Definition

• Credit card fraud means unauthorized use of an account. It is committed by a thief either physically using your card or harvesting and using your information to create a dummy card or make online purchases. The thief typically makes many purchases as quickly as possible to max out your credit line before you realize you're a fraud victim.
  
  

Methods

• Some fraudsters steal your card directly by grabbing your wallet or purse. Others do it more subtly, rigging a skimming device on a self-serve gas pump or automatic teller machine or running it through a hand-held skimmer at a business, according the technology site, Wired. Criminals may also try to convince you to give your account number on the phone or over the Internet. You may also receive emails claiming to be from your bank, PayPal, eBay, Amazon or another popular website asking for account information. Computer-savvy thieves can even trick you into downloading malware that monitors your keystrokes and sends credit card numbers, bank information and passwords directly to fraud rings.
  
  

Detection

• You often don't know your account has been compromised until your statement arrives. You might find out if your card is rejected for being at the limit when you try to buy something. Your bank may freeze your account and call you if it detects suspicious activity patterns. For example, it might notice a large number of purchases within a short time span or overseas orders. You can catch credit card fraud more quickly by signing up for online account access and reviewing your statement every week, ABC consumer reporter Ric Romero recommends.
  
  

Prevention

• Prevent credit card fraud by keeping your card safe and protecting the account details. Watch merchants, restaurant servers and others when making a payment. Don't let them walk away with the card and be alert for suspicious swiping. Never give your card number to a phone caller, no matter who he claims to represent. Make online purchases only from well-known websites and always run an up-to-date spyware detection program.
  
  

Action

• Immediately call your bank and the credit bureaus if you are a credit card fraud victim. The Federal Trade Commission states you are only liable for $50, no matter how much the criminals steal, but fast reporting minimizes the damage you must clean up. Each credit bureau has a telephone number on its website. You only have to call one, as the Identity Theft website states it will notify the others. Monitor your credit card statement for the next few months for fraudulent charges that might take a while to appear.