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Credit card fraud is a broad category of fraud committed using a payment card. The purpose can be to obtain goods, pay for services, or even control an account. If a card is lost or stolen, credit card fraud may be a way to get the goods without the owner’s knowledge.
Skimming
Skimming is a common form of credit card fraud that involves using malicious JavaScript to capture credit card information as it is entered. These attacks can target a wide variety of sites, including payment processors and site databases. They have affected hundreds of thousands of websites, including high-profile companies like British Airways and Macy’s.
The most common places where skimming takes place are gas stations, restaurants, and retail outlets that process credit card payments. In these locations, the chances of being noticed are lower. However, it is not impossible to detect skimming in busy areas. You can take steps to protect yourself from this type of fraud by enabling your smartphone to send notifications to your bank or credit card provider if you notice something unusual.
Skimming can cause huge losses for consumers and businesses, according to industry sources. If your credit card number is stolen, the fraudulent transactions can be recorded in credit grantor and merchant databases, preventing you from using your existing accounts. Many credit card companies have a zero-fee policy, which means they refund any fraudulent charges and send you a new credit card.
Unauthorized purchases made with stolen or misappropriated credit cards
Fortunately, there are ways to identify fraudulent charges on your credit cards. You can report any unauthorized charges to your credit card company, as well as your credit report, to prevent future fraudulent purchases. You can also file a police report if you believe someone has used your card. However, the police report should only be filed after you’ve verified that the charges are fraudulent.
Although credit card frauds can be small in scale, some cases involve large amounts of money. For example, Nadia Minetto purchased tens of thousands of iPads and iPhones from Apple and resold them. She began using the company card for fraudulent purposes in May 2009, converting a rewarding side hustle into a $6 million high-tech haul.
A person can also be accused of credit card fraud by falsely making, counterfeiting, or altering a credit card. Under New Jersey law, this type of theft is a Third Degree Crime. The accused must have known that the card had been stolen, forged, or expired.
How to protect yourself
Credit card fraud is a major problem in the United States. According to the Federal Bureau of Investigation, in 2012, credit card fraud cost consumers $7.2 billion. Credit and debit cards are important parts of most Americans’ lives. By using them, consumers assume responsibility for all charges made on their accounts, and those made by others. Identity thieves use personal information to open fraudulent accounts and collect money, so it’s imperative to protect yourself from this type of crime.
One way to prevent credit card fraud is to never store your credit card information on the internet. Even if you’re shopping at a trusted online retailer, you’re at risk of having your credit card information stolen. This is why you should avoid leaving your credit card information on public Wi-Fi, which is frequently tapped by scammers. Instead, use your phone’s hotspot to make online purchases. Another way to protect yourself from credit card fraud is to keep your cards in a secure wallet.
If you suspect that your card is being used by someone else, immediately report it to your credit card company. Also, review your monthly bills and statements for any unusual activity.
