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3 Ways in Which You Are Accidentally Becoming Part of Credit Card Scams

October 17, 2018

Usually, when we talk about credit card fraud, we mean theft committed by criminals who have stolen credit card information or obtained it in an illegitimate way. However, fraud and scams can also be carried out by legal cardholders unknowingly, given that the terms and conditions of credit cards are often lengthy and difficult to understand. So, if you break credit card terms by accident or on purpose, you may have to deal with legal or financial consequences. It could even impact your ability to receive credit in the future. Some of the ways in which you may be accidentally committing credit card fraud are as follows:

  1. Making use of fake credit card numbers to sign up for free online trials

When signing up for a free trial of a product or service, you are often asked to provide your credit card number; and, if you forget to cancel this service, you may be charged. To get around this problem, many consumers make use of “fake” credit card numbers offered by certain sites for this very purpose. Most of these sites claim that the number is fake and won't pass verification tests. However, it’s often difficult to identify supposedly legitimate sites from the shady ones; because of this, you risk unknowingly using a stolen card number. Even if the card number is fake, and therefore legal to use, you may be breaking the terms and conditions of the site offering free trials by using a fake number. Thus, the best thing to do in such cases is to provide your real credit card number for trials and then set up a reminder to help you remember to cancel it on time.

  1. Using another consumer’s credit card

Using someone else’s credit card without permission is illegal – everyone is aware of this fact. But using another person’s card with permission also breaks the terms and conditions of the issuer. How often have you asked someone else to sign on the credit card slip after a purchase, or allowed someone to punch in your card numbers for the same purpose? If the necessity arises in this type of situation, you cannot lodge a dispute with the issuer, or make claims against charges if the need arises.

  1. Making false statements on your credit card application

Intentionally providing false information on credit applications, for example, age or income, can be counted as theft by deception. The penalties may include anything from fines, probation, community service, or even jail time. And if you default, you may even have to face criminal charges. Other consequences include interest rate spikes, closed accounts, poor credit history or the inability to open a future bank account.


Ari Page Ari Page is the CEO of Fund&Grow. He resides in Spring Hill, Florida with his wife and two children.

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