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How Often Do Credit Card Frauds Get Caught? | Ways to Prevent Them Included!

The advent of technology and eCommerce platforms makes it increasingly difficult to detect fraud cases. Therefore, how often do credit card frauds get caught? It is a pity that credit card fraud remains an exorbitant problem for law enforcers to effectively manage and handle. As a result, the chances of recovering your stolen credit card information or lost funds may seem more remote, especially if you delay filing your case.

Key Takeaways

  • While credit card fraud is a setback in the financial world, you can prevent it with the right approach.
  • Scammers use various ways especially those surrounding daily activities to trick card holders.
  • Identifying fraud early is essential in keeping your funds and credit card details safe.
  • Avoid fraud by practicing crucial preventive measures when making transactions.

How Often Do Credit Card Frauds Get Caught? Credit Card Fraud Definition

Credit card fraud is an identity theft where scammers steal credit card numbers and other details to make an unauthorized purchase. This often happens through data breaches either online or from a physical store. 

Besides making fraudulent purchases, a credit card thief can also take out funds from a bank account without the owners' knowledge. Unfortunately, it is not possible to avoid credit card fraud entirely. However, by reporting credit card fraud early, you can manage to stop hackers in their tracks.

How Credit Card Fraud Works

Credit card fraud ranks high among increasing cases of identity theft globally. As more people fall victim, solving the issue becomes a dilemma as thieves use ingenious means to take billions home. 

credit card on a hook above the keyboard

Mainly, they use stolen credit card details to commit fraud. In other words, a lost credit card is one of the most common credit card frauds that credit card companies handle. Other criminals opt to intercept credit cards before reaching rightful owners in a card-never-arrive (CNP) fraud. 

In addition, scammers can access basic account details through a skimming process in card-not-present fraud. In short, they copy your credit card information with a magnetic stripe through a process known as credit card skimming and use it for unauthorized purchases.

On the other hand, criminals profit through false application fraud, account takeover and other credit card scams. No matter the size, credit accounts may encounter credit card fraud in one way or another. In conclusion, credit card fraud cases continue to escalate, amounting to $1.5 billion with or without a physical card. 

Still, a negligible number of Americans may report debit card fraud, although it is not as common as credit card scams. Below are common ways that credit card fraud happens.

Imposter Frauds

An imposter makes money by deceiving credit card holders with information that makes them appear legitimate. They can also entice a credit card holder into sharing account numbers or details through phones or emails.

Avoid falling into this ploy by disregarding or blocking spam emails from unknown sources. Above all, do not click links likely to expose your personal documents to hackers.

Identify Theft

a thief holding masks in his hands

Thieves may steal credit cards through various mediums. Then, they create new accounts to withdraw money or make online purchases. By the end of 2021, credit card issuers filed more than 1.4 million reports of identity theft in the US. 

Negative Reviews on Online Purchase

Reviews are monumental in building a brand and sending a positive word on a product. Fraudsters may take advantage of a situation and post a negative review online. When an innocent victim makes an online purchase, they may redirect them to a sham site. 

Unknowingly, victims may enter their security pin or credit card number, which the thieves may capitalize on in making illegal transactions.

a person holding tablet and credit card

Debt Collection

Scammers will not only steal your credit information. They can also fake a situation and pretend to be debt collectors. Some even give threats pushing credit card holders harder to share financial information. 

Once they receive the credit card information, they can create clone cards leading to more illegal purchases.

Credit Reports

Credit bureaus like Equifax or Transunion compile and maintain consumer credit card data. Even with stiff security measures, hackers can still access these reports and steal credit history. Mainly, they open new bank accounts and obtain loans under the victim's name.

a hand reaching for the credit report icon on a big screen

Lotteries and Sweepstakes

A call from a lottery is one of the easiest ways to hoodwink eager participants. Fraudsters may request individuals to pay a processing fee using a credit card. Immediately they access this information; they may use it to withdraw funds or make illegal credit card transactions.

Fake Job Promises

With the increased unemployment rate, this credit card theft targets newly graduated or laid down individuals. Criminals may stage a hiring scenario and request applicants to pay a processing fee to job sites using a credit card. 

This information comes in handy in creating a credit card that shares the same data as an original one.

padlock on a wallet over the white keyboard

Lenders and Banks

Unknown to many, scammers can hack your security code and eat into your money even without a physical credit card. They may pretend to be legitimate lenders eager to give quick loans or financing. In the process, they request a loan application fee using your credit details if you fall to the trick.

Online Services

There is no denying that digital inventions present a more convenient platform to sell, buy and build a brand audience. Unfortunately, the platform floods with agile scammers on a credit card theft mission. 

These fraudsters may create enticing fake offers or auction scams. If a seller asks for a deposit, prove identification first. First, request a one-on-one meeting and a presentation of crucial documents like a valid id.

How to Identify Credit Card Fraud

Even as hackers outpace credit card companies with fraud tricks, it is critical to take preventive measures to prevent financial loss. There are several ways to keep your credit and debit cards safe. A secure envelope keeps your cards safe and away from family or colleagues.

In reality, several parents have raised the alarm as underage children use their credit card details to purchase online. In 2014, the Federal Trade Commission made public a case worth $32 million between Apple and parents whose children bought game apps and other purchases.

All in all, remember that not all legal suits bear fruits. Therefore, the only way to prevent credit card fraud is to take the following preventive measures.

  • Handle identity thieves best by checking your monthly credit card statements without fail. Confirm any unauthorized transactions and immediately contact the card issuer.
  • Review invoices and bills and confirm any unfamiliar or unauthorized charges. A reliable card issuer should offer fraud protection that helps victims get their money back. Others give monitoring services like alerts that keep you on track in case of any suspicious activity.
  • Avoid making transactions in dingy locations and only use your card in reputable stores. If you can verify an online merchant with your phone, do it at your own risk.


Should I contact a credit card issuer after a fraud?

Yes, you should contact the credit card issuer after a fraud. Reach out to a credit card company immediately if you notice unusual activities in your account. Apart from canceling your card, they can also help you resolve fraudulent charges.

Do I need a police report for credit card fraud cases?

Yes. A police report is vital even if the amount is not significant. Statements made on time enable a credit card issuer and the law enforcers to protect your credit card information and cancel transactions likely to cost you more.

Can a credit card company prevent fraud?

No. A credit card company may not protect you fully against credit card fraud. However, they should reduce the risk by providing fraud protections such as transaction alerts.

Can a company take money out of your account without your permission?

No. A legitimate company should not take money from a bank account without your consent. Any fraudulent activities done without the credit account holder's authorization falls under the category of credit card fraud.

About Dusan Stanar

I'm the founder of VSS Monitoring. I have been both writing and working in technology in a number of roles for dozens of years and wanted to bring my experience online to make it publicly available. Visit https://www.vssmonitoring.com/about-us/ to read more about myself and the rest of the team.

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