Discover 7 credit card scams and how to avoid them
Credit cards have become one of the most convenient ways to pay for purchases, both online and in person. However, this convenience also attracts criminals who use increasingly sophisticated methods to steal data and money from unsuspecting consumers.
Credit card scams not only cause financial losses but can also damage your credit history and create stress when resolving the issue with banks or authorities.
Understanding the main types of fraud is the first step toward protection. Below, we highlight seven common credit card scams and explain how to avoid them.
1. Phishing Emails and Messages
Phishing is one of the most common fraud techniques. Criminals send emails or text messages pretending to be from your bank or a reputable company.
They usually include links to fake websites where victims are asked to provide card details, passwords, or personal information.
How to avoid it?
- Never click on suspicious links;
- Check the sender’s email carefully;
- Access your bank’s website directly by typing the address into your browser;
- Remember: banks rarely request sensitive information by email or SMS.
2. Skimming Devices
Skimming occurs when fraudsters install hidden devices in ATMs, gas station pumps, or payment terminals to copy the data stored on a card’s magnetic strip.
With this information, they can create cloned cards and use them for unauthorized purchases.
How to avoid it?
Inspect ATMs and card machines for unusual accessories. Additionally, use ATMs located in secure, well-lit locations. Finally, cover the keypad when entering your PIN.
3. Online Shopping Fraud
Fake online stores or hacked e-commerce sites are another way criminals steal credit card data.
Victims believe they are purchasing legitimate products, but their card details are captured during the payment process.
How to avoid it?
- Shop only from trusted websites with secure connections (look for “https” in the address);
- Read reviews before buying from an unfamiliar store;
- Use virtual cards or one-time payment numbers whenever possible.
4. Card Not Present (CNP) Fraud
This type of fraud occurs when criminals use stolen card details to make online or phone purchases without needing the physical card. Because the card isn’t swiped or inserted, it can be harder to detect.
How to avoid it?
- Monitor your account regularly for unauthorized transactions;
- Enable purchase alerts by SMS or app notifications;
- Use two-factor authentication when available.
5. Lost or Stolen Cards
A physical card that is lost or stolen can quickly be used by fraudsters for purchases, especially if the card does not require PIN verification for small transactions.
How to avoid it?
One of the first things to do is block your card immediately if it’s lost. Don’t forget to have your bank’s emergency contact numbers handy. Finally, keep your card in a safe place and avoid leaving it unattended.
6. Fake Calls (Vishing)
Vishing is a type of fraud conducted by phone. Criminals pose as bank employees, informing you of a supposed problem with your account. They then request personal or card details, which are later used for fraudulent activity.
How to avoid it?
- Never share your full card number, CVV, or PIN over the phone;
- Hang up and call your bank using the official customer service number;
- Be skeptical of unsolicited calls requesting urgent action.
7. Contactless Payment Exploits
With the rise of contactless payments, criminals sometimes use scanners to attempt to read card information when in close physical proximity. Although the risk is relatively low, it is still a concern.
How to avoid it:
- Keep your card in an RFID-blocking wallet or sleeve;
- Set low transaction limits for contactless payments;
- Check your statements frequently for irregular charges.
Conclusion
Credit card scams can happen to anyone, but awareness and caution are your best defenses.
By recognizing these seven types of fraud and following practical prevention measures, you can protect your finances and avoid unnecessary headaches.
Staying informed is essential in today’s digital world. With the right precautions, you can enjoy the convenience of credit cards while keeping your money and data secure.