what constitutes credit card fraud- How Fraudsters get details

Nearly 8.8 Billion USD Report as Fraud in FTC in 2022. Are you shocked? This is a huge number of scams in the Credit Card Industry. These statistics are more than 30% compared to 2021. Every year credit card scams increase, so we can not take it easy when we use credit cards.

With some awareness, and some help of technology we can reduce the risk of credit card scams. So I will show in this blog post, I will explain how to protect credit cards from scams with easy steps

what constitutes credit card fraud

Credit Card Fraud Is a type of identity theft or we can say stealing information like phone numbers, names, and banking credentials and using them illegally like stealing money.

Credit card fraud is a serious issue not only in the USA but also in European countries. Govt. issues strict laws against the illegal use of credit cards, but the numbers show there is no sign of decreasing online scams worldwide. You can read the full report on the FTC about How credit card scams increase in the USA.

what constitutes credit card fraud- How Fraudsters get details 1
Source: Federal Trade Commission

why credit card fraud detection is important

Credit card involves the unauthorized taking of another’s credit card information and using it for illegal purposes or stealing money from the victim’s accounts. Credit card fraud is a significant issue for individuals, organizations, and the economy. The significance of understanding credit card scams is:

1. For Individual

Financial Loss: The first drawback of credit card scams is losing money. Victims of scams can suffer financial losses due to unauthorized access to their credit cards. Victims are responsible for the financial loss until the issue not resolved.

Identity Theft: It refers to the loss of personal details like phone numbers, names, backing accounts, social media login details, and sensitive data. Usually, Credit card fraud involves stolen personal information, which can leak identity theft online.

The leaked information is used by the hacker illegally online such as opening an online account or using the details in criminal details.

Credit Card Scamming
what constitutes credit card fraud

2. Business

  • Businesses can lose the users’ data that are used by the users when they are payments online.
  • Businesses can suffer financial loss due to cyber hacking.
  • Online scams with any business can damage the company’s reputation which is most important for any company.
  • Credit card fraud can make businesses and customers pay more for things like preventing fraud, checking it, and giving back money.

Types of Credit Card Fraud

To understand credit card scams it is necessary to understand types of credit card fraud.

1. Identity theft

Identity theft is a type of cybercrime when someone’s data is stolen by cybercriminals. The leaked data may be your personal information, names, addresses, or account details.

Cybercriminals use these stolen details for illegal purposes, victims may face regulatory consequences.

2. Card-not-present fraud

It is a type of credit card fraud that happens when a user’s credit card is used by cybercriminals to purchase online or over the phone without physically having the card. It is like using a victim’s card without the presence of a physical card.

3. Counterfeit card fraud

When a person uses the card for shopping, they swap their card on the credit card reader machine. Many times fraudsters attacked skimming devices to record credit card details. After getting credit card details fraudsters make fake cards and use them to steal money. This is mostly happened in the Gas stations.

4. Lost or stolen card fraud

Losing or having your card stolen is quite straightforward. If you misplace your credit card or it is taken from you, someone could discover it and make unauthorized purchases.

5. Skimming

Skimming is the device used to record the information on credit cards. Skimming occurs when a deceitful individual discreetly attaches a small device to a card reader, such as those found at ATMs or gas pumps. This device covertly captures the data from the magnetic stripe on your card when you use it. Subsequently, they can exploit this information to create counterfeit cards or pilfer your funds.

how does fraud happen on credit cards

1. Phishing scams

Phishing is a cybercrime that uses emails to spread malware or viruses to steal credit cards. Hackers send tons of emails to trick people. How do they get an email list of the Users? This answer is very simple. The leaked online data are available on the dark web. The dark web is the part of the internet, according to the research, it is 96% of the internet.

hacker, scammer, scam, what constitutes credit card fraud
what constitutes credit card fraud

They send you fake messages that look real, like emails or texts. These messages try to make you share your personal information, like passwords or credit card numbers. These emails look genuine and were sent by the bank.

2. Malware and hacking

Malware and viruses are the Android Application or Windows software that is designed to steal users’ money. Once they get Into PC or Phones, they can do anything. It can do bad things, like stealing your information or damaging your device.

3. Shoulder surfing

Shoulder surfing happens when someone gets too close to you, like peeking over your shoulder, to see what you’re doing on your phone, computer, or ATM. They might attempt to catch a glimpse of your passwords or other personal information.

4. Social engineering

Social engineering is a sneaky tactic where someone deceives you through manipulation and persuasion, rather than resorting to hacking or theft. They may adopt a false identity, such as pretending to be a friend or an employee, in order to manipulate you into doing things you shouldn’t, like revealing your passwords or giving them money. It’s essentially a scam that relies on clever words rather than fancy gadgets.

Protecting Yourself from Credit Card Fraud

1. Use VPN Like NordVPN, Shurfshark

VPNs are very useful when we use devices online. VPNs are designed to protect the privacy of the user by encrypting the data. When we send the data online, VPNs encrypt the data packet and send our data very securely.

Not only encryption, VPNs filter the malicious traffic, and block unauthorized access by scammers.

2. Use strong and unique passwords

The most common weakness of the people that set passwords like “1234”, “ABCD”, or their name or phone number. These passwords are very easy to crack by cybercriminals.

Remembering the passwords of different accounts is very difficult. I have easy tips please use Password Manager which encrypts the data and helps us to keep our passwords safe online.

3. Regularly monitor your credit card statements

Turn On the instant SMS alert, or email statement when you are using credit cards online. If anyone tries to steal your money, it will get immediate alerts from the bank. So you can take action against the fraud as soon as possible.

4. Never share your details on Phone calls

Scammers use the trick, they call various people and tell them their credit card is about to expire or their credit card freezes immediately. If you want to access back your credit card please share the Credit card number and OTP with us.

Literally, people share the details without knowing the consequences of it. Credit Card issuer or Bank never calls to the users.

5. Never Share the Detila to Facebook Friends

This incident happens to me, I think it happens to many people. Cybercriminals send Friend requests by using Girls if you are male and send friend requests as Boy if you are female.

After making friends, cybercriminals truck the people and try to get personal details like credit cards, and debit cards for stealing money.

Reporting Credit Card Fraud

Credit card fraud report you need to take some action immediately.

1. Reporting the incident to the Federal Trade Commission (FTC)

The first step if you are a victim of any fraud, report it immediately to the authorities. If you are a citizen of the USA, then click the below button to register a complaint on FTC.

2. For UK and European citizens

If you are a citizen of the UK and European countries, report immediately to your Bank credit card issuer. It is the best way to report a complaint against credit card fraud.


Hi, I am Inderjeet, and welcome to my blog on Home and Garden. I started this blog to share my insights, tips, and experiences on various topics related to plants, shrubs, juniper and how to care indoor plants.
Thank You

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