It's true that if you have a credit card, you will be a sufferer of credit card fraud sometime in your life. Some research also propounds that rather than avoiding fraud, you are most likely to experience them.

Types Of Credit Card Frauds

Frauds related to credit cards can happen anytime and anywhere. It can happen online, via text, phone, or in person. The offenders often dupe with fake emails and links.

Various other methods other than above of credit cards frauds are given below:

Application fraud

The offender impersonates you by using your documents to get a new credit card under your name. If he succeeds in his deeds, he can perform monetary scams with that valid card.

You should always be aware of the usage of your documents or the copies of the documents to avoid this fraud. If you have multiple copies of the documents, shred them properly before disposing of them.

Dumpster Diving

Most often, people casually discard their bills which contain their credit card details. Offenders can use that to retrieve bank details of the one and can use it for scams. This is known as Dumpster Diving.

To avoid this, dispose of your bills and documents properly by shredding them or scratching them.

Skimming

In Skimming, a criminal steals your card details with the help of a device called a Skimmer. When you swipe your card through a skimmer, it will store all your card details. Then the offender copies that information onto another card.

You should always use chip-based credit cards instead of magnetic strip based, as it is more secure. Never swipe your card on a machine that looks suspicious to you.

Keystroke Capturing

Today, Keystroke Capturing is the most common credit card fraud technique. Offenders use keystroke logging through software to fetch your credit card details. This happens if you click on a malware download redirecting link and that malware gets downloaded to your system.

In that case, it captures every key you press and records all your Ids and passwords. To prevent this, always download antivirus software on your system. Never click on unknown links; always use a virtual keyboard to feed Ids, passwords, and other personal information.

Hacking

It is one of the oldest methods of credit card fraud. As technology gets advanced, hackers are also advancing their skills. They can steal your information by hacking your device. They can also steal your data from the firms with whom you have transacted.

It is difficult to predict when the offender will hack your device. It would be best if you were careful while doing any online transaction. Never fill in your details on websites that are unknown and suspicious to you.

SIM Swap

Sometimes offenders also call a mobile operator and pretend to be a cardholder requesting a duplicate sim. Additionally, they can ask the operator to deactivate the original number. Then the fraudster can create a new id, can execute transactions.

To prevent this, immediately inform if your sim has been blocked or if you receive any message regarding duplicate sim requests.

Phishing

It is a straightforward method of credit card fraud. The fraudster will send you mail in the name of any bank organization. When you open the link, it will redirect you to another strange website.

You will be asked to fill in your details there, and you will fall into his trap.

Remember that no banks ever send you emails or messages to fill in your details.

How Are Credit Card Theft And Fraud Offenses Punished?

Credit card fraud and thefts are prosecuted either at the state level or at the federal level.

State Level

Most credit card fraud and theft cases are handled at the state or local level. Different states have different provisions for the prosecutor, which depend on various factors. The factors include the amount stolen by him, his criminal history, his age, etc.

Generally, the prosecutor is punishable by up to 2-3 years in jail and a fine of up to $10,000. The amount can vary from state to state. If the crime was against an older person, he could be overhead to a third-degree punishable felony by 10 years in the lockup.

Federal Level

If credit card fraud and theft affect foreign or interstate commerce, it refers to a Federal Crime. It is not so, though, as it sounds. Using a card issued to someone in another state is also considered a federal crime.

The punishment for a federal crime is up to 20 years in prison, forfeiture of personal assets, and an acceptable amount. According to the Department of Justice, credit card fraud comes under several more categories.

The categories include financial institution fraud, mail, wire, and computer fraud. Under these, the offender can also have jail for up to 30 years.

How To Prevent Credit Card Frauds and Theft?

Monitor all your online transactions, credit report, and monthly statements.

Sign-up to your credit card accounts regularly for real-time text or email alerts.

Create a strong PIN and password. Avoid using your birth date, contact number, etc. Always use a lowercase, uppercase, unique character, and number mix password.

Never share your CVV, card number, or OTP with anyone, and change it at regular intervals.

Before making an online purchase, always cross-check the website. If you find any disparity, do not make any payment.

Shred your documents and credit card bills before discarding them.

Never sign on a blank credit card receipt; contact your bank if you see a blank space.

Always keep the customer care service number of your credit card with you. If you have lost your credit card, immediately contact customer care and block it.

What To Do If You Are A Credit Card Fraud Or Theft Victim?

If you are a credit card theft or fraud victim, immediately contact your credit card company. Ask them to block your account, and they will remove the unauthorized transactions.

Update your passwords and PINs, and contact any significant credit bureau among Transunion, Experian, or Equifax.

They will set up a security alert on your credit report. And other bureaus will also be made aware of that as well as you will also receive a copy of that report.

Go through your bank statement and if you find any unfamiliar or suspicious transactions, then contact your bank.

Conclusion

Unfortunately, there is no way to protect yourself from credit card fraud completely. But you can use the above-given methods to protect yourself to some extent. There are billions of credit cards in the US, and millions of people are victims of credit card theft and fraud every year.

Continuously monitor your bank and credit card statements and inform your bank of suspicious transactions.