A fraud or theft committed by using credit card or any similar payment mechanism as a fraudulent source of funds in transaction. The purpose involved in such kind of fraud is to obtain goods without paying or to steal a certain amount of money from an unauthorized account. Identity theft is also used interchangeably with credit card fraud. The person who carries out the fraud begins it by either physically getting the access to the card or by compromising the data associated with the account. The compromise of the data happens by many ways. One of the most common ways to conduct the fraud is done by the shop keepers who note down the credit card number for later use or the most common happening of committing credit card fraud happens on the internet. The wide use of internet by the people all around the world leads to security lapse which leads to compromising of millions of accounts.
If the card is stolen that should be reported immediately and the cardholders should be vigilant regarding their account. They should ensure that they check their account on a daily basis to keep a check of forgery. There should be constant awareness in case there is any suspicion, unknown transactions or activities.
As a card holder one can take various precautions to combat the fraud. One can review the charges regularly and must report unauthorized transactions immediately. Also Installing virus protection software on personal computers will reduce the chances of internet security lapse.
One is advised to use caution when using credit cards for online purchases, especially on non-trusted websites. And last but not the least keep a record of account numbers, their expiration dates, and the phone number and address of each company in a secure place.