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