Does Your Credit Card Safe? Know how does a Credit Card Frauds happen?

Credit card is a small plastic card issued by Bank or credit card provider like capital one, building society etc. You know millions of online and offline store are most friendly to accept payment from Credit card. Card Holder can pay as per their draw limit. Bank or other credit card provider pays the amount instantly to the good or service provider. Incredible technology that makes our life- to carry thousands of money by cash.

We all know every good thing come with some bad thing, Let me explain – My father has credit card since 2007, I use it pay money online for my website. Recently he has lost 40,000 INR and be a victim of Credit card frauds. So I decided pen down about how to be secure from any type of credit card frauds. In this Article I have focus to know all possible tricks to compromise your credit card. If you understand the way to crack your card, it would be too difficult fraud with you.

How does a Credit Card Frauds happen?

Criminal always try to beat you by hacked your account data and use to make transaction. They invent many of way to Credit Card Frauds. If you are a well know of those hacking trick. You will surely protect yourself from a credit card fraud.

By using a Stolen cards:

if you lost your credit card then it’s may be used for illegal purpose. Most of the bank has 24X7 help line to a block Stolen card. But still there is possibility to fraud. If any transactions happen before you’re reporting to your bank they the card has been compromised. Some of offline transaction required signature as in your Credit card but it can be replaced with a duplicate signature. Also some of bank has photo ID into credit card and Merchant payment receiver asked to verify photo identification. But most of the Credit card frauds happen in Online. 99.9% of online payment getaway does not required any photo identification, signature or any biomechanical verification to prevent illegal use of someone else credit card.

Read: An Ultimate list with all Indian bank name and Phone number to block Stolen Credit card.

Importance: Never lost your credit card, if you lost then report it immediately to your credit card provider.


By compromise your account:

Do you know your credit card is not only a plastic card but also content bellow data-

  1. Name of card holder:
  2. Card number:
  3. Expiration date:
  4. Verification/CVV code:
  5. a magnetic stripe:

Anyone can manage to compromise your Credit card after getting those data. Your credit card may be into your pocket but still it can be cracked using your ignorance.

Importance: Don’t adverting your credit card data. Always use card holder and try to hide to be taken a digital photo of credit card.

Card Not Present Transaction (CNP):

Internet is the major routes of credit card frauds. Any merchants who sell online product having shipping service may receive a couple of transaction with CNP. In that case the merchant need to inform by email or telephone and it has too risk identifying the real card holder.

Identity theft:

There is two type of Identity theft:

  1. Application fraud
  2. Account takeover

Application fraud:

It’s happen by stolen victim’s document like utility bills, Photo ID card, Address proof, Criminals can open new credit account and draw all amount at a time.

Account takeover:

Account takeover happen by collecting victim’s document and personal information that used as account security. Now Criminals dress up as genuine card holder impression and request bank to change address into a new location. After Getting success criminals change the PIN from new location and freely draw thousands of dollars before real account holder realized it.

Using a Skimming device:

criminals can store your card data using Skimming device. In Europe country many people report of illegal transaction by Skimming device. Criminals can store thousands of card data by making a photocopy receipt or scanning keypad for 4 digits PIN.


A thief would try to get your credit card information through various ways.

  1. They would hack your credit card information by the following action:
  2. Taking a photo copy of your receipts or bills.
  3. They could use an electronic device called Credit Card Skimmer to spy or swipe the credit card number of other thousands of victim like you.
  4. Using a small keypad for unobtrusively transcribing the 3 to 4 digit card security code that present on the magnetic strip of your credit card.

Using Carding Method:

Carding is a way to test a credit card validation. Criminal use to make small donation or websites subscription to check the stolen card to still ready to use or blocked.

In the past, carders used computer programs called “generators” to create random card number to test which one card number is present as a physical card.

BIN attack:

Credit card provider use BIN range, if any credit card provider does not pay attention to use BIN range, may be criminal use one good card credit and generate more possible card number by generators program. Since the card validity will be same and it’s a extra beneficiary.

Tele phishing:

In most of the case India people are the victim of Tele phishing credit card fraud. Criminal collect individuals’ name and phone number. Then call target card holder so professionally to get sensitive credit card related information. Some time they offer to reduce interest rates. Criminal are now move to call from landline to cell phone. They try to act like the phone number is from popular banks.

Balance transfer checks: Sometime Criminal try to steal your balance transfer check and use to locate your address and credit card related information.

Fraudulent charge-back schemes:

This is happen via spam email into your inbox, spammer offer some low cost product , service and having hidden charge-back schemes, once you pay a small amount later they charge back a large amount as per hidden Term of service. The email identification will be hidden and its look so professional.

Unexpected repeat billing:

sometime card holder purchases something and expect the card will be charge for one time. But vendor may charge multiple times with an interval of weekly, monthly or yearly. Unexpected repeat billing is in a gray area of the law, depending on whether the customer legitimately agreed to the charges.

Fraudulent website:

Some of E commerce or any other service provider designee fake website that look same as original, its online trap to extract your card information and later they use it to deduct money from your card.

Recommended read: Credit Card Vs Virtual Credit Card which has more Safety for Online Transition?

Importance: Always make sure to pay in secure environment of hypertext transfer protocol.

Next to Read: 17 Smart Tips Avoid Credit Card Fraud in India.

Let me know your experience with credit card! Do you have any more tips that are helpful on how to Avoid Credit Card Fraud. Comment bellow!

Information Resources: Thanks to wikipedia , FBI Tips on Credit Card Fraud ,

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