Protecting yourself from credit card fraud
Credit cards can be handy for managing our finances, but in the wrong hands there can be dire consequences. Find out how to keep your plastic safe and secure
Key takeaways
Always stay vigilant to the growing threat of credit card fraud
Use the 3 or 4 digit code on the back of your card for added security as this validates physical card possession and online purchases
Regularly review statements and credit files to check for anything suspicious
Report lost or stolen cards immediately to the issuer to prevent further transactions
If you're a victim of fraud, contact your card provider immediately
What types of credit card fraud should I look out for?
Fraudsters are forever coming up with new and ingenious ways of trying to part you and your money, so always be wary when making any kind of financial transaction.
The most common forms of credit card fraud include:
What type of credit card fraud should I look out for? accordion
Phishing
Phishing is a deceitful practice where faudsters impersonate banks or financial institutions to fish for your account number and PIN. They may use email, phone calls, or even mail to trick you into providing sensitive information.
Remember, legitimate organisations will never ask for this information in such a manner. To stay safe, avoid using easily guessable PINs like family birthdays, which can make you an easy target.
Skimming
Skimming occurs when scammers use electronic devices to clone your credit card details during what seems like a normal transaction.
This can happen anywhere, but shops, restaurants, and bars are common hunting grounds. Fortunately, banks are on the lookout for unusual transactions and will take action to cancel cards if fraud is suspected.
ID Fraud
ID fraud involves the use of your personal details to open new credit card accounts or take out loans in your name. Often, victims only discover the fraud when contacted by lenders for debts they know nothing about.
To prevent this, proper disposal of documents with personal information is crucial. Shred or destroy them before throwing them away.
How can I prevent falling victim to credit card fraud?
There are several preventative measures you can take to reduce the chances of falling victim to a scam. These include:
Guard your details: Never give out or write down your bank details or PIN. And If someone asks for your PIN, whether over the phone, via email, or in person, it's a red flag
Exercise caution with your emails: Be wary of emails requesting personal information. Avoid clicking on links within these emails, as they may lead to fraudulent websites
Public Wi-Fi: These networks may not be secure. Financial transactions or online banking on public networks can expose you to risks
Dispose of documents securely: Shred or destroy documents containing personal information to prevent them from falling into the wrong hands
Make sure PIN is hard to crack: Choose a non-obvious PIN. It's a simple yet effective way to thwart fraudsters
Store passwords in a safe place: Avoid storing credit card details on laptops or PCs, as this can increase the risk of fraud if your device is compromised
What should I do if my credit card is lost or stolen?
If your card is lost or stolen, report it immediately to the issuer. Quick action can stop further transactions and freeze the account, preventing fraudulent use.
If you’re sure you’ve misplaced your card at home, for example, you can usually freeze the account until you find it. However, you should cancel the card immediately if there’s a chance it may have been stolen.
What should I do if I’m a victim of credit card fraud?
If you fall victim to credit card fraud, or you are suspicious of an email or phone call, contact your card provider immediately. You should also report it to Action Fraud, the national reporting centre for fraud and cybercrime.
Taking these steps can help minimise the damage and start the process of resolving the issue.
Will I get my money back if I’m a victim of credit card fraud?
Credit card fraud is when someone spends money on your card without your consent. This includes stealing your details to open accounts or clone your cards.
If you haven’t shared your account details, it’s likely that you’ll be refunded. Section 75 gives you additional protection here. The bank will cancel your card, issue a new one, and secure your online or mobile banking if necessary.
A scam is trickier because it’s when criminals trick you into making a payment yourself, buying from a fake website for example. But depending on the situation, you may still get your money back.
If you’re not happy with how the bank deals with your request for a refund, you can complain to them. Retain all the information about your case and check their website to find out the complaints procedure.
If the bank says it won’t refund the money, or you don’t receive a response within eight weeks, you can contact the Financial Ombudsman. If the ombudsman decides you've been treated unfairly, it's got legal powers to put things right.
Should I worry about credit card fraud?
Credit card fraud is a serious issue and shouldn’t be taken lightly. In the first half of 2024, over £570 million was stolen in payment fraud, according to figures from UK Finance
While scam attacks are on the rise, the good news is that banks and financial institutions are putting in additional security measures to help stop us becoming victims.
For example, the familiar 3 or 4 digit code on the back of your card, known as the CVV or CVC, provides an extra layer of security. It's essential for confirming physical card possession and validating online purchases.
Increasingly, multi-factor authentication is also in use to help confirm that the individual attempting to make the transaction is the cardholder.
An example of two-factor authentication would be needing to use a one-time code sent to your phone to confirm an online payment.
How can I find out whether I’ve become a victim of credit card fraud?
As well as being good financial practice, regularly checking your card statements and credit files for unauthorised use is a smart way to check for credit card fraud.
You can view your credit report from any of the main credit reference agencies, Experian, Equifax and TransUnion, including using MoneySuperMarket’s free credit score service (which uses TransUnion).
It will show you if anyone has opened any credit card accounts in your name, or has made other credit applications, for example, for a personal loan.
Money & Savings Expert
Our expert says
“Credit card users have long enjoyed better protection if they are defrauded than cash or some debit card users thanks to the fantastic Section 75 of the Consumer Credit Act.
"But it’s not always easy to get your money back and there are plenty of small measures we can all take to stay out of the fraudsters’ way, including refusing to store our credit card details on laptops or PCs.”
Other useful guides
We have a host of further information to help you learn more about credit cards.
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Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
Reviewer
Jonathan Leggett
Former Senior Content Editor
With over 15 years of experience in online content and journalism, Jonathan is a former MoneySuperMarket’s editor at large and works across our Broadband, Mobiles, Energy and Money channels. Along...