The 7 Latest Credit Card Scams You Need To Avoid in 2024

Credit Card Scammers Are Going Full-Force

Waving your credit card in front of a payment terminal was supposed to make your life easier. But every convenience creates new opportunities for fraud.

Credit cards are consistently the most commonly used payment method in instances of fraud. According to the latest data from the Federal Trade Commission (FTC) [*]:

In the first 9 months of 2023, over 83,000 Americans were victims of credit card fraud — with losses of $183 million.

With the surge of credit card scams showing no signs of slowing down, it’s crucial for cardholders to learn how to keep their personal information safe.

In this article, we’ll explore the most common credit card schemes, how they work, and how you can protect your credit card information from scammers.

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‍^‍How Does Credit Card Fraud Happen?

Credit card fraud occurs when someone steals your physical credit card, account numbers, or card information to make unauthorized charges.

Roughly 191 million Americans have at least one credit card [*], offering a unique opportunity for criminals who take advantage of card security flaws or use social engineering attacks to trick you into giving up your card, credit, or money.

Credit card scams range from advanced schemes like keylogging software and card skimmers at gas pumps to basic approaches like shoulder surfing.

But no matter the scam, the goal is always the same. Steal your credit card information or enough of your Personally Identifiable Information (PII) — like addresses, mobile phone numbers, or Social Security numbers (SSNs) — to gain access to your credit and drain your accounts.

7 Common Credit Card Scams To Avoid

1. Interest rate deductions
2. Charity scams
3. Public Wi-Fi scams
4. Reward scams and fraudulent sweepstakes
5. Skimming and shimming scams
6. Overcharge scams
7. Phishing scams‍

1. Fraudsters offering interest rate deductions

In an interest rate deduction scam, fraudsters pose as customer service representatives from well-known lenders and credit card issuers. The scammers contact you by email or phone and explain that you’re eligible for a big reduction in your credit card interest rate. 

This offer will supposedly be a limited-time promotion. The caller (or prerecorded message) will emphasize the need to act immediately and ask you for your credit card information. 

The scam in real life:

In April 2021, the FTC announced an $11 million repayment to victims of the E.M. Systems and Services interest rate scam [*]. The scammers set up fake websites before launching a cold call campaign to offer people reduced interest rates — for a fee ranging from $695 to $1495. 

More than 11,000 became victims of the scam before the fraudsters were finally caught.

Don’t fall for this scam. Do this instead:

• If someone calls, texts, emails, or contacts you in anyway and asks for your credit card, hang up. Honest credit issuers do not make unsolicited calls or request payment over the phone.
• If you want to follow up on an offer that you believe may be genuine, contact the company directly by using the official phone number or email listed in your credit card account contact information.

📚 Related: Did Scammers Use Your Credit Card Numbers Online? Do This →

2. Charity scams on the heels of a trending news story

Charity scams are a type of fraud in which scammers pose as known organizations and encourage people to make charitable donations. The donated money is then sent directly to a criminal’s bank account.

This long-running scam can be easily adapted to trending issues in the news. Fraudsters can quickly edit their scripts and trick donors under the guise of supporting children in need, war victims, or people in disaster areas after a hurricane or flood. 

Once you agree to make a donation, the scammers may sell your credit card information to other criminals on the Dark Web who can use your data to commit various types of identity theft.

The scam in real life:

In March 2021, the FTC shut down a deceptive fundraising ring that operated across 38 states. The tele-funding scam affected 67 million customers; more than 1.3 billion calls were made to steal over $110 million [*]. The fraudsters used robocalls that falsely claimed to support veterans, children's aid, and firefighters.

Don’t fall for this scam. Do this instead:

• If you receive calls asking you to donate, share no information — especially your credit card numbers — and end the call. 
• Before you donate any funds, research the cause and organization using Charity Navigator and the Better Business Bureau’s Wise Giving website.

📚 Related: Charity Scams — How To Quickly Spot a Fake Charity →

3. Public Wi-Fi scams that steal your credit card information

The public Wi-Fi scam, or hotspot scam, is a common method of credit card fraud. Hackers use unsecured networks to gain access to devices and steal data, including credit card information. 

Some criminals create false Wi-Fi signals with embedded tracers that can record credit card details while unsuspecting users enter personal data on their devices. In another variation of this scam, a criminal creates hotspots that prompt internet users to submit their credit card credentials before gaining access. 

The scam in real life:

In April 2022, Florida Attorney General Ashley Moody warned people not to file taxes while on unsecured public Wi-Fi connections [*]. Scammers often wait for people to enter sensitive information using Wi-Fi networks (even at home) and intercept the data.

Don’t fall for this scam. Do this instead:

• Be sure to install high-level antivirus software on your devices and use a VPN.
• If you need to use public Wi-Fi, ask a staff member for the correct login credentials rather than joining any open WiFi networks. 
• Under no circumstances should you submit your credit card details to gain access to unsecured Wi-Fi.

4. Reward scams and fraudulent sweepstakes

Fraudsters are well aware of how much people shop online, and seek to manipulate shoppers who are looking for deals.

In reward scams, criminals trick their victims by promising discounts or coupons in return for making purchases. You might get an email or text that appears professional in its design and messaging. 

But instead of legitimate credit card rewards, this scam lures people to click on bogus links that trigger malware downloads. Once that happens, the scammers can access your credit card data.

The scam in real life:

The Department of Justice indicted a Mississippi couple on 18 counts of conspiracy related to a sweepstake scam. Pretending to run a multi-million dollar lottery, the defendants managed to steal over $300,000 from victims who prepaid tax amounts on the false winnings [*].

Don’t fall for this scam. Do this instead:

• Don’t pay any credit card fees for unexpected “rewards.” Authentic rewards from reputable businesses rarely require upfront costs. 
• If someone is offering a reward from a reputable company, check their website or reach out to their customer service to verify it’s legitimate. 

5. Skimming and shimming scams

In skimming and shimming scams, fraudsters install skimming devices on or inside credit card payment terminals and card readers, which collect card data.

Known targets for this scam include gas pumps and automated teller machines (ATMs).

Over the last few years, credit card companies installed Europay, Mastercard, and Visa (EMV) chips to prevent physical card scans. However, card skimming remains one of the most common credit card scams. According to the FBI, skimming costs financial institutions and consumers over $1 billion every year [*].

The scam in real life:

Six individuals were arrested in Florida after the FBI and Miami state police busted a skimming operation that stole more than $5 million from victims across eight states [*].

Don’t fall for this scam. Do this instead:

• Look for signs of tampering or misuse whenever you use your credit card at a shop or ATM. 
• Warn employees if you suspect the presence of a skimmer, especially on any external units that aren’t under the watch of company staff (like a gas station pump). 
• Your chances of avoiding this scam improve if you switch to contactless or mobile payments.

📚 Related: Here’s How You Can Prevent Credit Card Cloning →

6. Overcharge scams that ask you to “verify” your card numbers

In an overcharge scam, fraudsters send emails or make phone calls notifying you about an overpayment on your credit account. But to access your refund, you first need to “verify” your credit card numbers. In reality, there is no overcharge, and any attempt to verify will send your credit data to a scammer.  

The scam in real life:

The electric utility provider Evergy warned customers in Lawrence, Kansas, about an ongoing overcharge scam [*]. In these calls, a fraudster claiming to be an Evergy representative told customers they’ve been overcharged on a recent electric bill and must provide their credit card information to receive a refund.

Don’t fall for this scam. Do this instead:

• Do not give up any sensitive information over the phone to unsolicited callers.
• If you suspect an overpayment scam, hang up immediately, notify your credit card issuer, and monitor your statements for suspicious activity.

📚 Related: The Top 5 Credit Protection Services (How To Choose) →

7. Phishing scams asking for payment or card details

A phishing scam is a type of social engineering scheme in which thieves contact victims  through emails, text messages, or phone calls. Fraudsters will often pose as well-known businesses, agencies, or organizations in an attempt to build trust before defrauding victims of sensitive or valuable information.

For example, someone claiming to be from your bank might call to “warn” you that your credit card numbers have been compromised. They’ll use urgent or threatening language to get you to provide them with your numbers and other sensitive information they can use for fraud. 

The scam in real life:

In August 2021, federal investigators charged four executives of Allied Wallet for their role in processing over $150 million in credit card transactions through more than 100 sham merchants [*].

Don’t fall for this scam. Do this instead:

• If you receive unexpected communication from someone with urgent demands for money or credit card payments, say no. 
• Never click on any links or download attachments in emails from unknown senders.

📚 Related: What Is Credit Protection? Are You Making the Most of It? →

What To Do if You’re the Victim of a Credit Card Scam

If you fall victim to a credit card scam, a fast response can help limit the financial damage. When you realize you’ve been targeted, take the following six steps to protect your personal information:

1. Cancel your accounts

Contact your credit card issuer or bank and ask them to freeze the compromised account. Most financial institutions have security protocols to protect your credit funds. Be prepared to provide extra verification to regain control of your compromised accounts.

2. Freeze your credit with all three bureaus

To limit any potential impact on your credit score and credit profile, freeze your credit with all three major credit bureaus (Experian, Equifax, and TransUnion). A credit freeze is a free tool that prevents anyone — including scammers — from accessing your credit file and taking out loans or opening new accounts in your name.

To freeze your credit, contact each of the three bureaus individually and ask for a freeze:

📚 Related: Credit Lock vs. Credit Freeze: Which Do You Need? →

3. Request a free credit report

When you contact the credit bureaus, request a copy of your credit report. Look through the documents to check for any suspicious activity that could alert you to further fraud. 

You can also request a free credit report at AnnualCreditReport.com. 

For instance, if you notice any account information changes, new credit card applications or new cards, or loan requests, alert the credit bureau. 

Pro tip: Download a credit monitoring app to alert you of any suspicious activity on your accounts or credit file.

4. Report the scam to the authorities

Submit a fraud report to the FTC, and file a police report with local police. Reporting fraud provides crucial information to law enforcement that can help them track down scammers or, at the very least, protect other people from falling prey to more scams in the future. 

• You can submit your report to the FTC online through this website: https://reportfraud.ftc.gov
• For additional support, contact the FTC at their Identity Theft Hotline: 1-877-ID-THEFT (1-877-438-4338)

Also, report the fraud wherever your card was used. Fraud departments at many companies can stop a criminal from making any more unauthorized charges.

5. Create new secure passwords

To help prevent further unapproved use of your credit card, change all of your passwords. Many fraudsters can access multiple accounts through a single compromised login — so you should quickly adjust your passwords after a breach. 

You can increase your security when you use a password manager. Aura’s password manager stores all your passwords in a secure place and can alert you if an account has been compromised.

📚 Related: My Child Used My Credit Card Without Permission — Help →

6. Dispute fraudulent charges

Thankfully, The Fair Billing Act protects consumers from the financial fallout of harmful credit card scams [*]. Once your accounts are secure, you can seek reimbursement. Contact the affected companies to initiate chargebacks on any fraudulent payments made on your credit card. 

📚 Related: Help! My Debit Card Was Charged For Something I Didn't Buy! →

7. Regularly check your credit report and bank statements 

Scammers are almost always after your financial accounts. Check for the warning signs of identity theft — such as strange charges on your bank statement or accounts you don’t recognize. An identity theft protection service like Aura can monitor your credit and statements for you and alert you to any signs of fraud. 

📚 Related: Is Discover Identity Theft Protection Worth It? →

How To Protect Yourself From Credit Card Scams

1. Only share information on “secure” websites and stores. Reputable businesses have advanced cybersecurity features to keep your data safe from scammers and criminals. You can usually determine if a web page is secure if you see a padlock icon before the URL. If the icon is not present, do not submit your credit card details on that page.‍
2. Keep your devices updated and safe. Even with strong device protection, criminals can intercept your credit transfers on public networks. Do not input your credit card information or use online banking services when connected to open hotspots — you don’t know who is watching.‍
3. Be cautious about sharing your credit card information. Store your credit cards in a safe space and only share your card numbers with a trusted third-party service after you have confirmed its authenticity. Also, beware of phishing emails, texts, and calls that are designed to steal your information.‍
4. Avoid public Wi-Fi networks for shopping or entering card details. A staggering 83% of those targeted online reported paying by credit card, money transfer apps, or bank account debit [*]. Make sure you use antivirus software and a secure VPN to protect your credit card details from hackers. ‍
5. Consider signing up for identity theft protection. Aura’s top-rated identity theft protection monitors all of your most sensitive personal information, online accounts, and finances for signs of fraud. If a scammer tries to access your accounts or finances, Aura can help you take action before it’s too late. Try Aura’s 14-day free trial for immediate protection while you’re most vulnerable.

If the worst should happen and you fall victim to a credit card scam, an identity theft protection service can help you recover lost money. All Aura plans come with 24/7 customer support from a team of Fraud Resolution Specialists and $1 million insurance coverage for eligible losses due to identity theft.

📚 Related: Debit Card Fraud: How It Happens and How To Avoid It →

Finally, Don't Ignore These Warning Signs

Don’t wait for fraudulent charges on your credit card statement to spur you into action. Keep an eye out for these red flags:

• Unsolicited texts, calls, or emails: If you see an increase in communications from strangers claiming to represent government agencies (via phone, text, email, post, social media, or in-person), you could be a target of a credit card scam.
• Bank alerts about suspicious activity: Your bank, card issuer, and the major credit bureaus have extensive anti-fraud services like credit monitoring and spending alerts. The bureaus will notify you if they detect suspicious behavior on your account.
• Suspicious charges to your credit card accounts: Many fraudsters are careful to make only small changes that will go unnoticed before carrying out larger thefts (a common scam called “carding”). Look for unfamiliar payments, small unexplained transactions, or payment activity from strange locations.

Enjoy the benefits of real-time alerts of potential identity theft and comprehensive insurance coverage for stolen funds with Aura. Sign up for Aura’s financial protection services use your credit cards worry-free.

Your shield against sinister credit card scams — Try Aura free for 14 days.