Learn How to Protect Yourself from the Biggest Credit Card Scams
The use of credit cards in the United States is one of the most common forms of consumer spending and also one of the pillars of the financial system.
In 2024, according to Federal Reserve data, more than 80% of American adults owned at least one active credit card.
To understand the scale of the problem, the Federal Trade Commission (FTC) recorded more than 440,000 complaints related to card fraud in 2023 alone, with losses exceeding $8.8 billion.
Get to know the most common scams:
1. Skimming: physical card cloning
Criminals install devices on payment terminals, such as ATMs or gas pumps, capable of copying the information stored on a card’s magnetic stripe.
Even hidden cameras and fake keypads can be used to capture PINs.
The economic impact is significant, as a single skimming operation can result in hundreds of unauthorized transactions before the bank detects the anomaly.
Stay safe by minimizing physical card use in crowded locations; opt instead for contactless transactions or mobile wallets.
2. Phishing: digital social engineering scams
Criminals use emails, text messages, or even phone calls to pose as legitimate financial institutions.
The goal is to trick victims into providing card details, passwords, or authentication codes.
Phishing has become increasingly sophisticated, with fake domains that closely mimic bank and card issuer websites.
This type of fraud threatens both consumers and e-commerce businesses, as transactions with stolen data generate chargebacks and additional costs for merchants.
Protection strategy: Never trust unknown contacts and avoid sharing sensitive information over the internet or phone.
3. Account Takeover
An account takeover occurs when criminals gain full access to a user’s account with the card issuer.
Once inside, they can change addresses, request new cards, and make purchases without raising immediate suspicion.
For banks, the cost of this type of fraud is twofold: beyond financial losses, there is also reputational damage, as consumers begin to question the institution’s security.
4. Application Fraud: opening false accounts
Application fraud occurs when criminals use stolen personal information—such as Social Security numbers (SSN), dates of birth, and addresses—to apply for credit cards in someone else’s name.
This scam is directly linked to the rise in identity theft cases in the U.S.
Best practice: regularly check your credit reports and account records to identify fraud as early as possible.
5. Card-Not-Present (CNP) Fraud: fraudulent online transactions
Criminals use stolen information to make online or phone purchases without needing the physical card.
The difficulty of validating such transactions creates high costs for merchants, who often must bear the burden of chargebacks.
While platforms must invest heavily in security, consumers themselves can also reduce risk by carefully choosing where they enter their information.
6. Business Email Compromise (BEC) and corporate fraud
Criminals manipulate communications between suppliers and finance departments to redirect payments.
Although not a traditional credit card scam, these schemes often involve corporate cards used in fraudulent transactions.
.The FBI’s Internet Crime Complaint Center (IC3) estimates that American businesses lost more than $2.7 billion to BEC schemes in 2022 alone—a clear reflection of organizational vulnerability to digital fraud.
Technologies and mitigation strategies
In response, the U.S. financial sector has been investing in technological solutions to reduce fraud incidents. Among them:
- Multi-Factor Authentication (MFA): increasingly used to authorize online transactions.
- Machine learning and AI: algorithms that analyze consumption patterns in real time to detect suspicious activity.
- Tokenization and digital wallets: replace card data with encrypted tokens, making interception harder for criminals.
- Consumer education: ongoing campaigns to raise awareness about phishing and social engineering scams.
The need for constant vigilance
Credit card scams in the United States are continuously evolving, keeping pace with both technology and consumer habits.
For every protective measure implemented, criminals develop new forms of attack.
That’s why prevention must be seen as a shared responsibility among consumers, businesses, and financial institutions.
In the end, the fight against credit card fraud is also a large-scale economic issue: protecting consumers and businesses means preserving trust in one of the most important pillars of the American financial system.