Credit Card and Debit Card Fraud

How It Works

Credit card and debit card fraud occurs when a person uses someone else’s card or card information to make unauthorized purchases or withdrawals. This can happen through physical theft of the card or by stealing card information online or through card skimming devices.

Common Methods of Credit Card and Debit Card Fraud

• Account takeover: A fraudster takes control of a credit or debit card account to make unauthorized transactions.
• Card-not-present fraud: An unauthorized person uses stolen card details to make online purchases.
• Card skimming: Devices capture card information at ATMs or point-of-sale terminals, such as at gas pumps.
• Mail fraud: A scheme by a fraudster to intercept a credit or debit card from the mail before the intended account holder receives it.
• Phone thefts and fraud: Fraudsters target smartphones to access sensitive financial information, digital cards, banking apps, and wallets stored on the device.

Warning Signs

• Unfamiliar credit or debit card transactions appear on your bank or credit card statements.
• Small dollar authorizations or transactions are used to “test” an account prior to much larger transaction activity.
• Your bank notifies you of unauthorized account activity.
• You receive calls from your bank about transactions you didn’t make.

Ways to Avoid It

• Monitor your financial accounts regularly: Set up account alerts for all transactions and review your statements frequently for unauthorized charges or unusual and suspicious activity.
• Use secure payment methods: When shopping online, ensure the website is secure (look for “https” in the URL) and avoid saving payment information on websites.
• Be cautious with ATMs and other point-of-sale terminals: Use ATMs located at secure, well-lit locations, and cover the keypad when entering your PIN to prevent skimming devices from capturing your information. Check if any parts of a point-of-sale terminal are loose or wiggle.
• Keep your cards secure: Never share your card details with anyone, and report lost or stolen cards immediately.
• Use strong passwords: Ensure all your online accounts have long, complex passwords and enable two-factor authentication where possible. Be sure all your online accounts have different passwords.

Ways to Report It

Taking prompt and comprehensive action when faced with credit card or debit card fraud can help mitigate any potential damage and ensure that the fraudulent charges are resolved effectively.

• Contact your card issuer immediately
  • Phone: Call the customer service number found on the back of your credit or debit card or on the bank’s website. Report the fraudulent charges and request that your card be blocked or replaced.
  • Online: Many financial institutions allow you to report fraud through their online banking or mobile app platforms.
  • Consider requesting a new account.
• Place a fraud alert on your credit report
  • Contact credit reporting agencies: Place a fraud alert or credit freeze on your credit reports by contacting one of the three major credit bureaus. The bureau you contact will inform the other two.
    • Equifax: 1-800-525-6285
    • Experian: 1-888-397-3742
    • TransUnion: 1-800-680-7289
  • A fraud alert makes it harder for identity thieves to open accounts in your name.
  • Duration: A fraud alert lasts for one year, but you can extend it.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• Report the fraud to the Federal Trade Commission (FTC)
  • Online: Visit the FTC’s IdentityTheft.gov to report the theft and create a recovery plan.
  • Phone: Call the FTC at 1-877-438-4338.
• U.S. Postal Inspection Service (USPIS): For mail-related scams.
  • Online: uspis.gov
  • Phone: 1-877-876-2455
• File a report with law enforcement
  • Local law enforcement: Visit or contact your local law enforcement agency to file a report about the fraud. Provide them with all relevant information and documentation.
  • Obtain a copy of the law enforcement report to provide to your financial institutions and credit bureaus as needed.

Remember: Always remain vigilant and proactive in protecting your financial information.