Credit and debit card fraud has become an unfortunately common issue in today’s digital age. According to a Federal Reserve survey, debit card fraud accounted for 39% of all fraud losses in 2024. These losses can occur from physical card theft, the misuse of card information online, or techniques such as skimming. Recognizing red flags and understanding fraud methods can go a long way in protecting yourself and your financial assets.

Common Fraud Methods
Fraudsters employ various methods to gain access to your card information, such as:

  • Account Takeover: Criminals gain control of your credit or debit card account and make unauthorized transactions.
  • Card-Not-Present Fraud: Your stolen card details are used for online purchases without needing a physical card.
  • Card Skimming: Devices installed at ATMs or gas pumps capture your card’s magnetic strip information and PIN.
  • Mail Fraud: Fraudsters intercept your credit or debit card in the mail before it reaches you.
  • Phone Theft & Fraud: Criminals target smartphones to access digital cards and wallets, banking apps, and sensitive financial information stored on your device.
Red Flags to Watch For
The following signs may indicate that your credit or debit card has been compromised:

  • Unfamiliar Charges: Unrecognized transactions on your credit or debit card statements.
  • Unauthorized Account Activity: Notifications from your bank about transactions you didn’t make.
  • Bank Calls regarding transactions you didn't make.
  • Small Test Transactions: Fraudsters often make small-dollar charges to “test” your account before initiating larger transactions.
If you notice any of these red flags, it’s crucial to act quickly to minimize potential damage.

 

How to Report Credit & Debit Card Fraud
If you suspect your card has been compromised, take prompt action.

Contact Your Card Issuer Immediately

Call the customer service number on the back of your card.

Request to block or replace the affected card.
Place a Fraud Alert on Your Credit Report

Notify one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit report.
File a Police Report

Consider contacting your local police department to file a report with all relevant information and documentation. Keep a copy of the report for your records as it may be requested by financial institutions.

 

Tips to Avoid Fraud

Being proactive about protecting your financial information can significantly decrease the risk of fraud. Here are some best practices:

Monitor Financial Accounts Regularly
Set up transaction alerts for your credit and debit cards.
Review your bank statements frequently for unauthorized charges or unusual activity

Use Secure Payment Methods
Shop online only on secure websites (look for “https” in the URL).
Avoid storing payment information on websites.

Be Cautious with ATMs & POS Terminals
Use ATMs located in secure, well-lit areas, and cover the keypad when entering your PIN to protect from skimming devices.
Inspect point-of-sale terminals for loose or tampered parts.

Keep Your Cards Secure
Do not share your card details with anyone.
Report lost or stolen cards immediately.

Use Strong Passwords & Two-Factor Authentication
Create complex passwords for all your online accounts, and ensure they’re unique.
Enable two-factor authentication for an added layer of security.

        Staying Ahead of Fraud
        Credit and debit card fraud is an evolving issue that requires vigilance and quick responses. By staying informed and following best practices to safeguard your financial information, you can reduce your risk significantly.

        Stay vigilant, monitor your accounts, and prioritize protecting your information. A little caution can go a long way in outsmarting fraudsters.

        Source: Office of the Comptroller of the Currency (OCC)