What Are Common Types of Credit Card Fraud?

In 2022 alone, the Federal Trade Commission (FTC) received more than 440,000 reports of credit card fraud related to identity theft in the U.S.1 Credit card fraud is the most common type of identity theft that Americans fall victim to, and the number of reported cases just keep going up.

That's why it's important that you know how to protect yourself against credit card fraud, how to spot the signs that you've become a victim of it, and how to report and recover from an event if it happens. Here's what you need to know.

Types Of Credit Card Fraud

Credit card fraud comes in all shapes and sizes. It can happen online, over the phone, by text and in person. You can be duped by fake emails, have your information stolen in a data breach, or have your cards stolen out of your mailbox. And these are just a few of the possibilities.

To protect yourself from becoming a victim, you need to know about different kinds of credit card fraud. While solid prevention won't make you immune to it, being cautious can reduce your chances.

Here are some of the most common types of credit card fraud:

Card-not-present (CNP) fraud

Scammers steal a cardholder's credit card and personal information — and then use it to make purchases online or by phone. CNP fraud is difficult to prevent because there is no physical card to examine and the merchant can't verify the buyer's identity.

Credit card application fraud

Criminals use stolen personal information (name, address, birthday, and social security number) to apply for credit cards. This type of fraud can go undetected until the victim applies for credit themselves or checks their credit report. While the victim will typically not be responsible for any purchases made with fraudulent credit card accounts due to protection offered by the cards, this type of fraud can damage the victim's credit score.

Account takeover

After stealing personal information, scammers contact credit card companies pretending to be the cardholder. They then change passwords and PIN numbers so they can take over the account. This type of credit card fraud will likely be detected when the cardholder tries to use their card or log in to their account online.

Credit card skimming

The practice of credit card skimming is still happening, despite the prevalence of cards. Skimmers are devices that steal credit card information from the magnetic strip on the back of the card. Scammers attach them to credit card reader machines in ATMs, retail stores, gas stations and other businesses. Then they either sell the information to other scammers or use it themselves to make charges on your card.

Lost or stolen cards

One of the most basic credit card fraud schemes is to simply steal someone's credit card or use a card someone has lost. Thieves also intercept credit cards sent to cardholders in the mail.

Protecting Yourself From Credit Card Fraud

Although you can't completely protect yourself from credit card fraud, there are some steps you can take to minimize your risk of becoming a victim.

• Never provide personal or financial information in response to emails, texts, or phone — even if it looks like it's coming from a company you do business with. Remember, no reputable company — including Synovus — will ever request your personal information via email, text, or phone.
• To protect yourself from skimming, avoid suspicious card readers, like ones with sticky keypads or that seem to be haphazardly attached to an ATM or gas pump.
• Shield your PIN and account number from bystanders and store employees when using your card in person.
• Don't let mail sit in your mailbox for an extended period of time. It's not just credit cards themselves that thieves can steal, but also financial statements. Since these contain your name, address, and account number, it gives thieves a head start in CNP scams. If you'll be away, place a vacation hold2 with the post office. And for additional protection, consider moving to paperless statements.
• Set up account alerts to notify you of suspicious transactions — for example, charges over a certain dollar amount.