Credit theft and fraud can creep up on you. The bad news could come your way via a text alert from your credit card company about unusual activity. Or when you log into your account and see a suspicious charge on your statement. Maybe you received a notice from a collection agency for an account you never opened. Worse yet, you get turned down for a loan because of a poor credit history, one you didn’t create. Credit theft and fraud affect millions of us. What can you do to prevent it? Plenty.

Types of credit card scams

As technology advances, scammers continuously devise new methods to trick consumers through tactics like phishing, card skimming, identity theft, and fraudulent credit card offers. Understanding how these scams work and recognizing the warning signs can help you stay protected from financial loss and identity theft. In this guide, we’ll break down the most common types of credit card scams and provide tips on how to stay safe.

Charity scams

One way scammers get a hold of credit card info is through charity scams. They’ll call, text, or email posing as a charitable organization, often in the wake of a disaster or other newsworthy event. From there, they’ll ask for donations with a credit card.

Avoiding charity scams

  • If you’re considering giving, do a background check on the organization and see if it’s legitimate — and how much of the donations they receive go toward their cause.
  • Use legitimate resources like Charity Navigator, Better Business Bureau, and Charity Watch.

Account scams

Scammers will also impersonate banks and credit card companies. Again, they’ll call, text, or email, but this time it’s with an urgent word that something’s “wrong” with your account. Maybe your card has been compromised, there’s an overcharge, or there’s some other suspicious activity. In any event, the scammer will ask for your card info to “remedy” the issue, ends up with your card details and starts racking up charges. Worst, they could sell that info on the dark web for others to commit fraud with it.

Avoiding account scams

  • The best defense here is to contact your bank or credit card company directly. Don’t give up any info over the phone, and don’t click or tap on any links.
  • Head to the bank or credit card website and log in to check your account status there. Likewise, you can call them yourself using the number on their website or the back of your card and get your account status that way.

Interest rate deduction scams

These scams play out much like the account scams above, but with a twist. Here, a scammer poses as a customer service rep from a bank or credit card company and offers you a lower interest rate. All you need to do is, of course, hand over your card info.

Avoiding interest rate deduction scams

  • Watch out for urgency. Scammers will implore you to act now before the “offer” expires. That’s often a sign of a scam.
  • As with account scams, deal directly with your bank or credit card company. Contact them using their official site or customer service number to see if the offer is indeed real.

Skimming and shimming scams

Ever look at an ATM and feel like something’s off? You might have come across an ATM skimmer or shimmer scam. Here, a crook tampers with an ATM by attaching a physical device that skims card info as people grab or deposit money. From there, a keypad overlay or tiny pinhole camera captures your PIN as you tap it in. With that info, the crook has everything they need to create counterfeit cards.

Avoiding skimming and shimming scams

  • If a card reader or keypad wiggles even slightly, or if the keypad feels spongy or sticky when you press the buttons, you might be looking at a hacked ATM.
  • Also keep an eye out for extra pieces of plastic stuck to the ATM, which can be places where a crook has concealed a camera. Often, they’ll disguise cameras in brochure holders and overhead lights. In all, anything that looks tacked on or out of place gives you a good reason to use another ATM.
  • While out and about, consider using ATMs installed at a bank. These are watched more closely than ATMs in public places, which makes them harder to tamper with.
  • Cover the keypad when entering your PIN. Thieves need your card number and your PIN to access your account with a copycat card. By covering the keypad, you prevent cameras and onlookers from seeing your PIN.

Public wi-fi scams or hotspot scams

Whether travelling or just grabbing a cup of coffee, you’re bound to come across public wi-fi in plenty of places. Scammers take advantage of this in a couple of ways. First, hackers tap into these often-unsecured networks and steal data, including credit card info. Second, some create phony hotspots that ask for a credit card payment for access, which gives them an even more direct method for stealing card info.

Avoiding public wi-fi scams

  • Use your phone’s data connection instead of public wi-fi, particularly when doing any kind of shopping or banking online.
  • If you choose to use public wi-fi, connect with a VPN. A VPN like ours creates an encrypted “tunnel” with bank-grade encryption, which protects your data from hackers and scammers.
  • Also, steer clear of any public wi-fi that asks for payment. While it could be legitimate, it isn’t worth the risk.

More ways to keep your cards safe

Consider what you’re carrying — and where you carry it

The physical safety of your cards counts as well. When it comes to devices and things like debit cards, credit cards, and even cash, keep what you bring with you to the bare minimum when you go out. This can reduce your losses if something unfortunate happens. If your phone has a credit card and ID holder, don’t put your cards in it. That way, if your phone gets snatched, those important cards don’t get snatched as well.

Call your bank and credit card companies

Before you head out of town, give your bank and credit card companies a call. They have anti-fraud measures in place that look for unusual activity, such as when your card is used in a location other than somewhere relatively near your home. This can result in a freeze, which can put you in a lurch if you’re looking to withdraw cash or make a payment. A quick phone call can help prevent this.

Monitor your identity and your credit

The problem with many card scams is that you only find out about it once the damage is done. Actively monitoring your identity and credit can spot a problem before it becomes an even bigger one. You can easily take care of both with our credit monitoring and identity monitoring as part of our McAfee+ plans. Additionally, our identity theft coverage and identity restoration can help with up to $2 million in support if it’s determined you’re a victim of identity theft.