Credit card fraud It has been on the rise in recent years.
The latest Federal Trade Commission database indicates that 416,582 cases of credit card fraud were reported in 2024, making it one of the most common forms of identity theft. You know you have been a victim of this scam when you notice unauthorized transactions on your credit card bill.
These transactions are usually less than $100 to avoid detection. However, sometimes it can exceed $1000. One such incident occurred with Martin from Martinsville, Virginia, when he was charged $1,095 randomly in Hong Kong.
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“Hi, I recently received a file Fraud alert From my credit card company who said there was a $1095 charge on my Hong Kong credit card. I use the iPad browser and Safari to purchase online. Can you explain how this could happen? By the way, my credit card company canceled my credit card and will send me a new MasterCard in the mail, and I am not responsible for the charges on my credit card. What can I do in the future to prevent this from happening again? “
I'm sorry to hear about the fraudulent charges on your credit card, Martin. It's a good thing your credit card company handles it and you're not responsible for the fees. For future reference, I will discuss how this could happen and how to stay safe.
A woman uses her credit card to shop online (Kurt “Cyberguy” Knutsson)
How does credit card fraud happen?
Credit card fraud can happen in many ways, often without you even realizing it. One common way is when scammers obtain your card information through… Data breach In online stores or banks, which means your details are leaked without your knowledge.
Another sneaky tactic Phishingwhere scammers trick you into giving up your card information by posing as legitimate companies via fake emails or websites.
There is also a riskSkimming card“, where machines at ATMs or gas stations secretly capture your card details when you swipe them. In some cases, fraudsters may also exploit weak security at Public Wi-Fi networks Or compromise apps to access your information while shopping online.
A man uses his credit card to shop on his phone (Kurt “Cyberguy” Knutsson)
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Credit card fraud is very common
A report from Security.org reveals this 52 million Americans experienced credit card fraud in 2023a higher number than the number reported by the FTC. With four in five American adults owning at least one credit card, the report found that three in five cardholders have experienced unauthorized charges — an estimated 128 million victims. More importantly, 75% of these victims reported having their credit card information stolen more than once.
An unauthorized transaction amounts to about $100, adding up to nearly $5 billion in criminal purchases each year. Interestingly, most unauthorized transactions involve credit cards that have not been physically lost or stolen, highlighting the increasing risks of online fraud and data breaches.
A woman uses her credit card to pay (Kurt “Cyberguy” Knutsson)
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The need for identity theft protection
Data breaches are one of the main ways credit card fraud occurs. Hackers often become unauthorized Access sensitive information stored by companies or organizations. When a retailer, financial institution, or online store experiences a data breach, hackers usually go after the payment systems where the customer's credit card details are kept.
If these systems are not properly secured, hackers can obtain things like credit card numbers, expiration dates, and sometimes security codes. Once they have this information, they can either use it themselves or sell it to others.
But it's not just credit card information at risk. Data breach Personal details such as names, email addresses and phone numbers can also be exposed. Fraudsters can then use this stolen information to launch disingenuous phishing attacks, posing as trusted companies and tricking you into giving up more sensitive information.
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This is why identity theft monitoring is so important. Identity theft companies can monitor personal information such as your Social Security number, phone number, and email address and alert you if it is sold on the dark web or used to open an account. They can also help you freeze bank and credit card accounts to prevent further unauthorized use by criminals.
One of the best parts of some identity theft protection services is that they have identity theft insurance of up to $1 million to cover losses and legal fees And a white glove fraud resolution team where a US based case manager helps you recover any losses. See my tips and top picks on how to protect yourself from identity theft.
Illustration of credit card fraud (Kurt “Cyberguy” Knutsson)
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10 ways to protect yourself from credit card fraud
1. Notify your credit card issuer immediately: If you notice fraudulent charges on your credit card, start by calling the number on the back of your credit card. From there, you should get more detailed information about what to do next.
2. Monitor your data regularly: One of the best ways to catch credit card fraud early is to monitor your statements. Review your transactions regularly to discover any unusual fees. The sooner you notice something suspicious, the sooner you can report it to your credit card company and prevent further damage.
3. Regularly check your credit report: In addition to monitoring your credit card statements, review your credit report periodically to catch any unauthorized accounts opened in your name.
4. Use strong and unique passwords: Always use strong, unique passwords for your online accounts, especially those that store payment details. Avoid using information that can be easily guessed, and consider using a Password manager To store and create secure passwords. This reduces the chances of access to your accounts.
5. Use credit card alerts: Set up transaction alerts with your credit card company. This way, you will receive a notification via email or text for every transaction made with your card. If you receive an alert for a purchase you didn't make, you can take immediate action to report it and prevent further charges.
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6. Be careful with public Wi-Fi: Avoid making purchases or entering sensitive information when calling Public Wi-Fi networks because they are often insecure. If you need to make an online purchase on the go, consider using a VPN (virtual private network) to encrypt your connection and keep your credit card details safe from hackers. For the best VPN software, see our expert review of the best VPNs for your web browsing on Windows, Mac, Android, and iOS devices
7. Do not store credit card information on browsers and websites: Storing your credit card information on browsers or websites can make it convenient, but it also exposes you to a higher risk of fraud. If your browser or website security is compromised, hackers can access your saved card details. To stay safe, avoid providing your credit card information and manually entering it each time you make a purchase. If a site offers to provide your details for future use, think twice before accepting. It's best to take the extra step to enter your information each time, ensuring your data stays safe.
8. Use EMV chip technology: When making personal purchases, always use a chip reader instead of swiping your card. Chip technology provides an additional layer of security against fraud.
9. Be wary of phishing attempts and have strong antivirus software: Be wary of unsolicited emails, texts, or phone calls requesting your credit card information. Legitimate companies do not typically request sensitive information through these channels. The best way to protect yourself from malicious links that install malware, which may access your private information, is to install antivirus software on all your devices. This protection can also alert you to mitigate ransomware emails and scams, keeping your personal information and digital assets safe. Get my picks for the best antivirus protection winners of 2025 for your Windows, Mac, Android, and iOS devices.
10. Keep your card in sight: When using your card at restaurants or stores, try to keep it on display. This reduces the risk of someone copying your card details.
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Kurt Kisa Kurt
It's clear that credit card fraud is more prevalent than ever, affecting millions of Americans every year. The good news is that there are effective steps to protect yourself from becoming a victim. By staying vigilant and using best practices – such as monitoring your data and using strong passwords – you can significantly reduce your risk. Remember, awareness and proactive measures are your best defense against credit card fraud.
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