Outlook Money
Credit card frauds have become prevalent these days. These frauds can have a disastrous effect on financial well-being.
The common types of credit card scams include 'Card Not Present' Fraud (CNP) and Account Takeover Fraud. In CNP, fraudster makes transactions online or over the phone without a real card, using credit card information that has been stolen from the original cardholder.
The other types of scams include Identity Theft and Counterfeit Card Fraud where the stolen information from real credit cards is used to create fictitious credit cards.
For spotting credit card frauds, one must be cautious of unfamiliar charges on statements, notifications of large purchases, requests for sensitive information and unexpected arrival of a new card.
The strategies to safeguard oneself from credit card fraud are protecting personal documents, regular account checks and immediate reporting of loss of the credit card.