Credit or debit card fraud is a term used when someone illegally uses another person’s credit or debt card for payment. Credit card fraud also includes opening a new account in another person’s name, and using said card for purchases. The fraud is generally a form of theft, as purchases are made with the intention of not paying for the items.

Credit card fraud generates millions of dollars in unpaid charges each year. Often this crime is not prosecuted because the cost to investigate and prosecute is greater than the amount charged. Only in cases over $2,000 in many case are charges even considered. Credit card agencies generally absorb the expenses incurred illegally, and have arrangements to pay merchants in most cases. Merchants that accept credit cards have instituted policies to try to minimize the use of fraudulent credit cards by requiring photo identification, or your home zip code.

If illegal charges are incurred on your credit card, contacting the credit card company will generally get the charges removed. While legally you can be liable for $50 in illegal charges, most of the time the credit card company will not require you to pay this amount. However, being a victim of credit card fraud will take you time to resolve and could limit your ability to obtain new credit .

Credit card fraud on a small scale occurs often in restaurants or other service type industries, where a tip is given. It is important to verify your credit card receipts with your statements to verify that you were not overcharged. Because tips are often added to the credit card transaction after you have left the place of service, it is not uncommon to be overcharged. If you have discovered that you have been charged more than expected, you should contact the credit card company and the manager of the business to report the problem.

Credit card fraud can happen even when your credit cards were not lost or stolen. Often the card numbers, including the security numbers are recorded during a regular transaction. The numbers are then held, sometimes for weeks or months before you will notice unauthorized transactions. To protect yourself from this crime, you should never leave your card unattended. Also, use caution when giving your credit card number out over the phone, and do so with only reputable businesses.

Credit card numbers can be traced back from receipts, bills, and even in some cases credit card applications. Using a paper shredder will protect you from being a victim of credit card fraud.