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Scared of Credit Card Frauds? Learn the Tricks to save yourself!

By Sakshi Srivastava - 07 Jun 2021 Last Updated: 11 Aug 2022
Scared of Credit Card Frauds? Learn the Tricks to save yourself!

Do you use your credit card on a frequent basis? If you answered yes as most of the people do you may have previously been a victim of credit card theft or one of the many online shopping scams that seem to pop up every now and then while you are surfing through internet. Thus making those purchases or simply carrying out payments. The truth is that, as the quote goes, Internet buying is a two-edged sword. It is simple and quick. You can shop from the privacy and convenience of your own home, but the biggest caveat of adapting to this process is that there is no surety of as to when you can be the victim of fraudulent activities.

Credit card fraud can take many various forms, including fraud involving the use of a payment card of any kind, and more. Credit card fraud occurs for a variety of reasons. Some are aimed to steal money from accounts, while others want to get free things. Furthermore, it is critical to recognize that credit card fraud is intimately tied to identity theft. According to the Dubai Financial Services Authority, about 5% of all persons over the age of 22 in the United Arab Emirates have been or will be victims of identity theft. Furthermore, since the last count in 2008, there has been a 21% increase in the prevalence of identity theft.

Therefore in this blog we will inform you about the various credit card frauds as well as what practices and steps you can take to ensure that you don’t become the victim of malicious activities yourselves.

What is Credit Card fraud?

When someone obtains your credit card information and uses it for their personal gain, this is referred to as credit card fraud. Scammers and fraudsters always find a way to get their hands dirty because they have a knack for finding loopholes in technology. And, guess what? There are several flaws in credit card payment systems. Credit cards that have been lost or stolen are sometimes used by criminals to perpetrate fraud. Others carry out illicit transactions without ever touching the credit card. To access the victim's funds, card-not-present fraud just requires the perpetrator to know basic card or account information.

In the event of a security breach, we realize that we have no control over the information kept on a credit card company's server. We can keep one step ahead of the fraudsters and beat them at their own game.

What are the various types of Credit Card frauds you may encounter?

Although the list regarding various types of credit card frauds is endless, we will try to cover the predominant ones which you can face in your day to day lives if you are an avid credit card user. The list is explained below.

types of Credit Card frauds

Application Fraud

Identity theft is frequently associated with application fraud. It occurs when someone else uses your name to apply for credit or a new credit card. Typically, they will steal supporting documents first, which will be used to substantiate their bogus application. To prevent this form of fraud, banks have put in place a variety of safeguards. The most significant is that just original paperwork is required. They will also frequently call employers to verify their identities. Unfortunately, criminals frequently falsify documents and provide bogus contact information for employers. Unfortunately, certain protecting methods can always be circumvented.

Account Takeover

One of the most common types of credit card fraud is account takeover. Essentially, a criminal will obtain all of your personal information and essential documents in some way. This is normally done via the internet. They will then claim to be you and contact your credit card company, requesting that the address be changed. Because they have hacked into or somehow gotten your personal information, they will present proof of identity. A new card will be delivered to the fictitious address, allowing the criminal to file charges. Unfortunately, this form of deception is not uncommon. As a result, it is critical that you be aware of them and that you are able to take the necessary precautions to prevent fraudsters from conducting credit card fraud against you.

Fake Cards

Making false credit cards requires a lot of time, talent, and effort, but that doesn't stop a determined thief. A card must meet certain complicated security criteria, and as cards become more advanced, this is becoming increasingly difficult. There's a magnetic strip, a chip, and, in certain cases, holograms. However, a skilled forger can create these cards with fictitious names and numbers and use them to conduct transactions. Because the card isn't linked to an account, the credit card company won't pay for the transaction because it can't be traced back to a specific user. The criminal, on the other hand, will have already left with their purchases by that time.


CNP fraud can be committed against you if someone knows your card's expiration date and account number. This can be accomplished via phone, mail, or the internet. It basically means that someone uses your card without having it physically in their possession. Merchants are increasingly requiring the card verification code, making CNP fraud significantly more difficult. However, if a fraudster can access your account number, they are likely to know your card verification code as well. Furthermore, the verification code has only 999 potential possibilities. As a result, many crooks try to order products in small quantities until they figure out the correct amount.


Skimming is the most common method of committing counterfeit card fraud. This means that a counterfeit magnetic swipe card contains all of your card information. This forged strip is then utilized to build a completely working counterfeit card. It's essentially a carbon duplicate, which means that fraudsters may use it to pay for certain items by just swiping it through a machine. This type of fraud can also be perpetrated by someone who has access to your credit card information.


The creation of a "spoof" website is one of the oldest and most prevalent internet commerce scams. The website will feature a well-known company's logo and may look very similar. A glance at the browser bar and the URL mentioned there, on the other hand, may reveal a different narrative. Target's genuine URL, for example, would begin with Target.com. A spoof address can look like shoptarget.com or something like.


A doctored card is one that has had its metallic stripe removed by a powerful magnet. Criminals do this and then modify the card's details to match those of valid cards. When a criminal tries to pay for something, this card will obviously not work. They will, however, utilize their seduction to persuade a merchant to manually enter the card info.

What should you do if you're a victim of credit card fraud?

If there ever arises a situation under which you fall victim of credit card frauds, you should at least follow the below mentioned tips to secure yourself.

victim of credit card fraud

Contact your credit card company as soon as possible

Call as soon as you see anything odd or discover your card has been stolen or lost. Your credit card company will next conduct an inquiry to confirm the fraudulent activity and cancel any illegal charges.

Update your security information

Any PINs, internet passwords, or security information that you feel has been hacked should be changed.

Contact a credit bureau

Set up a security alert on your credit report with one of the main credit agencies, such as Al Etihad Credit Bureau. The alert will be sent to other bureaus, and you will receive a copy of your report.

Look over your bank statement

Regularly review your monthly statements and alert the bank if you notice any unusual transactions.

How to prevent online Credit Card Fraud?

  • Check that the web address begins with https before proceeding with the online payment.
  • When making a purchase, only use reputable websites.
  • Update your anti-virus, firewall, and spyware software.
  • Never send your credit card information in an email.
  • When purchasing online, avoid using public computers at libraries or internet cafes.
  • When making purchases, avoid utilizing public Wi-Fi.

Other ways to protect yourself from Credit Card frauds

  • Always shred anything that has your credit card number on it.
  • Make sure you don't sign blank Credit Card receipts
  • Don't give out your Credit Card number
  • Credit cards that have been stolen or lost should be reported immediately.
  • Make strong passwords and safeguard them
  • Scammers are active at gas stations and ATMs so beware of them


Being a victim of credit card frauds is not the place you would want to be. Be cautious while using your card and look for all possible red flags and follow the above mentioned tips if you encounter a fraud. Apart from that, if you ever come across a fraud or learn about a scammer, try your best to inform your family and friends. Being aware is the most effective safeguard against credit card fraud. Nevertheless if you have any query against Credit Card frauds, feel free to contact Dhanguard, where we can provide you with quick solutions for your problems.

By Sakshi Srivastava

07-Jun, 2021

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Credit Card Related FAQ

Frequently Asked Questions

  • How to Apply for a Credit Card?

    You can apply for credit card online by visiting Dhanguard and selecting type of credit card as per your requirement. We will further assist you with the process and requirement as per your requirements.

  • What is the eligibility Criteria for Credit Card in UAE?

    According to the UAE Central Bank regulations, any individual should earn a minimum salary of AED 5,000 per month to be considered eligible for credit card. Also, the Debt Burden Ratio of the consumer should not exceed 50%, to be eligible for a credit card.

  • What is the late fees applicable on late payment for Credit Card?

    Late payment fees are charged by banks if the minimum payment due on a credit card is not received on or before the payment due date. It vary from bank to bank but is generally about AED 250 per month.

  • What is Sharia Compliant Credit Card?

    As per the Shariah law, some banks in the UAE offers Shariah Compliant Credit Cards. This type of Islamic credit card stringently follows shariah principles that charges profit rate instead of interest rate as Riba is sternly prohibited as per the Islamic law. Though, Shariah Islamic credit card works similarly like a traditional credit card but with minor difference in the offered benefits.

  • What are the features of Credit Card?

    The credit card has a fixed credit limit, grace period, annual percentage rate, annual fees and bifurcation in offered benefits.

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