7 Important Credit Card Frauds You Need to Know

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Credit card fraud isn’t something that you want to mess around with. It’s a horrible thing to happen to anyone, especially when it comes to your well-protected and built-up credit score.

That’s why it’s more important than ever, especially in today’s digital age, that you educate yourself on the types of credit card frauds out there and how you could become victim of them. After all, awareness is the first key to protecting yourself from any nefarious criminals out there. We’ll go through everything you need to know about credit card fraud in this article, from the importance of credit card alerts to all of the types of fraud you need to know about.

Application Fraud

Right, so the first item on our list is one of the most common types of credit card fraud that you need to keep in mind. It comes in tandem with identity theft when other people apply for credit cards in your name. These criminals will first steal documents that are needed for such applications and start applying to a ton of cards in your name.

One of the safeguards that banks have in place for this type of fraud is by requiring you to present original documents only when applying for cards. However, a lot of banks have online applications, meaning these thieves can simply enter your information online and start applying to tons of credit cards. This can be disastrous for your credit score.

Credit Card Imprints (Electronic or Manual)

Another form of fraud is something called credit card imprints, which can either be electronic or manual imprints. This means that someone has taken the information from the magnetic strip on your card. This information is then used to make fake cards or to complete transactions in your name.

Card Not Present (CNP) Fraud

This type of fraud can only happen if someone knows the account number on your credit card and its expiry date. This person can then use your card without being in physical possession of it, since they know those two important pieces of information.

Even though a lot of merchants now require people to state the security number on the back of their cards, if thieves already have your account number, chances are that they know the security number as well.

Counterfeit Card Fraud

Counterfeit card fraud occurs when someone skims the information on the magnetic strip on the back of your card and creates a completely new card that has your information. It’s basically an exact copy of your credit card, meaning that they can use this card at any merchant without a problem.

Make sure to keep your account details close at hand in order to keep this type of fraud from happening to you.

Lost or Stolen Card Fraud

This type of fraud is one that’s one of the most common because it only involves someone else taking possession of your card because they stole it from your hand or you lost it somewhere along the way. Criminals will then take the card that they’ve stolen and make purchases with the card.

It’s more difficult for these thieves to make physical purchases with this kind of fraud. However, making online purchases is going to be incredibly easy for them.

Card ID Theft

Card ID theft happens when a thieve steals your card information and uses that information to take over your card’s account or create an entirely new account. They will be using your name when opening these new accounts and is definitely a big one to watch out for.

Mail Non-Receipt Card Fraud

This type of fraud happens whenever the criminal has been able to intercept your new credit card in the mail, register the card under your name, and begin making purchases. This all happens while you’re expecting to receive your card in the mail.

Credit card theft and fraud are some of the worst things that can happen to you. They take a long time to recover from and can completely destroy your credit score. Be sure to keep your account information close at hand and don’t let anyone use your credit cards. Safety first!