What Is Common Credit Card Fraud?

Identity theft is a common form of credit card fraud.

Credit card fraud is becoming quote commonplace, but it isn't getting any easier for consumers to prevent it. Identity theft, lost or stolen credit cards, Internet fraud, counterfeit credit cards, and or non-receipt of goods, are all common forms of credit card fraud. Shopping on the Internet, although convenient, can leave consumers increasingly vulnerable to credit card fraud. Sometimes just throwing out your trash without sorting out old mail or other paper containing personal information can be a threat to your credit card safety.

Identity Theft

Identity theft has much to do with the way consumers shop. Many people shop online, entering credit card information on unsecured sites. This allows thieves to capture vital information about their identities. Last year, 11.1 million people were victims of identity theft, an increase of 11 percent over the previous year, according to CreditLoan.com.

Counterfeit Credit Cards

Creating fake credit cards is easy for techno-savvy thieves. To make fake cards, criminals use the newest technology to lift off information found on magnetic stripes of cards. They also can recreate the holograms security feature with the use of computer technology. Infopackets.com reports that this type of credit card fraud is very common, and makes up for 37% of all funds lost through credit card fraud.

Lost or Stolen Cards

This type of fraud accounts for 23% of all credit card frauds. Credits cards are stolen from the workplace, gym, and unattended vehicles with the card owners not even noticing the cards are missing. The fraud associated with lost or stolen cards is more than $50 billion annually.

Phishing

Phishing has become very common with the increase in online shopping. Consumers often enter card numbers and other important information into unsecured websites. Online thieves clone these unsecured sites and gain access to the credit card numbers and other personal data.

Non-Receipt of Deliverables

Ordering a product over the phone or television through 800 numbers with the use of a credit card is a very common way to shop. A common credit card fraud occurs when you do not get what you ordered. These shady businesses typically do not have physical addresses, only post office boxes. The people associated with these businesses often have inactive email accounts so you can't contact them after they have your credit card information.

References

• Spam Laws: Credit Card Fraud Statistics and Facts
• Federal Bureau of Investigation: Avoiding Credit Card Fraud
• Infopackets: Credit Card Fraud: Most Common Form of ID Theft
• Credit Loan: Arrests for identity theft double in 2009 as victims deal with crime in less time