What is credit card fraud?
Credit card fraud is a type of fraud that involves the use of a credit card to obtain money or property. This can be done by making unauthorized purchases, using a stolen credit card, or by using a fake credit card. Credit card fraud is one of the most common types of fraud, and it can be difficult to detect. If you suspect that you have been a victim of credit card fraud, you should contact your credit card company or the police immediately.
credit card fraud, act committed by any person who, with intent to defraud, uses a credit card that has been revoked, cancelled, reported lost, or stolen to obtain anything of value. Using the credit card number without possession of the actual card is also a form of credit card fraud. Stealing a person’s identity in order to receive a credit card is another more threatening form of credit card fraud, because it works in conjunction with identity theft. Credit card fraud is a problem that affects the entire consumer credit industry. It is one of the fastest-growing types of fraud and one of the most difficult to prevent.
Credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account, which is controlled by a criminal. The Payment Card Industry Data Security Standard (PCI DSS) is the data security standard created to help financial institutions process card payments securely and reduce card fraud.
Credit card fraud can be authorised, where the genuine customer themselves processes payment to another account which is controlled by a criminal, or unauthorised, where the account holder does not provide authorisation for the payment to proceed and the transaction is carried out by a third party. In 2018, unauthorised financial fraud losses across payment cards and remote banking totalled £844.8 million in the United Kingdom. Whereas banks and card companies prevented £1.66 billion in unauthorised fraud in 2018. That is the equivalent to £2 in every £3 of attempted fraud being stopped.
Different types of credit card fraud
A credit card fraud occurs when someone uses your personal identifying information (such as your Social Security number) to obtain credit cards, loans, mortgages, etc., without your knowledge or permission. The perpetrator then uses those cards, loans, etc. for his/her own benefit. This type of crime is called Identity Theft.
How to protect yourself from credit card fraud
There are several things that you can do to protect yourself from credit card fraud. First, you should never give your credit card number to anyone you do not know and trust. Second, you should always check your statements carefully to make sure that all of the charges are correct. Finally, you should report any suspicious activity to your credit card company or the police.