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Home > Banking Services > Credit Cards > What is Credit Card Fraud?
What is Credit Card Fraud?
Today, it is very common to hear that people are committing fraudulent acts with credit cards here and there. However, how much do we really know about credit card fraud? What is it? How does it work? What techniques are used by fraudsters? If you were not able to answer those questions, it is time for you to learn about this kind of fraud, especially if you are a cardholder.
Credit Card Fraud is one of the most frequent kinds of fraud worldwide. It encompasses different types of cards such as charge cards, debit cards, prepaid cards and, of course, credit cards. In almost all the cases, this fraud refers to the situation in which an individual or group of individuals make a merchant, including but not limited to service providers, sellers or businesses, believe that a specific card account will pay for the purchase when it is not true. Later on, the merchant discovers that he/she will not receive the money or that what they received as payment will be reclaimed by the financial institution that issued the card. Sometimes, they pass themselves off as real merchants.
Usually, what the fraudster does is that he/she uses the information and details of other credit cards or even creates equal cards in order for another person to be charged for the purchase. For this matter, it is easier and safer for fraudsters to do it on-line. Because of this reason, around 50 % of credit card fraud is conducted by the internet. Nevertheless, this is not the only way in which credit card fraud is held. Doctored Cards and Fake Cards are traditional techniques used by fraudsters. Among the modern techniques that they rely on, they use Skimming, which is the method that copies the data of one card to another, Site Cloning and False Merchant Sites, Triangulation and Credit Card Generators. Remember, if you believe that you have figured out any irregularity, do not hesitate to contact the corresponding institution.
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