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Credit Card Fraud & How To Avoid It

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Created on
May 5, 2023


What’s Inside

Different types of credit card fraud are a global socio-economic problem. This article will talk about all things related to credit card fraud. From recognising different types of credit card fraud to prevention methods, you'll know everything practical by the end of it. 

Types Of Credit Card Fraud

Credit card-related fraud is seen in multiple forms and can happen by phone, online, in person, and by text. The most common credit card frauds are listed below:

Fraud by Application

Criminals use stolen confidential information such as the cardholder's name, official address, social security number, and birthday to make a credit card application. This fraud usually goes undetected unless the victim checks his credit report or applies for a card himself.

Card-not-present (CNP)-related fraud

The scammer steals the actual credit card along with the holder's personal information and makes purchases by phone or online. This type of fraud is challenging to prevent since no card is present physically for examination, and the merchant establishment cannot verify the card user's identity.

Account Takeover

The scammer contacts the credit card company claiming to be the legal cardholder, and accesses the account to change the PINs. Thus, the bank deems any further transaction fraudulent when the genuine cardholder attempts to use their card.


Skimming is done using skimmers, devices for stealing credit card-related information from the card's EMV chip. A scammer may use an illegal card reader to conduct fraudulent transactions by scanning your card through your bag, purse, or wallet.

Stolen or Lost Cards

Yet another simple way is stealing a credit card or using a card that its actual owner has lost it. Thieves can also intercept cards in transit when they are in the post.

Steps for Fraud Prevention and Protection

Even though complete protection from credit card-related fraud is impossible, specific steps may be taken to minimise the risks, which are as follows.

  • Never provide personal or sensitive financial information to any suspicious email, phone call, or text.
  • Protect yourself against skimming by using an RFID-protection wallet.
  • Never allow a bystander or an employee to see your account and PIN when using an ATM in-store.
  • To prevent CNP-related frauds, check your residential mailbox regularly if you expect a credit card. Moreover, keep all financial statements with you securely so they're challenging to obtain.
  • Set up account alerts that automatically warn about suspicious transactions.
  • Never leave a credit card lying about; abstain from allowing any website to 'remember' the card number. 
  • ­Report stolen or lost cards immediately to avoid liabilities on any fraudulent charges on the card.
  • Always carefully scrutinise the monthly statement to identify suspicious or fraudulent account activity.


The global menace of different types of credit card fraud is an alarming crime that requires much regulation and consideration. Just so you know – the steps mentioned above will only help prevent and protect you from this hazard.

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Frequently Asked Questions

What are the five ways to avoid credit card fraud?

  1. Keep credit cards in a safe place 
  2. Never disclose personal or financial information to an unknown party
  3. Never allow websites to store the card's details
  4. Verify site security when shopping online
  5. Report stolen or lost cards immediately

What is credit card fraud, and how do you avoid it?

Credit card fraud happens when the card is illegally used by someone other than its lawful owner. It is a form of identity theft and may be avoided by following the five steps mentioned above.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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