Types of Credit Card Fraud

Stolen Card

This type of fraud can involve either a credit card that has been stolen from someone, such as from their handbag or home, or alternatively, stolen from someone’s mailbox or intercepted before they receive it. The card can then be used to make online or phone purchases, or in-store purchases and ATM withdrawals if the PIN has also been stolen.

Card Cloning

Stolen credit card information is used to create a clone of the stolen credit card, so it can be used as any original credit card would be used. This was much more common when credit cards only used magnetic strips, but Chip and PIN technology has helped to reduce this type of fraud.

Card-not-present

Fraudsters use stolen credit card information to make purchases where the card does not need to be seen, such as phone and online purchases. These transactions usually only require the card number, name, expiry date and security code, which can all be easily copied from the card and used to commit fraud later on.

Identity Theft

This is something that the public has become increasingly aware of since the move into the online space. This type of fraud can take place when the fraudster uses the personal details of another person to apply for credit cards, which can then be used to rack up any amount of debts without the victim even knowing it.