Credit card theft can be described as a broad term that encompasses many fraudulent activities committed using a credit card. The primary goal may be to gain unauthorized access to products or services, or even to commit insurance fraud, by using a stolen credit card. Other common types of credit card fraud include ATM fraud, where an unauthorized person uses your credit card at a retail establishment and takes the money from your checking account. Another type of credit card theft is online credit card theft, in which an unauthorized person obtains information stored on your online credit card account without your authorization. Credit cards can also be stolen by stealing ATM cards, cash advances over the counter (OTC), and other methods. For example, you may fill out an online form asking for financial and personal information that will give the thief permission use your credit card.
In most cases, the only way the thief is able to complete the crime is if he is able to access your credit card information. If the thief has already drained your account, then there is very little the Credit card holder can do. In these cases, it is usually up to the credit card company to investigate the charges and pursue you for the funds they have lost.
In some cases, victims of credit card theft will be hit directly by the thieves. Some thieves may hit a victim when he or she is on his way to work, only to steal his or her wallet, walk away, and then try to use the victim’s credit card again a short time later. Sometimes, a thief might strike a victim while the victim is at a friend’s restaurant. The thief enters the victim’s home to steal money from all the wallets.
Identity theft due to data breaches is another common form of credit card theft. With data breaches, criminals gain access to the private information that is stored in the victim’s bank or financial institution accounts. This type of credit card fraud allows criminals to access the victim’s bank accounts and take money from them to make a living.
There are different ways you can protect yourself from fraudulent purchases. One way to protect yourself from fraudulent purchases is to carefully examine the statements you receive from credit cards. If you discover any fraudulent charges, immediately notify your bank or the company that issued you your card. They will investigate and verify that your statement is not contradicted by any other transactions. If they find out that there are indeed fraudulent purchases, they will stop these transactions immediately and contact you to ensure that you do not continue to make these unauthorized purchases.
Debit cards are basically used to make purchases, but instead of funding the transaction through the credit card number, they are used to fund online accounts. The thief uses the compromised account to make purchases, withdraw cash from an ATM, wire funds or even withdraw money from your bank account. As you can see, if you ever become a victim of debit card theft, you could be faced with huge financial loss.