Types of Credit Card Fraud
Unfortunately, many people know more about using their credit cards than they do about credit card fraud. Hopefully, this blog helps you identify the various kinds of credit card fraud before it’s too late!
1. New Account Fraud
The first kind of fraud, also known as "account opening fraud," is when someone uses someone else’s credentials to open a credit card account. For example, if a parent or sibling opens an account in your name, he or she committed credit card fraud.
2. Imprinting a Card Fraud
The second type of fraud is when a person skims information off of someone’s card using a card reader, then creates a fake card to make fraudulent charges. Be wary of using your card to buy items from street vendors and businesses you don’t trust.
3. Card Not Present (CNP) Fraud
If someone can get the expiration date and account number of your card, they may be able to commit fraud without having your physical plastic card, this is called card, not present (CNP) fraud. CNP fraud is why it’s always important to check your purchase history every month.
4. Stolen Credit Cards
In some circumstances, people take credit cards from other’s possession and use the card online until the owner cancels the card. While not as “sneaky” as other forms of fraud, it is simple for people to use.
5. Account Takeover Fraud
Rather than take a credit card, some people will use the information to steal an entire account. After they steal the account owner’s identity, they will open up a new credit card in his or her name and use that to make purchases. This is one of the most dangerous forms of fraud, as the person being stolen from may have no idea that it’s happening.
Credit card fraud comes in a plethora of forms; unfortunately, ignorant family members can cause credit card fraud by mistake when they open or use accounts of others.