Types Of Credit Card Fraud
Credit card fraud is a phrase used for fraudulent activity committed with a plastic payment card, usually a debit card or a credit card. This is done using the funds in a bank card account to buy products or services. The purpose can be either to get money for items or goods to purchase something that does not exist, or simply to make unauthorized payment to an account that is under control of a criminal. There are three main forms of fraud that are perpetrated using credit cards.
The most common is swiping a card in an ATM machine or on an electronic transaction terminal, usually at a shopping mall or gas station. The victim’s card information, including the account number, the amount and the name of the cardholder, is stolen. This is known as ATM card fraud.
Another common type of credit card fraud involves a customer using his or her card online. Most often, a user will enter sensitive information online, including their credit card number. They will then provide the same information to their intended merchant. The user’s card information will then be stolen and the money will be transferred to an online account controlled by the criminal. This type of fraud, also called e-commerce fraud, is also referred to as cybercrime or online fraud.
Finally, there is a more sophisticated kind of fraud, called identity theft. In this case, someone uses another person’s identity, such as another driver’s license, to open a bank account, purchase items on an auction website, and conduct business on a social network. These types of activities can be carried out for months, even years, and will not necessarily involve stealing the victim’s actual credit card information. However, this kind of fraud can result in serious financial loss, as the criminal can drain a bank account. These are some examples of identity theft.
Credit card fraud has a serious negative impact on the consumer’s reputation. It can have a detrimental affect on one’s personal, professional, and business life. Fortunately, however, there are several steps that can be taken to decrease the potential for identity theft. By using secure networks when making online purchases, avoiding situations that are easy to steal, and reporting any suspicious activity to a reputable fraud prevention service, it is possible to reduce the risk of being a victim of card theft or credit card fraud.
Credit cards are a vital part of modern life, and are a very popular means of acquiring money. With the proper security measures in place, it is possible to reduce the risk of credit card theft and credit card fraud.