A credit card scam can come in many forms. For example, scammers 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.
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).
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.
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.
If you think your credit card or bank account is being used by somebody else you must report it firstly to your bank as soon as possible. If the unauthorised use of your credit card is the result of some sort of scam, you can also report a scam through the SCAMwatch website and warn your friends and family.
Phishing emails are fake emails usually pretending to be from banks or other financial institutions. They make up some reason for you to give your account details and then use these details to steal your money.
Scammers pretend to be from your bank or financial institution and tell you that there is a problem with your account. They ask for your account details to protect your money, but then use these details to steal your money.
Spyware is a type of software that spies on what you do on your computer. Key-loggers record what keys you press on your keyboard. Scammers can use them to steal your online banking passwords or other personal information.