The 31 Forms of Identity Theft – Credit Card Fraud

#3 Credit Card Fraud

Credit card fraud is a form of identity theft that involves an unauthorized taking of another’s credit card information for the purpose of charging purchases to the account or removing funds from it.

Credit card fraud is also one of the most known forms of identity theft. Nearly one-third of all Americans have experienced credit card fraud in the last five years and many of them claim that they have fallen victim multiple times.

How does credit card fraud happen? 

  • Skimming: A few years ago, many credit card issuers added an EMV chip to help prevent credit card fraud, but it only helps limit one type of credit card fraud – skimming. Skimming is a type of fraud that you have to be concerned with when you’re out and about. Essentially, thieves will install devices on payment terminals, like ATMs and gas station pumps, that will steal all of the information on your credit card once you swipe it. The way they get away with this crime is that they make the skimming machines look identical to the original so you would never know that you willingly shared your card information. 
  • Data Breach: Many Americans know all too well the headlines that announce yet another data breach of a company’s information that they do business with. Once you give your personal information or payment information to a company, it’s up to them to keep it secure, and unfortunately, many companies fall victim to a breach of their sensitive information.
  • Online Credit Card Fraud: With an increase in purchases online, it has become normal for credit card processing to see an increase in card-not-present transactions. This normalization of card-not-present transactions is making it easier for criminals to make purchases on your dime.
  • Phishing: Phishing is when a criminal pose as a legitimate company, usually one that you’ve done business with to get you to click a link, text, or email attachment. The link will usually prompt you to input personal information, login information, or payment information and without your knowledge will also download malware onto your device which will put the information you willingly gave into the legitimate site. This can result in many types of fraud but commonly, credit card fraud.

Credit monitoring will not alert you to this type of fraud

 LibertyID will take the following steps for/with their members:

  • Place fraud alerts at all three credit reporting agencies
  • File report with FTC
  • File a fraud report with the IRS
  • File a police report
  • Review credit reports with the victim to ensure there is no other types of fraud
  • Provide credit monitoring with alerts for 12 months
  • Periodically contact the member throughout the 12 months following resolution of their ID theft recovery case if warranted