Credit card fraud has increased in recent years.
The Federal Trade Commission’s latest database shows 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’re a victim of this scam when you notice unauthorized transactions on your credit card bill.
These transactions are typically less than $100 to avoid detection. However, sometimes it can exceed $1,000. One such incident occurred at a Martin in Martinsville, Virginia, when I was randomly charged $1,095 in Hong Kong.
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“Hello, I recently received a fraud alert from my credit card company that said there was a $1,095 charge on my credit card in Hong Kong. I use my iPad and the Safari browser to make online purchases. Please explain how it happens.By the way, my credit card company canceled my credit card and sent me a new master card by email.
I’m sorry to hear about the unauthorized charge on your credit card, Martin. It’s a good thing your credit card company is handling it and you are not responsible for the charges. For future reference, we will discuss how this happened and how to stay safe.
Woman shopping online using credit card (Kurt “Cyberguy” Knutsson)
how credit card fraud happens
Credit card fraud can occur in several ways, but often without your knowledge. One common method is when fraudsters hold card information through data breaches at online stores or banks.
Another sneaky tactic is phishing. Scammers are scammers who pretend to be legitimate businesses and hand out card information via email or fake websites.
There is also the risk of “card skimming.” In this case, the ATM or gas station device secretly captures your card details when you swipe. In some cases, scammers may also take advantage of the weak security of public Wi-Fi networks or compromised apps to access your information while shopping online.
Man making purchases on his phone using his credit card (Kurt “Cyberguy” Knutsson)
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Credit card fraud is all too common
A Security.org report reveals that 52 million Americans experienced credit card fraud in 2023. With 4 out of 5 American adults owning at least one credit card, we found that 3 in 5 cardholders are facing fraudulent charges. Even more concerning, 75% of these victims reported having their credit card information stolen multiple times.
A typical fraudulent transaction is approximately $100, adding approximately $5 billion in criminal purchases each year. Interestingly, most fraudulent transactions involve credit cards that were not physically lost or stolen, increasing the risk of online fraud and data breaches.
woman paying using her credit card (Kurt “Cyberguy” Knutsson)
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The need for identity theft protection
Data breaches are one of the main methods of credit card fraud. Hackers often gain unauthorized access to sensitive information stored by businesses and institutions. When a retailer, financial institution, or online store experiences a data breach, hackers typically go after the payment systems where customers’ credit card details are held.
If these systems are not properly secured, hackers can grab things like credit card numbers, expiration dates, and sometimes security codes. Once they have that information, they can use it themselves or sell it to others.
But it’s not just credit card information that’s at risk. Data breaches can also expose personal information such as names, email addresses, and phone numbers. Scammers use this stolen information to launch phishing attacks, pretending to be from trustworthy companies and tricking you into providing more sensitive information.
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This is why identity theft monitoring is so important. Identity theft companies can monitor your personal information, such as social security numbers, phone numbers, and email addresses, and alert you if it’s being sold on the dark web or being used to open an account. We can also help freeze your bank and credit card accounts to prevent further fraudulent use by criminals.
One of the best parts of our identity theft protection service is our identity theft insurance of up to $1 million to cover your losses and legal costs, as well as a white glove US case manager to help you recover your losses. It is to cover the fraud resolution team. Check out my tips and top picks on how to protect yourself from identity theft.
Illustration of credit card scammer (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 an unauthorized charge on your credit card, start by calling the number on the back of your credit card. From there you should get more information about what to do next.
2. Monitor your statements regularly: One of the best ways to catch credit card fraud early is to keep an eye on your statements. Check your transactions regularly to spot any unfamiliar charges. The sooner you notice something suspicious, the sooner you can report it to your credit card company and prevent further damage.
3. Check your credit report regularly: In addition to monitoring your credit card statements, check your credit report regularly to catch fraudulent accounts opened in your name.
4. Use strong and unique passwords. Always use strong, unique passwords for your online accounts, especially those containing your payment details. Avoid using easily guessable information and consider using a password manager to store and generate secure passwords. This reduces the chances of fraudsters gaining access to your account.
5. Credit Card Usage: Set transaction alerts with credit card companies. This way, you will receive notifications via email or text for each transaction made with your card. If you receive an alert for a purchase you didn’t make, you can report it and take immediate action to prevent further charges.
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6. Be careful on public Wi-Fi: Avoid purchasing or entering sensitive information when connected to a public Wi-Fi network. If you need to make purchases online while you’re 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, check out our expert reviews of the best VPNs for privately browsing the web on Windows, Mac, Android, and iOS devices
7. Don’t save credit card information in your browser or websites: Storing credit card information in your browser or website can be convenient, but it increases the risk of fraud. If your browser or website security is compromised, hackers can access your saved card details. To stay safe, please avoid storing your credit card information and enter it manually each time you make a purchase. If a site offers to save your details for future use, think twice before accepting. It’s better to take the extra step to enter your information every time and make sure your data is safe.
8. Use EMV chip technology: Always use a chip reader instead of swiping your card when making in-person purchases. Chip technology provides an additional layer of security against fraud.
9. Beware of phishing attempts and have strong antivirus software: Be wary of unsolicited emails, texts, or phone calls asking for your credit card information. Legitimate companies typically do not request sensitive information through these channels. The best way to protect yourself from malicious links that install malware is to install antivirus software on all your devices, as they can access your personal information. This protection can also alert you to phishing email and ransomware scams and keep your personal information and digital assets safe. Get our picks for the best 2025 Antivirus Protection Winners for Windows, Mac, Android, and iOS devices.
10. Keep an eye on your card: When using your card in a restaurant or store, keep it within sight. This reduces the risk of someone copying your card details.
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Cart important points
It is clear that credit card fraud is more common than ever and affects millions of Americans each year. The good news is that there are effective steps to protect yourself from becoming a victim. By remaining vigilant and adopting best practices, such as monitoring your statements and using strong passwords, you can significantly reduce your risk. Remember that awareness and proactive measures are your best defense against credit card fraud.
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