Recognizing Credit Card Frauds

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Credit Card Applications » Research » Guides » Cardholder Benefits » Recognizing Credit Card Frauds

Recognizing Credit Card Frauds


Updated: December 25, 2012

The content is accurate at the time of publication and is subject to change.

Credit card fraud has become one of the biggest reasons why a lot of Americans are too burdened with debts; debts that they never really incurred. Credit card criminals use lost, fake or stolen credit cards.

Both business and consumers fall as victims of credit card fraud. If you are a businessman, what can you do to prevent frauds from taking place in your business?

Here are some things you should check on:

With transactions done personally:

  • Be very meticulous with identifications presented. Check for some alterations on the card and ID`s for most often than not professional credit card thieves also come up with counterfeit ID`s.
  • Check closely on the signature. A smeared signature could be an indication of a stolen credit card.
  • After checking on the legibility of the signature, compare the signature on the cards, the identifications and the signature placed on the slip. A slight difference should be considered a red flag.
  • Check on the hologram on the card. A good credit card; something which is free from tampering will show the three-dimensional graphic that seem to be moving when you tilt the card.
  • Check whether the credit card on your hand belongs to the list of stolen cards.

When transaction is made online or through the phone:

  • never push through the transaction unless all the information you needed are provided
  • When a customer provides a different mailing or shipping address different from the address on the credit card, you have two options: call your customer for order and address confirmation or follow the shipping policy of the company to ship the items on the address found in the credit card.
  • Some purchases maybe done through free emails or email forwarding address programs. When this happens, don`t process the order yet. Make it a rule of the thumb to ask the customer to provide you an email with a valid domain or an ISP, this way there would be a way for you to track the transaction back.

Here are some other indications that an order is made under fraud:

  • when orders are made overseas and there in no seen purchase pattern
  • when the order is requested for express or overnight shipping
  • when a large order is made (especially when the original owner does not usually make large purchases)
  • when a different shipping address is provided

Just take note of the following indicators and you`ll spare your business of credit card frauds.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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