Not Present Fraud

This type of fraud occurs when a criminal uses stolen credit card information to make purchases online or over the phone, where a physical card is not needed. To avoid this type of fraud, many merchants require security measures, such as two-factor authentication, etc.

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