In 2022 alone, the Federal Trade Commission (FTC) received more than 440,000 reports of credit card fraud related to identity theft in the U.S.1 Credit card fraud is the most common type of identity theft that Americans fall victim to, and the number of reported cases just keep going up.
That's why it's important that you know how to protect yourself against credit card fraud, how to spot the signs that you've become a victim of it, and how to report and recover from an event if it happens. Here's what you need to know.
Types Of Credit Card Fraud
Credit card fraud comes in all shapes and sizes. It can happen online,over the phone, by text and in person. You can be duped by fakeemails, have your information stolen in a data breach, or have yourcards stolen out of your mailbox. And these are just a few of thepossibilities.
To protect yourself from becoming a victim, you need to know aboutdifferent kinds of credit card fraud. While solid prevention won't makeyou immune to it, being cautious can reduce your chances.
Here are some of the most common types of credit card fraud:
Card-not-present (CNP) fraud
Scammers steal a cardholder's credit card and personal information —and then use it to make purchases online or by phone. CNP fraud isdifficult to prevent because there is no physical card to examine and themerchant can't verify the buyer's identity.
Credit card application fraud
Criminals use stolen personal information (name, address, birthday, andsocial security number) to apply for credit cards. This type of fraud cango undetected until the victim applies for credit themselves or checkstheir credit report. While the victim will typically not be responsible forany purchases made with fraudulent credit card accounts due toprotection offered by the cards, this type of fraud can damage thevictim's credit score.
Account takeover
After stealing personal information, scammers contact credit cardcompanies pretending to be the cardholder. They then change passwords and PIN numbers so they can take over the account. Thistype of credit card fraud will likely be detected when the cardholder triesto use their card or log in to their account online.
Credit card skimming
The practice of credit card skimming is still happening, despite theprevalence of cards. Skimmers are devices that steal credit cardinformation from the magnetic strip on the back of the card. Scammersattach them to credit card reader machines in ATMs, retail stores, gasstations and other businesses. Then they either sell the information toother scammers or use it themselves to make charges on your card.
Lost or stolen cards
One of the most basic credit card fraud schemes is to simply stealsomeone's credit card or use a card someone has lost. Thieves alsointercept credit cards sent to cardholders in the mail.
Protecting Yourself From Credit Card Fraud
Although you can't completely protect yourself from credit card fraud,there are some steps you can take to minimize your risk of becoming avictim.
- Never provide personal or financial information in response to emails, texts, or phone — even if it looks like it's coming from a company you do business with. Remember, no reputable company — including Synovus — will ever request your personal information via email, text, or phone.
- To protect yourself from skimming, avoid suspicious card readers, like ones with sticky keypads or that seem to be haphazardly attached to an ATM or gas pump.
- Shield your PIN and account number from bystanders and store employees when using your card in person.
- Don't let mail sit in your mailbox for an extended period of time. It's not just credit cards themselves that thieves can steal, but also financial statements. Since these contain your name, address, and account number, it gives thieves a head start in CNP scams. If you'll be away, place a vacation hold2 with the post office. And for additional protection, consider moving to paperless statements.
- Set up account alerts to notify you of suspicious transactions — for example, charges over a certain dollar amount.
Remember, no reputable company — including Synovus — will everrequest your personal information via email, text or phone.
How To Detect Credit Card Fraud
Unauthorized or suspicious charges are often the first indication you've been a victim of credit card fraud. Review your monthly statements carefully to make sure there are no charges for things you didn't buy — or withdrawals you didn't authorize. Receiving a credit card statement for a card you didn't apply for is another way you could find out you've been victimized.
Many credit card companies are proactive about detecting fraud and often contact cardholders if they detect suspicious activity. However, it's never wise to provide information on any unsolicited phone calls. Instead, hang up and call your credit card company back and ask if there are any problems with your account.
How To Report Credit Card Fraud
If you discover fraudulent transactions — or if your card is lost or stolen — contact your credit card company immediately to report the fraud. Ask them to cancel or suspend your account. They will tell you how to destroy any existing cards and when you'll receive replacement cards.
You can also file a police report by contacting your local police or sheriff's office. In most cases, local authorities aren't equipped to handle credit card fraud cases. However, some creditors require police reports as part of their investigation into your fraud claim.
What Do You Do If You're A Credit Card Fraud Victim
After you have contacted your credit card company and filed a police report, you can further protect yourself and start the recovery process by doing the following:
- File a fraud alert with one of the three credit reporting bureaus, TransUnion,Equifax3, 4, 5 or Experian.6 You only need to file with one as they share alert information. The alert will make it harder for anyone to open new credit in your name. You can also place a freeze on your account, which prevents you — or scammers — from opening any new credit accounts in your name until you remove the freeze.
- File a complaint with the Federal Trade Commission at identitytheft.gov.6 Once you have filed a complaint, the agency will work with you to create a personal fraud recovery plan.
- Check your credit report. It's wise to check your credit report for credit inquiries or accounts you don't recognize even if you haven't been a victim. This will help you catch any fraudulent activity that may have slipped through the cracks. If you have been a victim, it's even more important to check your report regularly. In response to the dramatic rise in all types of financial fraud during the COVID-19 pandemic, all three credit reporting bureaus — Equifax, Experian and TransUnion — began offering free weekly credit reports to help consumers keep an eye on their accounts.7 Those free weekly reports are still being offered as of November 10, 2023.
Unfortunately, there's no way to completely protect yourself from creditcard fraud. But guarding your personal information and checking yourstatements are typically your best lines of defense.
In the market for a new credit card? Be sure to look for a card that offersreal-time alerts, online statements, and coverage if someonefraudulently uses your card. Don't forget to consider rewards, perks, andfees when choosing a credit card.
Learn about Synovus credit cards
Enroll in Credit and Identity Protection Services
As a Synovus Plus, Synovus Inspire, or Synovus Private Wealth customer, you can enroll in complimentary Credit and Identity Protection services. With this service, Synovus will monitor your credit reports and notify you any time any changes are made. Synovus will also scan the web to make sure your personal information hasn't been compromised by checking websites, blogs and peer-to-peer networks. Synovus also offers full-service identity restoration if you become a victim of identitytheft.
Want to know more about how you can achieve peace of mind as a Synovus customer? Learn more.
