If you have been wrongfully accused of credit card fraud, you may not only be frustrated, but also confused. How does credit card fraud happen? To create a proper defense strategy against this kind of charge, you must first understand the crime itself and what constitutes credit card fraud.
Below are 6 different types of credit card fraud.
Stolen Credit Card or Credit Card Numbers
Credit cards can be stolen in many different ways. Physical cards can be stolen in a robbery or swiped from the mail before the card is delivered to the cardholder. Sites with malware can make credit card information accessible to those looking to engage in fraud. Certain sites also offer cheap services or even legitimate goods for purchase in exchange for a customer’s credit card information. Then, once they have that info, the site will then use the data for future credit card fraud.
After a cardholder realizes their credit card or credit card information has been stolen, he or she will be advised to cancel the card immediately. This will happen quickly if the physical card is stolen, but sometimes multiple purchases can be made with stolen credit card numbers if the cardholder has not noticed the fraudulent activity.
The development of chip and pin technology has helped to prevent fraud at physical stores in countries around the world. But as this technology becomes more common in the United States, fraudsters are finding new ways to commit fraud. One method is turning to ATMs. People can set up ATMs to collect information from transactions and then give that information back to them so that they can use it illegally. This can happen after a successful withdrawal so that the cardholder may not realize their information has been stolen until it is too late.
This type of fraud is becoming less common, as it involves manual credit card terminals, known as credit card imprinters or “knucklebusters.” Multiple imprint fraud occurs when multiple imprints are recorded for a single transaction.
Someone can commit account takeover by obtaining the personal information of a cardholder (passwords, date of birth, social security number, and so on). With that information, they can pose as the cardholder, report their credit card as stolen, and obtain a new, legitimate credit card to use.
Similar to account takeover, application fraud requires someone obtaining a cardholder’s personal information. With that information, they will be able to apply for and receive a new credit card.
Despite the technology and details required to create a counterfeit card, this type of fraud is quite common. These cards can be created and encoded from scratch and will scan and swipe like a legitimate card.
White plastic cards, similar to hotel keys, can also be encoded with data to perform transactions at ATMs or gas stations. These cards can make purchases or withdrawals as long as a cashier is not involved.
There are many potential ways to commit credit card fraud.
In the State of New York, credit card fraud is taken very seriously and conviction comes with severe consequences. If you have been charged with credit card fraud or are afraid you may be charged with credit card fraud, contact a Brooklyn criminal lawyer today to discuss your options and the most appropriate defense strategies.