Protect Yourself from Credit Card Fraud Part I – Types of Credit Card Fraud
February 18, 2020 by Chevron Federal Credit Union
Mardi Gras is a time for celebration! We dress up with colorful masks, wear eccentric costumes, and dine on rich foods before the leaner days of Lent begin. For many of us, it’s an opportunity to be someone else for the day.
Unfortunately, there are those that don’t use a fanciful outfit to change their identity. They use your credit card.
According to Shift Processing, credit card fraud is the #1 ranked type of identity theft. $24.26 billion was lost due to payment card fraud worldwide in 2018. The United States, the most credit fraud prone country, made up 38.6% of that.
The reach and popularity of credit cards have made it a major target of fraudsters out there. Here are the most common types of credit fraud to be aware of:
Types of Credit Card Frauds
- Card ID theft happens when the fraudster comes to know the details of your card and tries to use those details to charge it.
- Phishing is a scheme by which the scammer takes credit card details from unsuspecting customers. It’s an online system wherein the perpetrator, posing as a legitimate entity, captures your credit card number, expiry date, and CVV number.
- Vishing (voice phishing) is similar, but here someone pretending to be from the bank or the credit card company calls you to get more information about your card.
- Card Not Present (CNP) fraud happens when the perpetrator uses your CVV number to pretend he is in possession of your card. Merchants use the CVV number when you make online purchases to verify that you are in possession of your card. This verification is not required for in-store purchases. But if the fraudster somehow finds out your credit card number and expiration date, he can try to find the three-digit CVV number by trying various number combinations; he may have to try 1,000 different combinations before he succeeds.
- Credit Card Skimming is a fraud scheme in which a modified POS machine is used to capture your card details. The details are then used to create a duplicate card that can be used to charge your card. The fraudster who wants to withdraw money using your card may even install a spy camera in an ATM to capture your PIN
Now that you know the different types of fraud, check back for the rest of the Protect Yourself from Credit Card Fraud series:
- Part II – Protection Steps
- Part III – How to Spot Fraud
- Part IV – When to Take Action
For more information regarding your security with Chevron Federal Credit Union and how to report a lost or stolen credit card, please visit Security Central.
BALANCE is an amazing resource for all our members to utilize when taking on life's milestones. With trusted guidance available for free, they are ready to help everyone on the path to financial wellness. This article and many more can be found on their website: balancepro.org.