The different types of fraud include:
- Counterfeit Credit Cards — To make fake cards, criminals use the newest technology to “skim” information contained on magnetic stripes of cards, and also to pass security features (such as holograms).
- Lost or Stolen Cards — Often cards are stolen from a workplace, gym or unattended vehicle.
- Card Not Present (CNP) Fraud — Internet fraud occurs whenever charge card information is stolen and used to make online purchases. Usually, a merchant will ask for the CVC code (located on the back of the card itself) to help prevent this type of fraud.
- Phishing — Phishing occurs whenever a cardholder receives a fake email directing him or her to enter sensitive personal information on a phony website. The false website enables the criminal to steal information from the cardholder.
- Non-Receipt Fraud — This occurs whenever new or replacement cards are mailed and then stolen while in transit.
- Identity Theft Fraud — Whenever a criminal applies for cards using another person’s identity and information, this type of fraud occurs.