It's important to protect yourself from credit card fraud, but before you can do that, you need to know what types of credit card fraud exist, how offenders carry them out and the warning signs to look for.
Application Fraud
Application fraud occurs when someone fills out an application for a credit card by using an invalid name, address or other information to get a credit card. This can also involve using someone else's identity to apply for a credit card.
Counterfeit Card Fraud
Any credit card that is made illegally, whether it's counterfeited, fake or manipulated, constitutes counterfeit fraud. The numbers on counterfeit cards are tied to real credit card accounts and could be used to drain accounts, effectively ruining the real owners' credit.
Unauthorized Card Number Fraud
The most common form of credit card fraud occurs when a person uses an authorized number to make a purchase. In some cases, the criminal doesn't even have the actual card in their hands; instead he obtained it online or over the phone using deceptive tactics.
Intercept Fraud
Intercept fraud occurs when a credit card is stolen before it ever reaches the applicant. This might be a brand-new card or a renewal. The card might be dropped before it reaches your home or stolen from your mailbox.
ATM Fraud
Credit card fraud can also occur at ATM machines by using electronic skimming devices or looking over your shoulder to catch your PIN as you enter it. Pickpockets and thieves may also loiter around ATMs to steal your card and then use it to make easy and unauthorized transactions.
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