What exactly is credit card fraud?
Credit card fraud occurs when someone obtains your credit card information and uses it for personal gain. Scammers and fraudsters always find a way to get their hands dirty because they have an uncanny ability to find technological flaws. What’s more, guess what? Credit card payment systems have several flaws. Credit cards that have been lost or stolen are occasionally used by criminals to commit fraud. Others engage in illegal transactions without ever touching a credit card. Card-not-present fraud only requires the perpetrator to know basic card or account information in order to access the victim’s funds.
What are the different types of credit card frauds that you might encounter?
Although the list of credit card frauds is endless, we will attempt to cover the most common ones that you may encounter if you are a frequent credit card user.
Application Theft
Application fraud is frequently associated with identity theft. It happens when someone else applies for credit or a new credit card in your name. They will typically steal supporting documents first, which will be used to substantiate their phoney application. Banks have implemented a number of safeguards to prevent this type of fraud. The most important aspect is that only original paperwork is required.
Takeover of an Account
Account takeover is one of the most common types of credit card fraud. In essence, a criminal will obtain all of your personal information and important documents in some manner. This is usually done through the internet. They will then pose as you and contact your credit card company to change your address. They will present proof of identity because they have hacked into or otherwise obtained your personal information. A new card will be sent to the bogus address, allowing the criminal to file charges. This type of deception, unfortunately, is not uncommon.
Cards That Aren’t Real
Making false credit cards takes a significant amount of time, talent, and effort, but that does not deter a determined thief. A card must meet certain complicated security criteria, which is becoming increasingly difficult as cards become more advanced. A magnetic strip, a chip, and, in some cases, holograms are used. A skilled forger, on the other hand, can create these cards with fictitious names and numbers and use them to conduct transactions. The credit card company will not pay for the transaction because it cannot be traced back to a specific user because the card is not linked to an account. By that time, however, the criminal will have already left with their purchases.
FRAUD ON CARD NOT PRESENT (CNP)
If someone knows your card’s expiration date and account number, they can commit CNP fraud against you. This can be done by phone, mail, or the internet. It basically means that someone uses your card without physically possessing it. Merchants are increasingly requiring the card verification code, making CNP fraud much more difficult to perpetrate. However, if a fraudster has access to your account number, they are likely to also have access to your card verification code. Furthermore, the verification code has only 999 possible outcomes. As a result, many crooks try to order small quantities of products until they figure out the correct amount.
CARD FRAUD VIOLATION
The most common method of committing counterfeit card fraud is skimming. This means that a fake magnetic swipe card contains all of your credit card information. This forged strip is then used to create a fully functional counterfeit card. Because it is essentially a carbon copy, fraudsters may use it to pay for specific items by simply swiping it through a machine. Someone with access to your credit card information can also commit this type of fraud.
WEBSITES FOR SPOOF
One of the oldest and most common internet commerce scams is the creation of a “spoof” website. The website will feature a well-known company’s logo and may resemble it in appearance. A quick glance at the browser bar and the URL it contains, on the other hand, may reveal a different story. The genuine URL for Target, for example, would begin with Target.com. A spoof address could be shoptarget.com or something similar.
CARDS WITH A DOCTOR
A doctored card has had its metallic stripe removed by a strong magnet. Criminals do this and then change the card’s details to match those of legitimate cards. This card will obviously not work when a criminal attempts to pay for something. However, they will use their seduction to persuade a merchant to manually enter the card information.
