Common types of credit card scams

Credit card scams can happen anytime, virtually anywhere. So what can you do to avoid them or deal with them if they happen? 

Thankfully, there’s support available to minimize the effects, from federal protections to individual card security measures. It’s also important to help protect yourself by learning to recognize the signs of a scam. Read on to learn more.

Key takeaways

• Scams can take many forms. It’s important to know the warning signs.
• You can help avoid credit card scams by recognizing spam, setting up a VPN and using virtual card numbers.
• If you think you’ve been scammed, you can contact your card issuer and the credit bureaus, reset passwords and file a report with the FTC.

Credit card scams happen when a lie or trick prompts you to initiate a payment from your credit card. It could be online, over the phone, by email, on social media or in person. 

Identity fraud happens as a result of identity theft—when personally identifiable information (PII), like your account numbers, Social Security number, sign-in IDs and passwords, is taken. With that info, someone can access your credit card and do things like open credit accounts, make purchases or access funds.

Credit card scam tactics are evolving all the time. So the circumstances aren’t always the same. But here are some examples of what they might look like and how they might work:

Imposter scams involve a criminal posing as someone in authority to try to get your money or your personal information. One way they can do this is by phishing.  

As well as phishing by email, some other types of phishing attacks are:

• Smishing: A smishing scam is when scammers send fake text messages. The term smishing is a combination of short message service (SMS) and phishing. 
• Vishing: Vishing is a phone scam. The word is a combination of voice and phishing.
• Pharming: Pharming is a scam used to direct users to a phony website.

And these can be employed in imposter scams like:

In an ominous-sounding call from someone claiming to be from the government or another official agency, you’re told you have a debt or a fine you didn’t know about. They ask for your card details and say if you pay it off quickly, you’ll avoid a more serious penalty. 

Potential signs of this scam:

• The voice sounds robotic or the message is prerecorded
• Generic references to law enforcement, like “the local police”
• Threats to fine, arrest or even deport you if you don’t provide your credit card info

When a major disaster gets widespread media coverage, you want to help. There’s a website for a charity that looks official even though you’ve never heard of it before. But it could be a trap, where you make a credit card donation online and they pocket your money as well as your account information. 

Potential signs of this scam:

• Lack of detail about how your donation will be used
• You feel rushed to make a donation immediately
• Misspellings or other inaccuracies

You get a message saying you’ve been overcharged for something and you’re entitled to a refund. The message claims that you’ll get it credited back to you if you provide the company with your credit card information. 

Potential signs of this scam:

• Requests to click on a link to update or confirm your info or register for the refund
• The supposed overcharge is for a product you never bought or a service you don’t use
• You’re told you must act immediately or that it’s the last chance to get your refund

A legitimate-looking retailer’s website, app or email promises a great deal on a product or service. You hand over your money or your information, but you never receive the item. 

Potential signs of this scam:

• A website without a secure connection—with a URL that begins http:// instead of https://
• Messages with misspellings or poor grammar
• Offers that seem too good to be true

A company tells you it has special relationships with credit card issuers, and for a fee it can help you get a lower interest rate on your cards. It might be able to help but, according to the Federal Trade Commission (FTC), you have the same chance of success if you talk to the lender yourself.

Potential signs of this scam:

• A guarantee to lower your interest rate and save you thousands of dollars
• You’re told the lower rate is only available for a limited time, so you need to act now

A company offers debt relief or credit repair for an upfront fee. You’re looking for help managing your finances, so you hand over the upfront fee they ask for. In reality, they can’t help you—and they might not even try.

It’s important to note that there are legitimate credit counseling and debt relief services. But there are also scammers posing as legitimate service providers. 

Potential signs of this scam:

• The company reaches out to you first
• A guarantee of a positive result
• A request for a large upfront payment

An illegally installed device over a card reader at a gas station records your PIN and other credit card information. This is called skimming. Thieves might use the information to create a fake card tied to your account or sell the information to other scammers. 

Potential signs of this scam:

• Loose, crooked, scratched or damaged card readers or keypads at any retail point of sale
• Card readers at fuel pumps far from the store or out of view of the attendant
• Card readers at ATMs in heavily touristed or poorly lit outdoor areas

You brought your laptop to the local cafe and connect to what looks like the cafe’s Wi-Fi. But it’s a scammer’s Wi-Fi hotspot named to look like the real thing—and when you use your credit card, they can access your personal information. In fact, even the cafe’s official Wi-Fi may not be safe from hackers if it doesn’t require a password or it gives the same one to all its customers. 

Potential signs of this scam:

• Free Wi-Fi networks that appear on your phone, tablet or laptop
• A generic network name or one that’s almost the same as another one in the area
• Employees at your location don’t recognize a Wi-Fi network when you show them

As well as knowing the signs of credit card scams, it might also help to keep in mind these best practices:

• Avoid spam calls. Put your number on the National Do Not Call Registry at (888) 382-1222 or donotcall.gov.
• Know the law. The FTC Telemarketing Sales Rule requires people who call you with offers or requests to follow specific guidelines. Knowing what they are can help you recognize when something is wrong.
• Use other methods of credit card payment. Tap-to-pay or a digital wallet can help you sidestep credit card skimmers. Using virtual credit card numbers allows you to shop online without giving merchants your actual card number. And according to the Consumer Financial Protection Bureau, inserting your card’s EMV chip for payment is a safer option than swiping.
• Make contact on your own. If you’re suspicious, put the phone down or close the message. Look up the company online and call or message them back using the contact details you find online.
• Get a VPN. If you frequently use public Wi-Fi, you may want to pay for a virtual private network, which provides a more secure internet connection for your device.
• Be honest with yourself. When it comes to spotting a scam, remember the old saying: If it sounds too good to be true, it probably is.

If you think you’ve been a victim of a credit card scam, here are some steps you can take:

1. Contact your creditors. If you suspect you have a fraudulent charge, you can start by calling the toll-free number on the back of your card. You’ll answer some questions and start the process of filing a claim. If you’re a Capital One cardholder, you can instantly lock your card from the Capital One Mobile app so no one else can use it.¹
2. Contact the credit bureaus. Placing a fraud alert on your credit reports can help prevent identity thieves from opening credit in your name. Placing a freeze on your credit reports means that no one, even you, can open credit until you remove the freeze. 
3. Contact the authorities. You may want to file a report at IdentityTheft.gov. You can also file a report with your local police or sheriff’s office and your state attorney general. 
4. Check other accounts and change your passwords. If thieves have the details from one of your credit card accounts, they may have more. It’s a good idea to change all passwords and PINs.
5. Monitor your credit. Check your credit reports to make sure all the activity in them is yours. You can request a free credit report from the three main credit bureaus—Equifax®, Experian® and TransUnion®—at AnnualCreditReport.com. You can also check your TransUnion credit report and VantageScore® 3.0 credit score for free with CreditWise from Capital One. If you notice a mistake or an unauthorized account, the FTC says you can dispute it with the credit bureau.

Here are some frequently asked questions about credit card scams:

Criminals are always looking for new ways to get your information and your money. The good news is there’s a lot you can do to help keep yourself safe and stay ahead of the scammers. 

Many federal and state agencies—such as the IRS, FBI, FTC and USA.gov—have running lists of the latest scam warnings. They can provide you with resources for reporting a scam or help you if you feel you’ve been a victim. 

Plus, you can use CreditWise from Capital One to check your TransUnion credit report for any changes. CreditWise also scans the dark web and will send an alert if it finds your personal information on unsafe sites. It’s free to use whether or not you’re a Capital One cardholder. And it won’t impact your credit scores.