Common Credit Card Scams and How To Protect Yourself

If you were targeted by a credit card scam over the last few years, you’re not alone. According to Security.org, an estimated 61.3 million Americans faced credit or debit card fraud last year. The fraud cost $6.1 billion worth of unauthorized charges.

Many of these fraudulent charges could be attributed to credit card scams like skimming or phishing, online shopping scams and public Wi-Fi scams. Learn the 10 common credit card scams and the steps you need to take if you get scammed.

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Key Takeaways

• Fraud is widespread and mostly remote. An estimated 61.3 million Americans faced fraudulent card charges last year, totaling roughly $6.1 billion — and only about 5% involved a physically stolen card.

• Phishing and skimming top the list. Scammers impersonate your bank by text or email to steal login details, while hidden skimming devices — which cost consumers over $1 billion a year, per the FBI — capture your card data at ATMs and pumps.

• Your credit card liability is capped at $50. Under the Fair Credit Billing Act, you're liable for no more than $50 in unauthorized charges, and most issuers offer $0 liability in practice.

Summary generated by AI, verified by MoneyLion editors

Here’s a guide to the most common credit card scams and tips on what to do to prevent this from occurring.

1. Phishing

Over 191,000 Americans reported phishing scams to the FBI last year. Phishing is when a scammer targets you via text, email or links by posing as a representative of your bank or other company so that you’ll reveal sensitive information about your credit card information.

How to prevent phishing

• Don’t click on suspicious links especially if you can’t verify the source.

• Even if you have the urge to respond or “act now,” don’t respond.

• Look for misspelled words and formatting errors — generally reputable companies don’t have these kinds of errors in communication.

• Don’t open attachments.

2. Skimming

According to the FBI, skimming costs financial institutions and consumers $1 billion each year. Skimming involves a hidden device that’s attached to an ATM, gas pump or other terminal that captures your magnetic stripe data and PIN as you’re using it.

How to prevent skimming

• Use ATMs inside a bank instead of those machines located outside.

• Look at the card reader before you insert your card.

• Try to use your chip or contactless payment when you can. Magnetic stripes make it easy for scammers to steal your information.

3. Shimming

Shimming is more advanced than skimming. Shimming involves targeting the chip rather than the magnetic stripe. To shim, a slim (almost paper thin) chip device is inserted into the card slot. It’s generally undetected by you and reads your data every time it reads your card.

How to prevent shimming

• You should check the card slot, and if your card is meant with a little resistance, it may be a cue to use another ATM.

• Tap to pay instead of using your card with a chip.

• Make sure you turn on your transaction alerts to immediately know if your card has been compromised.

4. Public Wi-Fi Scams

Sometimes you’re tempted to use your phone or laptop to review a financial transaction or transfer funds at an airport, coffee shop or other public places. If you use the public wi-fi, these networks are unsecured, and your information becomes fair game for scammers.

How to prevent public Wi-Fi scams

• Don’t use unsecured networks for sensitive transactions.

• If you absolutely need to use your phone for a transaction, use your hotspot or cellular data network.

• Use a VPN, which makes your data unreadable.

5. Online Scams

Online scams tend to victimize individuals via the internet. These scams aren’t necessarily focused on hacking, but tricking you into revealing card and personal information because you think it’s someone you trust. One example is the warning that your computer is infected and you need to click on the link to get a remote repair.

How to prevent online scams

• Don’t respond to offers that seem unbelievable or too-good-to-be-true.

• Don’t click suspicious links.

• Slow down to verify the source of the information request.

6. Account Takeover Scams

A scammer takes over your account through personal login and password information and makes unauthorized transactions on your behalf. These could range from requesting new cards, making purchases and draining funds. These scammers may change your passwords to lock you out of your account.

How to prevent account takeover scams

• Use strong passwords that have a mixture of letters, numbers and special characters.

• Always set your account up to have 2FA protection. This is a second layer of security that prevents just a stolen password from accessing your account.

• Monitor data breaches. If a company has a data breach, then your information has been potentially exposed.

7. Donation Scams

Scammers reach out to you representing a nonprofit or charity to solicit donations. These scammers try to trick you into donating to a “charity,” but that money is going directly to the fraudster.

How to prevent donation scams

• Research the charity before donating money.

• Do not immediately give to the charity.

• Requests for wire transfers and gift cards should raise red flags.

• Don’t be afraid to ask questions about charity.

8. Refund Scams

A scammer contacts you suggesting that you’re owed money and tries to get your bank details so they can “refund” the amount. The other method of scamming is convincing you that you need to pay the “company” back for the overpayment.

How to prevent refund scams

• Err on the side of suspicion when it comes to refunds.

• Don’t share bank or credit card details to get your refund. Usually a legitimate lender has access to this information and will automatically return the funds to the original form of payment.

• You can verify you’re entitled to the refund directly with the company.

9. Quishing Scams

A quishing scam involves a scammer getting you to scan their QR code. You’re tricked into visiting a fraudulent website and entering sensitive details. Since QR codes are so common, many don’t suspect that it’s untrustworthy.

How to prevent quishing scams

• Don’t scan QR codes that appear in unexpected places.

• Check the URL first.

• Do not enter your credentials on a page that you accessed through a QR code.

10. Fake Fraud Alerts

A scammer will send you a text alert suggesting that there has been fraud on your account. They will request that you call them and then scam you into revealing details about your account information.

How to prevent fake fraud alerts

• Don’t respond to the fraud alert. Contact the credit card issuer or bank directly.

• Check for fraud alerts on your bank’s or credit card’s website.

• Don’t give in to requests to verify your identity.

What To Do If You Get Scammed

So, you’ve been bit with a credit card scam. Here’s a step-by-step guide on next steps:

1. Contact your credit card issuer as soon as possible. You can usually find the contact information on the back of the card or on the website. Ask the issuer to cancel the card, and request a replacement. The sooner you act to report the unauthorized charges, the more likely you’ll be protected.

2. Dispute the charges. Provide the credit card issuer a detailed listing of the unauthorized charges including date, amount and vendor. You may be required to fill out a form online regarding the unauthorized charges.

3. Change your passwords. You want to make sure you’ve changed online logins and passwords. Enable any additional security measures like multi-factor authentication. Pick security questions and answers that are unique to you and only you can answer.

4. Consider placing a fraud alert or credit freeze on your account. Contact the three credit bureaus, Equifax, Experian and TransUnion, and place a fraud alert or credit freeze on your account. Creditors will be unable to open new accounts with a credit freeze.

5. Monitor your credit reports. If you’re a victim of fraud, it’s a good idea to monitor your credit reports to see if new accounts pop up in your name.

6. Always keep an eye on your accounts. Check your credit card for additional unauthorized charges and report them immediately. Document any charges that don’t align with purchases you made.

Protecting Your Credit Card Info

You want to take preventive measures to make sure you’re staying ahead of the scammers. Protecting your credit card information now can save headaches later. Here are some recommendations:

• Do not share your full credit card number, PIN or CVV code with anyone. Generally most creditors or reputable institutions will not ask you to share your full number. Anytime someone asks for specific numbers, it may be a red flag and you should guard that information.

• Any requests to “act now” or “act urgently” is a sign to remain cautious. Scammers prey on scaring borrowers to act now or else. This type of request is a clear sign to guard your information and not relay sensitive information.

• Do not click on links in your email or texts. Unless you can verify that these links are legitimately coming from the credit card issuer, do not click on them. Scammers like to pose as legitimate sources to get sensitive information.

• Refrain from using unsecured networks. Public Wi-Fi is tempting to use, but it’s an unsecured network. Any financial transaction should be conducted on a secure network so hacking can be prevented.

• Always review your credit reports and credit card statements. Monitoring your accounts closely will help you spot instances of fraud.

FAQs

Will credit card scams hurt my credit?

Unauthorized charges shouldn’t hurt your credit. However, if someone engages in identity theft and you’re unaware of the charges and don’t pay, it could hurt your credit since you're likely missing payments. Always monitor your credit reports.

Should I use my credit card online?

It’s generally safe to use your credit card online. Try to use a secured network (no public Wi-Fi), a virtual secured card or a digital wallet. How can you tell if a message from a credit card issuer is fake? If you receive a message that asks you to click on a link, pushes you to “act now,” or requests sensitive information, you likely shouldn’t respond.

Will I be liable for fraudulent charges on my credit card?

Under the Fair Credit Billing Act, you’re likely not liable for fraudulent charges on your credit card. Under this act, your maximum liability is up to $50 if you report the theft of your physical card within two business days.

Do you get greater fraud protection with a credit or debit card?

Generally a credit card gives you the most protection since many credit card issuers offer a $0 liability and your money is technically not on the line. With a debit card, the fraudster is typically pulling money out of your bank account, and if you don’t report the fraud right away (up to 60 days), you could be liable for the full amount.

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