- Credit card fraud is the use of a credit card to purchase items for which one has no intention of paying. It can also be when a person uses the identity of someone else to purchase the goods, with the intention of holding the victim responsible for the payback.
- The two main types of credit card fraud are application fraud and account takeover. Either the criminal applies for a card without the victim's permission or he simply uses the victim's credit card number.
- As a result of millions of dollars in losses each year, credit card companies pass on the expenses to their other customers through the use of higher interest rates and fees.
- Skimming is a new form of credit card fraud whereby the criminal gets the card number, most likely through the use of a magnetic reader, and uses it to charge additional fees to the cardholder.
- Track all of your charges and immediately report any activity that is not yours. Keep a copy of the phone number for each of your cards so that you can report lost or stolen cards immediately.
