When, Where and How It Is Done to You.

Credit card fraud is a big problem and nobody is completely secure in our days. Banks and credit companies are doing their best to provide on-line security but there are some simple things that the credit card users should know.

In this part we will concentrate on the classification of the credit card frauds. For tips about how to protect yourself from it see our Credit Card Fraud. Part 2. How to Protect Yourself.

First of all, you card could be simply stolen or lost and then used before you report the loss, although this kind of fraud is not the most widespread. Sometimes your new, never used card gets stolen or copied even before it reaches you, in transit from the bank to the client.

Skimming, or card cloning consists in electronically copying the information, contained on the magnetic stripe of your card into a new card. Special devices are used for this and most often it occurs in bars, restaurants and petrol stations or through ATM machines that have been fitted with a cloning device, a hidden camera or a keypad overlay.

Also beware of shoulder-surfing – when the crooks are hanging around and watching while you are entering your pin and then distract you or mug you to steal your card. Another trick involves inserting a card-trapping device inside a cash machine and then just hanging around and turning all concerned and helpful with your problem, urging you to reenter your pin while they watch. When you give up end leave to reclaim your card later from the bank, the criminal just extracts the device together with your trapped card.

Very often you card remains with you and the fraud is performed via Internet, mail or telephone by obtaining the cards details during a poorly protected transaction. Currently this is the most common type of fraud in the UK. The dumbest thing to would be to send you personal or card details via internet or to respond to a scam mail and still lots of people do it. Remember that your bank will never ask you about your details in an e-mail or by phone.

Identity theft is another type of fraud and consists in obtaining the card-holder’s personal information that can later be used either to open a credit account in your name or to take over your already existing account.

So, in order to protect yourself from some very obvious scams read our post on How to Protect Yourself from credit card fraud and follow some easy rules of credit card security.