Card fraud refers to the unauthorized use of credit or debit cards to fraudulently obtain money or goods.
It can occur through various methods, including:
- Skimming: Criminals use a small device to steal credit card information during legitimate transactions. This information is then used to create counterfeit cards or conduct unauthorized transactions.
- Phishing: Fraudsters deceive cardholders into providing their card details through deceptive emails, phone calls, or websites that appear legitimate.
- Physical Theft: The simplest form of card fraud involves stealing someone’s credit or debit card and using it to make purchases or withdraw cash.
- Card-not-present Fraud: This occurs when card details are stolen and used to make online or over-the-phone transactions without needing the physical card.
- Account Takeover: After obtaining the necessary personal information, fraudsters can gain control of a cardholder’s credit card account, changing the billing address and placing charges on the account.
Card issuers and banks have implemented numerous security measures to combat card fraud, including EMV chip technology, transaction alerts, and complex online verification processes. Nevertheless, it remains a significant issue globally, prompting ongoing efforts to develop more secure payment technologies and practices.