All You Need to Know About Credit Card Fraud and How to Stay Safe

Credit card fraud has been on the rise in recent years. But how do scammers get their victims’ card details? We will answer that answer in this article. Moreover, we’ll teach you how to protect yourself from credit card fraud.

How Scammers Obtain Your Credit Card Details

A bad actor needs your credit card details to commit fraud. They use various methods to obtain that crucial information. These methods include:

Phishing

Although an old technique, phishing remains popular among scammers who wish to access their victims’ confidential data. A fraudster will reach out to you via email or phone, posing as the credit card issuer. They will then ask you to give them the details of your card. Although this scam seems like something you would notice right away, scammers employ different ways of convincing you that they are genuine credit card issuers.

Database Leaks

Fraudsters can also obtain your credit card information by accessing the database of a particular company that has your payment details. Firms like Paystation Network, Target, and Home Depot have been hacked in the past, with attackers accessing customers’ confidential information, including credit card numbers.

When scammers steal these numbers, they usually sell them in online “carding” stores. People who buy credit card numbers use them to pay for online purchases. According to ZDNet, these card numbers trade for as little as $6.

Obtaining Credit Card Details With Keyloggers

In case you install an app with a keylogger, it is easy for scammers to access your credit card details. For starters, a keylogger is malware that records what you type on your phone or computer and then sends the recording to the scammer. So when you enter your credit card number on an e-commerce website to make payments, the keylogger records the activity and informs the scammer behind it.

Forging Payments With NFC

Most credit cards are NFC-enabled, meaning it is possible for you to make contactless payments by placing your card near a payment terminal. These days, some scammers own devices that can scan credit cards. So, if you have the card in your pocket and the scammer passes close to you, the device will make a fraudulent payment.

How Do Scammers Use Stolen Credit Cards?

If a scammer manages to steal your credit card, they can use it to make contactless payments as they do not require signatures or PINs.

Moreover, the fraudster can sell the card online, as mentioned earlier. The credit card market thrives on the dark web as it is impossible for the card sellers to be identified.

How Do You Protect Yourself From Falling Victim to a Credit Card Fraud?

It is important to prioritize the safety of your credit card. We have listed various guidelines to keep your credit card safe. They include:

Avoid Sharing Details of Your Credit Card Freely

It is advisable not to share your credit card details in an email or over the phone. Note that credit card issuers and stores will not request your card information out of the blue. If this happens, then consider it a scam.

Monitor Data Breaches

Always pay attention to security-related news so that when you notice the e-commerce platform you use has been attacked, you can contact your credit card issuer immediately.

Protect the RFID of Your Credit Card

As stated, scammers now own devices that scan credit cards and make payments without your knowledge. Therefore, you can consider purchasing a smart wallet that comes with RFID-blocking to ensure the scammers do not scan your card while it is in your pocket.

Keep Track of Your Transaction Record

Monitoring your bank and credit card statements is key as it allows you to identify fraudulent transactions early and take the necessary action.

Conclusion

As you can see, scammers steal credit cards for various purposes. They can use them to make payments for their shopping or sell them on the dark web. That said, we recommend you follow the abovementioned guidelines to keep your credit card safe.