Types of Credit Card Fraud

Since people are finding more and more ways to cheat the system, credit card fraud continues to rise. Even scarier, the costs associated with credit card fraud are in the billions, making it a serious problem. It is a problem that needs to be dealt with!

Even worse, these criminals are not only taking your money. Many of them steal your identity in the process. This can make it even worse. You may end up struggling with your finances for several months or even years after a case of identity theft.

There are many different ways that criminals are able to perform credit card fraud. Here are some of the more common types that are used.

One of the most common types of credit card fraud is called account takeover. Account takeover means that someone is able to get all of your information (name, address, social security number, and much more). They may use this in different ways.

Some criminals talk to the bank or creditors and convince them that you moved and have a new address. They may even try to get a new card because you lost it in the move, getting it sent right to them.

If they need documents to accomplish all of this, they simply forge them to convince banks and credit card companies that they are you. Many criminals are skilled when it comes to making documents look authentic and real!

Skilled criminals have been known to make credit card imprints. They are able to steal the information off of your card in order to get your information which they use online. All they really need is the number on the card and the expiration date. However, it is also helpful to have the number on the back too!

Many have the ability to create a fake card. However, it won’t work in the machines. Instead, they just have to convince the merchants to enter it manually which does work.

Counterfeit card fraud allows criminals to make a fake card with a magnetic strip just like your original one. This is usually done by skimming, which means that they hook a machine to a place where people usually use their credit cards. This includes ATMs, gas stations, and much more. Then, they can make a counterfeit card with your information and use it anywhere and anyway that they like.

They will also steal your cards in order to make purchases. Many criminals are still willing to steal your wallet and cards away from you. Because of this, if you lose your card, it is important that you cancel it as soon as possible so you are not liable for all of the charges that someone may use your card for. Many banks and credit card companies will help you if your card is ever stolen. However, you still need to let them know as soon as you figure out it is missing.

Criminals can apply for a credit card (or another line of credit) using your name. This is called application fraud. Even scarier, they will need to forge any documents needed to open up a new line of credit.

If they are trying to get a large amount of money, they may need to have a fake telephone number when the creditor checks for your employment. They may have them call a friend who pretends to be your place of employment in order to get approved.

There are times when someone can take a card that belongs to you right out of your mailbox. This is called mail non-receipt card fraud. What happens is that they get your new credit card out of your mailbox, register it by pretending to be you, and then they are free to use it.

Card not present fraud happens when a criminal uses your card number and expiration date to make purchases. This is also known as CNP and criminals can use your information to buy things online, by phone, or even through the mail. Unfortunately, anyone with your number and expiration date can use your card. They don’t even need to know the number on the back, though that isn’t too hard to get a hold of either!

There are also times when credit card fraud doesn’t affect anyone. In fact, assumed identity fraud happens when someone uses a fake name and address in order to open a new credit card or line of credit. They even forge important documents in order to prove their identity.

There are many ways that criminals try to cheat the system when it comes to credit cards. The most common way is called account takeover where someone can get enough of your information that they can convince creditors that you moved so they send them another card. Application fraud is when they attempt to open up an account in your name! However, they can also try to open an account up using a fake persona.

Many criminals try to get the information off of your credit cards so that they can spend your money. They can use your number and the expiration date to use your card online or over the phone. They can also try to make fake cards with a magnetic strip just like yours.

If the card doesn’t work, it will when they use it manually. All you have to do is convince someone that it got damaged and they will type it in instead of swiping it and it will go through! However, more and more people are also using machines to make fake cards with a magnetic strip so they work in any machine!

Criminals can also get your card out of the mail, register it, and then use it before you even realize it. They can also steal your card and rack up purchases before you even know that it is gone.

If you have been accused of credit card fraud or any other financial crime, please contact us first.