Most Common Credit Card Frauds and How to Avoid Them

As scammers continue to devise new ways of carrying out their evil acts, it is important that we know the most common credit card frauds and how to stop them in their acts.

Credit card fraudsters always devise an intelligent method to defraud their victims. No matter how secure the latest banking system may appear to be, credit card scammers will still find a vulnerable spot and use it against cardholders. Yearly, millions of Americans withdraw trillions of dollars using credit cards. This has encouraged these fraudsters to be on the lookout for victims from whom to defraud of their hard-earned money. 

Common Credit Card Frauds You Should Be Wary Of

Common credit card frauds used by these scammers include:

Skimming Fraud

Skimming is the process of stealing credit card information using a monitoring device. Credit card scammers can trap their victims using this method. This type of credit card fraud occurs at a gas station, restaurant, ATM, and other service centers used by people to make purchases or increase their credit score by using credit cards. While using any of the listed services above, you should be extra careful and always watch out for these scammers. 

How Skimming Fraud Works

Credit card owners can experience this type of scam when they use their card to pay for a particular service. An employee working in such an organization can spy on the transactions made by their customers using a skimming device. This skimming device will likely capture your card’s serial number and your password as well. The employee will later use the information gotten from the card to carry out a fraudulent act. The fraudster always ensures that the management never observes their illegal activity. If you’re paying for a service using your credit card, monitor your card very well. If your card eventually leaves your sight, the fraudster may use the opportunity to get your card’s information using a skimmer.

How to Avoid Skimming Fraud

Skimming fraudulent acts is an intelligent way to defraud credit card owners. To avoid being a victim of this type of scam, you have to observe the following safety measures;

  • Check if the card reader is compromised: Before you proceed in carrying out any transaction using a card reader, carry out a proper inspection to ensure that you’re making a safe transaction. Look around the environment to ensure that you’re making a secure transaction. Check out the usual spots for hidden cameras, compromised keypads, and other unsafe tools. If you notice any form of insecurity around the card reader, do not use it. You can always use another terminal or POS.
  • Reduce payments with credit cards: Do you prefer to pay for all goods and services using a credit card? If so, you’re exposing your credit card to danger. Develop the habit of paying with cash sometimes. Also, use the ATMs less; enter inside the banking hall to carry out safer transactions.

Stealing Card

Almost everybody puts their credit card in their wallet, purse, or pocket. This common practice has created an avenue for these scammers to get a hold of your card. This strategy is one of the most common credit card frauds used around the world. The fraudsters usually appear in a public place to watch for careless people who will fall into their traps. 

How it Works

People that associate themselves with this type of fraudulent activity are usually smart. They monitor their victims until they find a perfect moment to strike. Scammers that pickpockets always prefer to steal in a public place. These fraudsters usually appear decent to allay the suspicions of their victims. Sometimes, they operate in a group; once the first person removes your wallet from your pocket, they pass it among themselves until it gets to the keeper. After a successful operation, they will obtain your card’s secret information and use it against you.

 How to Avoid This Type of Scam

Whenever you find yourself in a crowded environment, endeavor to protect your wallet from being stolen. Your dressing style also determines your safety in a public place. Always watch out for pocket pickers by scanning your environment. If you notice any unusual movements around your pocket, don’t hesitate to reach out for your wallet. Check for your purse or wallet after bumping against someone.


Credit card scammers can go an extra mile to accomplish their fraudulent plans. They can impersonate a financial institution or a credit card issuing company while trying to acquire your credit card details.

How Impersonation Works

Before the scammers send a message to their victim either through phone calls or via email, they must have done a background check on the prospective victim. The scammer would have obtained your basic personal information by some other means and might be calling you to get more information. He may claim that your account is compromised and may require your credit card information to fix the vulnerability. Forwarding your credit card details to this scammer will enable you to fall into his or her trap.

How to Avoid Impersonation Scam

Never give out your credit card information via a phone call conversation, text, or email. Verify the number that the caller uses to establish the origin of the call before a conversation. Your credit card issuer may likely call you directly if your account is compromised, but they will use a corporate number to call. Visit the credit card company to verify any information relating to your credit card.

Creation of an Open WiFi Server

Everybody loves to connect to a free hotspot server, especially while in public places. This method may save on data, but it is not always safe to use. Scammers have used this means to obtain some credit card details of their victims.

How They Operate

Scammers usually install open-source WIFI networks in public places where many people will connect to this network to access the internet. Whenever the clients connected to the server to access their online banking system, the scammer will receive feedback about their credit card details. 

How to Avoid This Type of Scam

Whenever you find yourself in the public place, learn to avoid unsafe free network. Connecting to such networks will expose your credit card details to this type of scam. They might even devise an intelligent means of convincing their victim that the WIFI is safe to use. They may give the WIFI a name that will attract more users. But no matter the situation, never fall to their cheap scam. Using a VPN may also help in safeguarding against this type of fraud.

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