Credit card fraud is a serious issue plaguing the United Kingdom. Research shows that the country leads Europe in the most victims per 1,000 people and the highest losses. As technology and the internet advance, combating fraud becomes increasingly complex. The key to protecting yourself lies in understanding different examples of credit card frauds and staying vigilant.
ID Screen: 6 Examples of Credit Card Frauds
Fraud can take various forms, from simple card theft to elaborate phishing schemes. Learn about the six most common types of credit card frauds and how to stay one step ahead of the criminals.
1. Phishing Scams
Phishers commonly use fake websites and emails to trick people into giving up their credit card information. The emails purport to be from legitimate sources, such as your bank or well-known companies.
However, some scams are less sophisticated, with notable differences between fake and real websites, including spelling and grammar errors and former company logos. Always double-check the sender’s email address and avoid clicking on suspicious links.
2. Stolen Credit Cards
Your credit card or its number may fall into the wrong hands through wallet theft, dumpster diving, or retail database hacking. Thieves can then use the card or its number to make purchases without your consent. Keep your credit card secure and regularly check your statements for any unusual transactions.
3. Skimming
Examples of credit card frauds also include skimming. This type of fraud entails thieves using small devices on ATMs, petrol pumps, and other payment terminals to read the information stored on your card’s magnetic strip. This information can then be used for fraudulent transactions. Protect yourself by inspecting payment terminals for any suspicious devices and using ATMs in well-lit, secure locations.
4. Account Takeovers
Account takeovers occur when identity thieves access your credit card account, often by acquiring your login credentials from your email or phone calls with scammers. Once criminals are in your account, they can order a new card, rack up charges on your dime, and even redeem your rewards points.
They may access your bank account, email inbox, and other accounts. You may not realise an account takeover has occurred for a while because these thieves change your notification settings and other account preferences.
Implement strong, unique passwords for each account, and enable two-factor authentication whenever possible. Continuous identity monitoring can also warn you much earlier.
5. Card Not Present Transactions
The absence of a physical card doesn’t deter thieves. They can use your card number to make online or phone purchases, exploiting the card-not-present loophole. Use virtual card numbers or dedicated payment services for online transactions to enhance security.
6. Application Fraud
Thieves may have your name, National Insurance number, address, date of birth, or other personal identifying information. They can use these details to apply for and receive credit cards. Application fraud can hurt your credit score and go undetected until you check your credit report or apply for credit.
Use ID Screen To Protect Yourself From Examples of Credit Card Frauds
These examples of credit card frauds show how scary identity theft can be. Don’t let these illegal activities wreak havoc on your life. ID Screen monitors, alerts, and protects up to 10 credit cards at a time. Sign up today for comprehensive online protection and enjoy peace of mind that you are safeguarding your financial future.
https://www.smf.co.uk/uk-is-card-fraud-capital-of-europe-think-tank/
https://www.experian.com/blogs/ask-experian/what-is-account-takeover-fraud-how-to-prevent-it/
https://www.synovus.com/personal/resource-center/financial-safety-and-security/types-of-credit-card-fraud/
