This type of credit card is more difficult for scammers to use.
Credit card fraud is a real problem, with over $32 billion lost to scammers in 2021 alone. It's important to know the signs of credit card scams so you can protect yourself from becoming a victim. As recently reported by News4JAX, Reader's Digest asked convicted identity thieves the most common ways scammers steal credit card information and their least favorite cards to steal.
Common credit card schemes
Convicted identity thieves state that the easiest way to steal people's credit card information is by taking a photo of it while it's being used at a grocery store. Another common ploy for scammers is to steal mail from people's mailbox. Thieves are able to gain access to unsuspecting consumers' credit card numbers, names, and addresses in one swoop.
Phishing is another form of credit card fraud in which criminals send emails pretending to be from a legitimate financial institution such as your bank. The email typically contains a link that leads to a fake website where the criminals can steal your personal information (such as passwords or credit card numbers).
Using skimming devices is one of the most common types of credit card fraud. These devices are installed on ATMs or other machines where credit cards are accepted and scan your card when you use it. The information is then stored on the device, which criminals later use to access your account and make unauthorized purchases. Card skimming grew by 760% in the first half of 2022, costing consumers over $1 billion a year.
Thieves' least favorite card
Once the thief has gotten their hands on the card, they try to make fraudulent purchases online or buy gift cards that are easy to resell and are difficult to trace. According to the convicted thieves, their least favorite credit card to steal is American Express. American Express transactions are safeguarded with an extra layer of security -- the user must provide a ZIP code to complete any purchase.
How to protect yourself
To protect yourself from skimmers, always check for any suspicious-looking attachments on an ATM or gas pump before using it and avoid entering your PIN when possible. If a machine looks to have been tampered with, do not use it -- report it to the store or bank immediately. To avoid falling victim to phishing, always be sure to verify any emails claiming to be from your bank or other financial institution before clicking on any links. Do not provide personal information over email unless you are certain that the email is legitimate.
Make sure your credit cards have an embedded chip. Chip cards are one of the best ways to protect your data from fraudsters because they are harder to clone than magnetic stripe cards. These cards have a microchip that stores information securely and generates a unique code for each transaction, making it difficult for hackers to access your data. If you notice fraudulent transactions on your account, notify your card issuer immediately and file a police report. Under the Fair Credit Billing Act, you aren't responsible for charges that are made after you've reported the theft, and your total liability is limited to $50 for unauthorized charges.
Credit card scams are becoming increasingly more sophisticated, but there are steps you can take to help protect yourself. Always check for skimming devices, protect your mail, and never click on links contained in emails claiming to be from legitimate financial institutions. Upgrade to a credit card with an embedded chip and continually monitor your accounts for suspicious activity. By following these steps, you can greatly reduce your chances of becoming a victim of credit card fraud!
FAQs
Thieves' least favorite card
According to the convicted thieves, their least favorite credit card to steal is American Express. American Express transactions are safeguarded with an extra layer of security -- the user must provide a ZIP code to complete any purchase.
What is the biggest credit card trap for most people? ›
The minimum payment mindset
Here's how it usually happens: You use your card for a purchase you can't really afford, or you want to defer paying for it from your savings. When your credit card bill arrives, you either choose to make just the minimum payment or it is all you can afford to pay at the time.
How can you tell a credit card scammer? ›
One of the fastest ways to spot theft is to regularly review debit and credit card statements. Pay attention to fraud alerts. If your bank or credit card alerts you of suspicious activity, look into claims by going to the website yourself or calling the official number.
What information does a scammer need to open a credit card? ›
Rather than stealing existing credit card details, a criminal may instead apply for new credit in someone else's name. They do this by using the victim's personal information, such as their full name, date of birth, address, and Social Security Number.
What credit card do rich people use the most? ›
Millionaires use credit cards like the Centurion® Card from American Express and the J.P. Morgan Reserve Credit Card. These high-end credit cards are available only to people who receive an invitation to apply, which millionaires have the best chance of getting.
What is the safest card to use? ›
Credit cards are safer than debit cards because they offer better protection if unauthorized charges are made to your card.
How many people have $50,000 in credit card debt? ›
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill? Well, that's not impossible either, though it is considerably less fun.
What percent of credit card thieves get caught? ›
Some estimates say less than 1% of credit card fraud is actually caught, while others say it could be higher but is impossible to know. The truth is that most credit card fraud does go undetected, which is a major reason why it's become a favorite among crime rings and fraudsters.
Which type of credit card carries the most risk? ›
Among the types of credit card, the one that carries the most risk are: Unsecured credit cards that have variable interest rate. Unsecured credit cards are a type of credit card that would not require applicants for collateral.
Can anyone do anything with the last four digits of your credit card? ›
You can't tell a credit card number by the last four digits. However, you could find a credit card you've saved in an account, such as on Amazon, by the last four numbers. Those are the only digits you'll be able to see when you look at the saved payment methods in your account.
Use tap to pay or contactless pay whenever you can. These methods are usually safer because the skimmer can't grab your card info like it can when you slide or dip. This uses Near Field Communication (NFC) technology, which only works over a very short distance (a few centimeters).
What information does a scammer need to access my bank account? ›
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
Can the bank find out who used my credit card? ›
Yes. Tracking who used a credit card is often possible, especially if the fraud involved physical transactions at identifiable locations or digital transactions with traceable IP addresses and device information.
How do you swipe a card scammer? ›
This is done by attaching a small electronic device to an ATM. Skimming devices can also be attached to point-of-purchase (POS) terminals like gas pumps. The device is placed on top of or inside a card swipe reader. Then, whenever you swipe your card, the magnetic strip data is captured and recorded.
Can someone open a bank account in your name without you knowing? ›
Unless you see an unusual transaction on your bank statement, you might not know someone has opened a bank account in your name. That's why it's essential to be proactive. Here's what you can do to protect yourself from scammers.
Which is the most difficult credit card to get? ›
Hardest Credit Card to Get Overall
A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.
Can I get a credit card with 666? ›
Key Things to Know About a 666 Credit Score
For example, you should be able to qualify for unsecured credit cards and personal loans, but the interest rate may be fairly high.
What is the biggest credit card theft in history? ›
NEWARK, N.J. – Federal agents in four states arrested 13 people today for allegedly creating thousands of phony identities to steal at least $200 million in one of the largest credit card fraud schemes ever charged by the Department of Justice, U.S. Attorney Paul J. Fishman announced.
What type of credit card theft is most common? ›
Card-not-present fraud is the umbrella term for all types of credit card fraud where fraudsters make a purchase without having the physical credit card in their possession. It's easily the most common type of credit card fraud, because it's a very safe line of attack for the fraudster.
