What’s credit card fraud?
Credit card fraud is when someone uses your credit card or card details – without your permission – to spend your money, withdraw cash or buy things in your name.
Spotting the signs early means you can act fast to protect yourself. Keep reading to find out how credit card fraud works, the most common scams and how to stay safe.
How credit card fraud happens
Fraudsters use all sorts of sneaky tactics to get their hands on your money. Here are some of the most common:
Stealing your details from an ATM
This is when scammers stick a tiny device, called a ‘skimmer’, onto card readers at ATMs, petrol pumps or shop tills. Skimmers then copy your card info without you noticing.
How to protect yourself:
Check the card reader: before you put your card in, give the reader a little wiggle or look out for anything that seems loose or odd. Skimmers are usually stuck right over the real card slot.
Cover your PIN: always hide the keypad with your hand when you type your PIN, even if you think no one’s looking.
Sending fake emails, texts and calls
Known as ‘social engineering’, this is when scammers use psychological tricks to get you to hand over your information. They might send fake emails (phishing), make dodgy phone calls (vishing), or send suspicious texts (smishing). Often, they pretend to be your bank, HMRC, the police or another company you trust – all so you let your guard down.
How to protect yourself:
Be wary of unexpected requests: real banks will never ask for your PIN, password or the 3-digit security code on your card.
Double-check before you act: if you get a call or message that feels off, hang up or delete it. If you’re worried, contact the company yourself using a number or email you know is legit – like the one listed on their website or your bank statement. At Monzo, we have a Call Status feature, which lets you confirm if it’s really us you’re speaking to on the phone – it helps customers report on average over 700 fraud attempts each month! We’re also covered by the 159 hotline – an emergency number you can call to report financial scams. When you ring 159, they’ll ask for the name of your bank and connect you to them.
Take your time: scammers want you to rush, but you should always pause and think before you act. It might feel awkward or time-consuming to question things, but you’ll always be glad you did if something turns out to be a scam. So try to trust your gut; if something feels off, it probably is.
Data breaches
Data breaches happen when hackers break into a company’s systems and steal sensitive information like your name, address, date of birth and credit card details. Once they’ve got all this information, they can use it to steal your money.
How to protect yourself:
Use strong, unique passwords: make sure your passwords are hard to guess and different for every account. A password manager can make this easier.
Turn on two-factor authentication (2FA): if a service offers it, switch on 2FA. It means even if someone guesses your password, they’ll still need a code sent to your phone to get in.
Keep an eye on breach alerts: sign up for alerts that tell you if your details have appeared in a data breach. That way, you can act fast if something looks wrong.
Physical theft
This is when someone steals your actual credit card or watches closely enough to see your card details. It can happen through pickpocketing, theft from your home or car, or just someone looking over your shoulder while you pay.
How to protect yourself:
Keep your card close: always know where your card is. When you’re out, stash it somewhere safe like a zipped pocket or a secure bag.
Look after your card details: don’t say your card number or security code out loud in public. And if you’re buying something online, try to go somewhere secure and private. With a Monzo plan, you can also create virtual cards for added security. A virtual card keeps your main card details hidden – even if a company you’ve shopped with has a data breach, or you used an unsecured website. So if the virtual card details are ever compromised, your main account won’t be affected.
Check your cards often: make it a habit to quickly check that you have all your cards after making a payment.
If you think you’ve been scammed, you can use Citizen Advice’s online tool. It’ll ask you questions and use your answers to give advice on how to check whether something’s a scam, and what to do if you've been scammed.
Other ways to protect yourself from credit card fraud
Being proactive is always better than being reactive. Here are some measures to put in place to make it harder for thieves and scammers to catch you out in the first place:
📲 Check your transactions in real-time
Some banking apps, like Monzo, let you set up instant alerts for every transaction – so you can spot anything unusual straight away.
👀 Keep an eye on your statements
Real-time alerts are great, but it’s still a good idea to regularly check your bank and credit card statements. Keep an eye out for anything unfamiliar – remember, scammers often start with tiny transactions to see if your card is active before going on to make bigger splurges.
💳 Use your card’s security features
With Monzo, you take control of your card’s security in the app. If you lose your card or spot something strange, you can freeze it in a few taps to stop any more spending. And if you find it later, just unfreeze it – no fuss or waiting around.
🔒 Only buy from trusted merchants
Try to buy from shops and companies you know and trust, and only use merchants with a trusted website (look out for the padlock in the website’s address bar) to prevent your card details from being stolen. And if you’re shopping on social sites, don’t pay or message sellers outside of the platform.
📶 Be careful when using public Wi-Fi
Try not to use public Wi-Fi for online shopping or logging into your bank accounts. These networks aren’t always secure, so scammers might be able to steal your info.
🗑️ Shred sensitive documents
When you’re getting rid of bank statements, letters or anything with your personal details on it, always shred it first.
You might think you’d never fall for credit card fraud. But it’s this perception, as well as the sophisticated tactics scammers use, that helped make fraud the most commonly reported crime in 2024. So remember, keep an eye on your accounts, keep your details safe, and always take your time.
Questions? Answers.
What are the first signs of credit card fraud?
Usually, it starts with small transactions on your statements that you don’t recognise. Later, you might get calls or letters from debt collectors about accounts you never opened, or alerts from your bank about strange activity.
How do I report credit card fraud?
Get in touch with your bank or credit card provider straight away. If you're with Monzo, you can report scams directly in the app. In England, Wales, or Northern Ireland, you can also report fraud to Action Fraud online or call 0300 123 2040. In Scotland, report directly to Police Scotland.
What should I do if I’m a victim of credit card fraud?
Contact your bank or card provider straight away and let them know about any suspicious transactions. It’s also a good idea to update your passwords on any accounts that might be at risk.
UK residents only. Ts&Cs apply.