CREDIT CARD FRAUD

Credit card fraud is a type of financial fraud where unauthorized or deceptive use of someone else's credit card or credit card information is carried out with the intent of making fraudulent purchases, withdrawals, or transactions. This can occur through various methods, including stealing physical cards, obtaining card details through online methods, or using counterfeit cards. The goal of credit card fraud is to obtain goods, services, or cash without the legitimate cardholder's knowledge or consent.

Types of credit card fraud include:

Card Theft:

• When an individual's physical credit card is stolen, it can be used to make unauthorized purchases before the cardholder realizes the card is missing.

Card Not Present (CNP) Fraud: 

• This occurs when someone uses stolen credit card information to make online or phone transactions where the physical card isn't required.

Counterfeit Cards: 

• Criminals create counterfeit cards using stolen card data to make unauthorized transactions in physical stores or at ATMs

Skimming: 

• Criminals use skimming devices to capture credit card information from legitimate card readers, often at ATMs or point-of-sale terminals.

Phishing:

• Fraudsters send deceptive emails or messages that appear to be from legitimate sources, aiming to trick victims into revealing their credit card information.

Data Breaches:

• Cyberattacks on businesses or financial institutions can result in large-scale theft of credit card data from their databases.

Social Engineering: 

• Criminals manipulate individuals into providing their credit card information through tactics like impersonating bank representatives or tech support.

Carding: 

• Criminals use stolen credit card details to test the cards' validity through small transactions before making larger unauthorized purchases.

Credit card fraud can have serious consequences for victims, including financial losses, damage to credit scores, and emotional stress. Credit card issuers and financial institutions implement various security measures to detect and prevent fraud, such as real-time transaction monitoring, two-factor authentication, and fraud alerts. Additionally, cardholders can protect themselves by regularly monitoring their account statements, promptly reporting any unauthorized transactions, using strong passwords, and being cautious of sharing credit card information online or over the phone.