CREDIT CARD fraud is one of the most common forms of identity theft – here are all the ways it can happen.
About 127 million Americans have been victims of credit or debit card fraud at least once, Security.org reported.
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And that figure is only expected to grow as more people rely on online shopping for their needs.
According to the Federal Trade Commission (FTC), credit card fraud has increased by 44 percent between 2019 and 2020.
Credit card details are considered precious data and if scammers don’t use it for themselves, they can sell it on the black market.
There are several ways these criminals can target your credit card information.
phishing
Phishing describes when a malicious person sends a fraudulent email or text message to trick individuals into revealing sensitive information, such as their passwords or credit card numbers.
The criminal may impersonate a legitimate entity such as a bank or company and then encourage you to click on a malicious link.
By 2021, 83 percent of US organizations said they had experienced phishing attacks.
malware
Bad actors can use malware that can record your keystrokes to get your information.
This can be done through malicious online advertisements or compromised websites.
Info-intrusive malware can also be hidden in a legitimate-looking app.
digital skimming
Skimming describes the action of stealing login credentials and payment information from website visitors.
Criminals do this by placing invisible malicious javascript code on e-commerce pages.
As you enter your card details, the threat actor scans your card details.
data leaks
Criminals can get their hands on your credit card information through data leaks and breaches.
This is a popular way for hackers to access data as it is considered more efficient and cost effective.
In 2021, there was a record number of data breaches in the US.
Public Wi-Fi
Free WiFi is a common way for bad actors to steal your credit card information.
If you use public Wi-Fi at airports, hotels, cafes or elsewhere, a hacker can spy on your data as you enter it.
How to protect yourself?
There are several ways to protect yourself from becoming a victim of credit card fraud.
First of all, be on the lookout for suspicious emails or text messages.
“Most scams are based on a sense of urgency: the idea that if you don’t do anything now to, for example, change your password or confirm your credit card number, something bad will happen,” Hari Ravichandran, founder and CEO of Aura, a company for identity theft and fraud protection.
“If you feel pressured to act in a situation, ask yourself why, then re-evaluate the legitimacy of the action you are being asked to take.”
Experts also recommend using Apple Pay or Android Pay to make payments, as both apps use technology that prevents merchants from saving your payment information.
Enabling Touch ID, Face ID, or Password protection ensures that only you can make a purchase.
You can also try a ‘masked credit card’ when purchasing items online.
Virtual credit cards are new tools that hide your real account numbers.
They give you a one-time use code and work the same way as your current credit cards.
“Consumers can use their virtual card online to prevent fraud, protect their real card from breaches and scammers, and easily set limits on their card to prevent unauthorized use,” Ravichandran said.
Masked credit cards are offered by most major credit card companies and banks, including Capital One, Citibank, and Amex.