Credit card fraud is the unauthorized use of someone else's card information to make purchases or access funds - and as more transactions move online, the risk keeps climbing.
How fraud happens
Fraudsters mix digital schemes with old-fashioned theft: data breaches that steal cardholder details, phishing emails posing as trusted brands, skimming devices hidden on ATMs and gas pumps, and social engineering calls that pressure victims into handing over card numbers. Once they have the details they buy, transfer or resell the data on the dark web.
Common types
- Card-not-present fraud, common in online purchases
- Lost or stolen card fraud
- Skimming and cloning from a card's magnetic stripe
- Phishing and social engineering
- Account takeover, where a hacker locks out the real owner
Protecting yourself
Watch for warning signs - unrecognized charges, unusual bank alerts, sudden account changes or missing statements. Shop only on HTTPS sites, turn on transaction alerts, review statements often, never share card details on unsolicited calls or emails, use virtual card numbers and shred old paperwork. If fraud hits, act fast: report it to your issuer, file a police report, alert the FTC at IdentityTheft.gov, monitor your reports from Equifax, Experian and TransUnion, and change your passwords with two-factor authentication.
The hidden cost to merchants
Even careful businesses lose money to hidden processing fees. Cashswipe offers a program that eliminates 80-100% of merchant fees legally, with no contracts - and the people who place it for business owners earn passive income on the processing volume.