A credit card scam can come in many forms. For example, scammer may use spyware or some other scam to obtain your credit card details. A scammer might steal or trick you into telling them your security code (the three or four digit code on your card) and then make purchases over the internet or the telephone. If they know your PIN, they could get cash advances from an ATM using a ‘cloned’ credit card (where your details have been copied onto the magnetic strip of another card).

Of course, there is also a danger of someone using your credit card if it has been physically lost or stolen.

Caution signs

There are transactions listed in your credit card statement that you don’t understand.

You have given your credit card details to someone you now suspect may not be trustworthy (perhaps over the internet).

You have lost your card.

You have kept your security information (eg your PIN or the access code on your card) written down somewhere near your card and you find that it is missing

Charged Back

To prevent being "charged back" for fraud transactions merchants can sign up for services offered by Visa and MasterCard called Verified by Visa and MasterCard SecureCode, under the umbrella term 3-D Secure. This requires consumers to add additional information to confirm a transaction.

Merchants have started to request changes in state and federal laws to protect themselves and their consumers from scam, but the c redit card industry has opposed many of the requests.[citation needed] In many cases, merchants have little ability to fight fraud, and must simply accept a proportion of fraud as a cost of doing business.

• Never send your personal, credit card or online account details through an email.
• Try to avoid using public computers (at libraries or internet cafes) to do your internet banking.
• Choose passwords that would be difficult for anyone else to guess.
• NEVER send money, or give credit card or online account details to anyone you do not know and trust.

Buy with careful

Check over your credit card and bank account statements as soon as you get them so that if anybody is using your account without your permission you can tell your bank.

If you are buying something over the telephone or internet and want to use your credit card, make sure you know and trust the other party. If you want to provide your credit card details to a telemarketer, take their name and call them back on a phone number you find independently (i.e., not a number they give to you).

Famous credit fraud attacks

In August 2009 Gonzalez was also indicted for the biggest known credit card theft to date — information from more than 130 million credit and debit cards was stolen at Heartland Payment Systems , retailers 7-Eleven and Hannaford Brothers, and two unidentified companies.

Between July 2005 and mid-January 2007, a breach of systems at TJX Companies exposed data from more than 45.6 million credit cards. Albert Gonzalez is accused of being the ringleader of the group responsible for the thefts.

Conclusion

Whenever you want to give out your credit card details, ask yourself if it is safe to do so. If you are very careful with your credit card and PIN, you can greatly reduce the chances of your credit card details ending up with a scammer.