Credit card fraud is one of the most
common forms of fraud circulating today. Fraudsters commonly target credit card
information because it is the primary mode of accepted payment online, making
it an easy target for illegal activities. Over the years, the number of fraud
reports related to credit card has been growing at an alarming rate. Fraudsters
are taking advantage of credit card vulnerabilities every chance they get,
which is the reason why credit card providers, businesses and the government
are constantly finding ways to resolve the problem.
Fraudsters commit credit card fraud
in various ways. The tactics and platform that they use are constantly changing
and varied, making it difficult to issue an all in one solution that can cover
or beat all types of card fraud. To give you some ideas of the different types
of card fraud, see the list below;
- Account Takeover
Fraudsters who commit this type of
fraud begin their malicious scheme by obtaining your personal information. The
plan is to gain access to your personal information without raising any
suspicion. Using your personal information, the fraudster may contact your
credit card provider by assuming your identity and requesting for a replacement
card, using a lost credit card as an excuse.
- Counterfeit Credit Card
Credit card fraud is not only a major concern in card not present transactions (CNP), even
offline stores that require the actual credit card to process sales also suffer
from malicious credit card schemes such as counterfeit credit cards.
Counterfeit credit cards are cloned copies of a legit working credit card. The
only way someone can make a clone of your card is if they have physical access
to your card, which usually happens in restaurants or during shopping. This is
one of the reasons why you shouldn’t hand your credit card to anyone without
your supervision.
- Lost or Stolen Credit Card
This probably one of the most
typical types of card fraud. Fraudsters often take advantage of your stolen
credit card information so they can use it to fund their illegal activities
online without giving away their identity or personal information. Fraudsters
may use various ways to get your information such as, malware deployment,
hacking or phishing scams.
- Application Fraud
This type of fraud is similar to
account take over. The only difference is instead of asking for a replacement card.
Fraudsters use your stolen information to apply for new credit cards and have
them sent to a different address.
These are just some of the most
common types of credit card fraud. Familiarizing yourself with these malicious
schemes allows you to identify fraud faster, giving you the chance to take the
necessary steps to secure your personal and financial information so you don’t
fall victim to the same card fraud scheme. Aside from learning different types
of credit card fraud, it is also imperative to familiarize yourself with the
best solutions and protective options that you can utilize against credit card
fraud.
