Most people prefer to use a credit card than cash for most of their purchases. Of course, there are some benefits to using plastic. You do not have to carry too much money. Credit cards have cut-offs, so the schedule of payment is manageable.
As online transactions flourish, using credit cards for online purchases puts consumers at risk. With cybercriminals using various means to steal personal and financial information, credit card frauds escalate.
Types of Credit Card Fraud
False Application Fraud
Someone applied for a credit card using another person’s identity.
Card-Never Arrived-Fraud
The credit card was intercepted in transit or stolen from your mailbox.
Lost and Stolen Card Fraud
You may be a victim of a snatcher or a pickpocket, and the criminal used your card.
Counterfeit and Skimming Fraud
Someone uses a card-skimming device attached to a merchant’s terminal or ATM to create a fake card.
Account Takeover
Scammers steal a person’s credit card information and call the credit card company to change the card’s PIN or password.
Card-Not-Present Fraud
Scammers steal a person’s credit card information and credit card and use them to make purchases via phone or online.
What Card-Not-Present Fraud Means?
Among the credit card frauds with the highest occurrence is card-not-present (CNP) fraud. For example, a consumer can shop online without presenting the actual credit card.
As a result, the merchant does not perform a visual check. Instead, all they need is the required information from the consumer, and their online payment system processes the transaction.
If your personal and credit card information is already in the hands of a criminal, they can use your information for their card-not-present fraud activities.
If you are a victim of a card-not-present fraud and want to dispute the purchases made through your lost or stolen credit card, use mychargeback review to get professional help.
The Extent of the Card-Not-Present Fraud
The popularity of e-commerce today leads to different methods to make fraudulent financial gains. Since e-commerce uses either phone or online transactions, the merchant does not need a physical card to process the payment.
To finalize a purchase, the buyer only needs to provide their personal information, credit card number, and card verification value (CVV).
According to an article published in the Merchant Fraud Journal, companies in the U.S. lose close to $10 billion annually due to card-not-present fraud.
Currently, card-not-present fraud is the leading cause of credit card fraud in the U.S.
How Do Fraudsters Obtain Credit Card Information?
Phishing, skimming, and hacking are criminals’ primary methods to obtain credit card information. Others buy the data from the Dark Web. Because e-commerce allows card-not-present transactions, credit card owners are often unaware they lost their credit card information.
They do not realize that other people are already using their personal and credit card information to purchase various items and make cash advances through their credit cards.
It is difficult to know If you lost your personal and bank information. Ensure that you shop at trusted online stores. Another thing you can do is to use your credit card’s security features.
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