This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

Credit card fraud added up to $246 million last year, rising 12% from the prior year. As scammers come up with new ways to get sensitive credit card information and prey upon consumers, it can be a smart move to acquaint yourself with tactics they commonly use, from phishing scams to credit card reader scams to threats of arrest.

Read on to learn about 10 of the most popular techniques and find out what to do if you do end up getting scammed.

What Are Credit Card Scams?

A credit card scam is when an unauthorized individual uses your credit card to make fraudulent purchases or steal money from the account. While some credit card scams will take your credit card information right out from under you, others use strategies to entice you to hand over your information.

Given what a credit card is and how easy they are to use, it can be easy for a scammer to rack up debt under the cardholder’s name.

Common Scams and How to Avoid Them

Becoming familiar with the top credit card scams can increase your awareness and help you better protect your identity from fraud. Here are some of the most common credit card scams to look out for. (As you’ll see, some can involve debit cards as well.)

1. Overcharge Scams

With an overcharge scam, you’ll receive an email, call, or text stating that a retailer or merchant overcharged your card. The scammer will request your personal information to complete a refund for the overcharge. They will then use this information to gain access to your credit card.

Here’s how these scams can work:

•   Usually, the scammer identifies a product or service that you already use, so it may not seem as suspicious when they request this information. But, the fraudster may also use a standard service that many people use, such as Netflix or Spotify, so that it won’t raise red flags.

•   While it’s always good to scrutinize your incoming calls, it’s especially important to do so when you receive a call from an unidentified number, though scammers are getting more sophisticated at spoofing phone numbers and making it seem as if they are calling from legitimate businesses.

•   If you answer, the caller may tell you that you must take immediate action to get a refund, or that it’s your last chance to do so. The urgency should be an immediate sign something is amiss; that’s a common scam warning sign.

•   Also, if you do get a call from, say, Netflix saying your account is suspended, it can be wise to hang up and contact the business directly to see if there’s an issue with your account.

•   If you receive a suspicious email, compare the email to past emails from the merchant or retailer. Scammers are often good at disguising a false email address, so look carefully for differences in the sender’s address. They may add “pay” or “support” to make the address look legitimate.

•   You may also find subtle or major misspellings and incorrect grammar in the email.

The best way to avoid this potential credit card scam is to either hang up the call or exit the email. Again, if the call says it’s from your credit card issuer, you can call them directly to see if this request was legitimate or a scam. You can find your creditor’s number on the back of your credit card or credit card statement.

2. Interest Rate Scams

One of the most common credit card scams that occurs over the phone is a fraudster calling to tell you that they can reduce your credit card interest rate and potentially save you significant money on interest payments. They will typically state that their company has a relationship with your credit card company; therefore, they can negotiate reduced interest payments.

However, to entice you to act now, they’ll say the offer is only available for a limited time. Then, the scammer will request your credit card information, such as your account number and CVV number on a credit card, for the alleged service.

Legitimate debt relief companies seldomly cold call consumers to get their business. Also, they cannot charge a fee upfront until they reduce your interest rate or settle a portion of your debt. Therefore, this kind of call should set off alarm bells.

If you want to reduce your interest rate, contact your credit company directly. As the cardholder, you have a better chance of reducing your rate than a third-party company with no relationship with the creditor. If you do receive this call, simply ignore it like you would other credit card scams.

3. Gas Station Credit Card Scams

Scammers can use credit card skimmers to lift your credit card information at gas stations. They do so by attaching an external device to the credit card machine at a pump. When you swipe your card, the device can save your information instantly.

So, before you swipe your card, check to see if the credit card reader you’re using at the pump looks the same as all the other ones. If it doesn’t, that can be a tipoff. You also can tug at the reader to see if it easily detaches. Since skimmers are temporary, they’re usually only attached with double-sided tape, making them easy to remove. Don’t insert your card if you can remove the skimmer with little effort. Instead, go to another gas station to get your gas.

Make sure to inform authorities about the skimmers so they can handle it accordingly.

4. Prepaid Credit Card Scams

Prepaid credit cards, also known as prepaid debit cards, allow you to load money onto them and make purchases. When prepaid credit card funds are depleted, you can no longer use them (unlike credit cards, there is no credit card limit for prepaid cards). You can usually purchase prepaid credit cards at retail stores or online.

Scammers use prepaid credit cards in many different ways to take your money. For example, a scammer may call and say you won the lottery. However, to get your winnings, you must pay the taxes. They may tell you that you can do so by loading a prepaid credit card with a certain amount of funds and sending the card number to the caller. After this is done, they promise to send you your winnings — but, in this case, the scammer may take the card money and never be seen again.

If someone is requesting a prepaid credit card, that’s a red flag. It’s best not to proceed with this transaction as it may be a prepaid credit card scam.

5. Hotel Front-Desk Credit Card Scams

This scam takes place in a hotel room, where the scammer will call up stating they are a hotel employee. They will inform you that there is an issue with your credit card, and you must verify your credit card information. Usually, these calls take place early in the morning or late at night so that you will be thrown off guard.

If this happens to you, it’s best to handle the matter in person. You can hang up and then visit the front desk to ensure your credit information isn’t exposed to the wrong person.

6. Arrest Phone Call Scams

The objective of this scam is to convince you to give out your personal credit card information to pay off a debt, fine, penalty, or ticket. While arrest scams may seem unrealistic, the scammer relies on scare tactics to try to get the target to hand over their credit card information. They may target seniors with this scam.

Some points to know:

•   Usually, the scammer claims they are from a federal agency like the IRS, FBI, or other government agency that suggests there’s a connection to law enforcement.

•   Then, they threaten that if this bill, fee, or ticket goes unpaid, you will be arrested, or other legal action will be taken immediately.

•   It’s doubtful that actual law enforcement or federal agencies would request sensitive information during a phone call, especially an abrupt one.

•   Another sign that this is a scam is that the call may sound like a robot or like it’s pre-recorded.

•   The caller may also have a sense of urgency, claiming authorities are on their way to arrest you.

•   Even if you do owe outstanding fees, have a ticket, or were a part of some similar activity recently, authorities or federal agencies wouldn’t request payment information over the phone in this manner.

Don’t share any personal information with the caller. Just like with other scams, the best way to address your concerns is to hang up and call the alleged agency directly to get any information straight from the source.

Charity Scams

When nonprofit organizations ask for donations, it may pull at your heartstrings. But scammers can use this strategy to swipe your credit card information right out from under you.

Scammers who use this strategy usually call you pretending to be a part of a nonprofit or other charitable organization. They will then request donations using everyday anecdotes or narratives designed to influence their targets. It’s also common for scammers to use this tactic when a natural disaster strikes or another current event requires aid.

Although it’s common for nonprofits to solicit donations over the phone, you should still be wary when receiving one of these calls. If you want to donate to the organization, jot down information from the caller, such as their phone number and the name of the charity. Then, you can look up the phone number online to determine if it’s already identified as a scam.

If it isn’t, you can visit the IRS’s Tax Exempt Organization Search and CharityNavigator.org to research the organization to determine its legitimacy.

Overall, it’s wise to avoid donating to unsolicited callers. Instead, consider visiting an organization’s actual website to determine the best way to donate.

8. Hotspot Scams

Whether you’re connecting to a public WiFi hotspot via your phone or on your computer, scammers can try to access your credit card information when you sign on. In fact, they may prompt you to enter your credit card information to access a particular hotspot. Given how credit cards work, this is very risky. This can mean the scammer gets access to your card’s credentials.

So, when attempting to access the internet in public, be wary if you’re asked to enter your credit card information. Instead, if you’re at a restaurant or retail location, ask an employee to share the establishment’s hotspot or wifi information. Check that the connection is secure. This way, you’ll know you’re not exposing yourself to credit card fraud. But remember, it’s always wise to avoid conducting financial business on public WiFi.

9. Skimming Scams

Like gas pump skimmers, scammers can also use skimmers at ATMs to obtain credit card information.

The only way to identify a skimmer is by checking the scanning device. For example, if the card reader easily detaches, it’s likely a card skimmer. In addition, you can spot other things to identify a skimmer, such as graphics that don’t align or colors on the machine that don’t match the reader. Another clue is if the keypad seems cheap or too thick.

Before entering your card into a reader, investigate for a skimmer. Familiar places skimmers hide are usually in high-traffic areas (a mall or a sports stadium, say) or tourist locations. Don’t use your credit card if you’re unsure whether a skimmer is present or have a feeling something may be off, potentially indicating a credit card reader scam.

10. Phishing Scams

Like the name suggests, a phishing scam involves fraudsters phishing for your personal information. Scammers contact their targets through the phone or over email, posing as an honest company. They then provide fraudulent links or instructions to help them access your personal credit card information.

For example:

•   The scammer may impersonate your credit card company (simply saying they are “calling from your bank and there’s a problem”) and state that your account details must be updated due to a compromised card.

•   They will request your card information (your credit card number, expiration date, and CVV code) over the phone or email to resolve this issue.

•   The scammer may request the answers to your security questions for protection purposes.

Don’t provide any of this information. Even if they suggest this is a sensitive matter and must be addressed immediately, it’s best to hang up, and call your credit card company right away.

Recommended: Common Reasons Why Credit Cards Get Declined

How to Protect Yourself From Credit Card Scams

To keep your credit card information safe, here are some steps you can take:

•   Select a credit card with 0% liability on unauthorized purchases. The Fair Credit Billing Act (FCBA) limits your financial responsibility for credit card fraud to up to $50. In other words, you will only have to pay $50 if you’re a victim of one of these credit card scams and request a credit card chargeback. However, some credit card companies offer 0% liability as a perk, which means you aren’t responsible for any fraud.

•   Keep tabs on your credit card activity. Regularly looking at your credit card activity and checking your credit card balance can help you spot any suspicious activity. If you do notice anything, contact your credit card company right away.

•   Request transaction alerts. Usually, credit card companies let you sign up for transaction alerts, such as for balance transfers, large purchases, and international purchases. Using alerts is a great way to monitor your card activity.

•   Ensure your information is secure. When making purchases online, over the phone, or in person, ensure your information is secure. For example, only use sites with “https” in the URL when shopping online. Also, avoid using public WiFi where your personal information may be in jeopardy.

What To Do If You’re a Victim of Credit Card Scam: Reporting Credit Card Scams

If you’re a victim of a credit card scam, follow these steps:

•   First contact your credit card company to let them know about the fraud. Per the Fair Credit Billing Act, you have 60 days after receiving your billing statement to report any fraudulent activity on your card.

•   After informing your creditor of the incident, make sure to change your password for your account.

•   You may also want to contact the three major credit bureaus: Equifax, Experian, and TransUnion. Request verification of your identity, and ask for a fraud alert to get linked to your report.

•   Additionally, if you’re a credit card scam victim, you can contact the Federal Trade Commission (FTC) to report the crime. You can report your incident online or over the phone at 1-877-382-4357 (FTC-HELP).

•   If you’ve discovered a fraudulent website, email or another internet scam, report it to the Internet Crime Complaint Center (IC3).

•   Unfortunately, not all scams originate in the US; if you believe you’re a victim of an international scam, report it through econsumer.gov.

All reports help consumer protection agencies pinpoint trends and prevent other consumers from falling victim to credit card scams.

The Takeaway

Unfortunately, it can be easy to become a victim of credit card scams. But, if you monitor your account, set fraud alerts, and keep your information confidential, you’ll have a better chance of avoiding getting duped. Pay attention to what kinds of protection your credit card issuer may offer, too.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Who is liable for a credit card scam?

Under the Fair Credit Billing Act (FCBA), you’re only liable for up to $50 of credit card fraud reported within 60 days. However, if your credit card has 0% fraud liability protection, you may not be liable for any fraudulent charges.

What counts as credit card fraud?

When an unauthorized person makes a charge with your credit card or steals your card information, it is considered credit card fraud.

How do I report credit card fraud?

Contact your credit card issuer ASAP. Then go to the Federal Trade Commission’s website to report the incident. Law enforcement agencies will then use these reports to investigate criminal activity to prevent future fraud. Once you submit a report, you can follow up with local law enforcement, if your creditors suggest it’s wise to do so.

Photo credit: iStock/fizkes

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SoFi does not currently offer all the products and services in this article. Our content covers a variety of financial topics for educational purposes only.

Consumers often use cashier’s checks for larger purchases because they offer the recipient of the funds extra security. That’s because cashier’s checks are guaranteed by a bank, rather than the purchaser.

Unfortunately, printing technology has improved over recent decades, making it easier for scammers to print fraudulent cashier’s checks at home and trick unsuspecting consumers into accepting them as legitimate forms of payment. Knowing how to spot a fake cashier’s check is crucial to avoiding these scams.

Learn how cashier’s checks work, common scams using them, and how to protect yourself.

At this time, SoFi does not offer cashier’s checks.

What Is a Cashier’s Check?

A cashier’s check is a check issued and guaranteed by a bank or credit union. This typically instills confidence in the recipient that the check won’t bounce when they deposit it at their own financial institution. They are common in real estate transactions and when making large purchases.

When you deposit a cashier’s check in your checking account, the money usually clears faster than a traditional personal check. Cashier’s checks can be more secure because they are more challenging to forge — though it’s not impossible.

Recommended: Certified Check vs. Cashier’s Check

How Do Cashier’s Checks Work?

Cashier’s checks are like a prepaid check. If you need to pay someone with a cashier’s check, you can go to your bank to purchase one. The money will immediately leave your account, and you can give the cashier’s check to the person or business as payment. When they deposit the cashier’s check, your bank will release the funds to cover the cost.

•   If you don’t have a bank, you may still be able to get a cashier’s check from a financial institution. Rather than withdraw the funds from your account, the bank would instead require that you pay cash to have a cashier’s check issued.

•   Cashier’s checks are usually not free. On top of the amount to be paid with the check, banks usually charge around $8 to $15 to issue a cashier’s check.

4 Common Cashier’s Check Scams

Just as there are many types of bank fraud in general, cashier’s check scams run the gamut, but most follow a similar structure. Typically, a fraudster will give you a fake cashier’s check that looks real, and they’ll ask you to deposit it and then send some money back to them. Afterward, the bank will discover that the original cashier’s check was fake — and you’ll owe all the money back, including the amount you sent to the scammer.

Here are the specifics on a few common scams to watch out for:

Employment Scams

Two popular employment scams include fake cashier’s checks:

•   Mystery shopper scam: In this scam, the fraudster will hire people to report on the quality of various money transfer businesses as mystery shoppers. As part of the assessment, the victim of the scam will receive a cashier’s check to deposit at a local bank, then send the money back to the employer through a money transfer service (say, a wire transfer) to evaluate the service. After sending the cash back to the fake employer, the victim will learn from the bank that the cashier’s check was fraudulent. Instead, the funds sent to the scammer came out of the “real” funds in their bank account.

•   Work-from-home scam: Another employment scam involves hiring remote employees and sending them an overpayment. The supposed employer might send a starting bonus via cashier’s check. The fake employer just asks that new employees pay an account activation fee to cover the cost. If successful, the scammer will receive the funds for this fee before the victim realizes the cashier’s check is fake.

In addition, some remote work scams may be overpayment scans, described below.

Windfall Scams

Windfall scams are common and often involve a cashier’s check. In a popular scheme, scammers will lead victims to believe they’ve won the lottery (usually a foreign lottery); in others, victims will learn they’ve received an inheritance.

To claim the earnings, however, the victim must pay taxes and fees. They’ll cash the fake cashier’s check they have been sent and wire money to the scammer before learning that the cashier’s check was fake. You’ll then have to repay the bank — and be out the money you paid the fraudster.

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Purchase and Overpayment Scams

The overpayment scam is a common type of cashier’s check fraud. If you sell a product to someone online, like through an online auction or marketplace (eBay, Craigslist, Facebook Marketplace), the scammer may send you a cashier’s check for more than the purchase price.

When you point this out to the scammer, they’ll apologize, say they made a mistake, and ask you to send the difference back to them. After you send them some money, you’ll discover that the original cashier’s check was fake — so you’ll have lost money as well as the product you’re selling.

In other cases, the buyer may give you a cashier’s check for the right amount. You’ll ship them the product, only to later discover the check was fake. While you aren’t out any money, you’re still out the product.

Overpayment scams may also take the form of remote work scenarios. You will be sent a check and then be asked to forward a portion of it to another party as part of your “new job.” Alas, if you do so, you could discover the check was a fake and the money you forwarded is now lost.

Property Rental Scams

If you are a landlord renting out a property, be wary of cashier’s checks. In some cases, scammers may offer to pay the first and last months’ rent payment plus the security deposit without ever seeing the property — often because they claim they are moving for a new job and need a place fast.

They’ll send you the money via cashier’s check, then back out of the rental, saying the job fell through. The scammer will offer to let you keep the security deposit but ask if you’d be willing to wire any of the prepaid rent back. Only after sending the money will you realize the scammer paid you with a fake cashier’s check.

Tips for Spotting Fake Cashier’s Checks

Wondering how to spot a fake cashier’s check? Here are a few tips:

•   Check the bank name: Some scammers utilize real banks’ names and information, which makes it harder to differentiate between a real and fake cashier’s check. But a dead giveaway is a cashier’s check with a fake bank name. A quick online search can help you identify a bogus name.

•   Check the postmark: If you received the check in the mail, the postmark city should match the city of the supposed bank.

•   Verify the amount: A cashier’s check for the incorrect amount could be the sign of a scam in the works, such as an overpayment ruse.

•   Look for security features: Real cashier’s checks use a combination of security features, like color-changing ink, security threads, and watermarks. While fake cashier’s checks might contain these as well, a check without these hallmarks is an obvious indication of a scam.

•   Check the payee name: If the payee’s name line is blank, you are probably in possession of a fake cashier’s check.

Recommended: How to Build Financial Security

Tips for Avoiding Cashier’s Check Scams

Knowing how to spot a fake cashier’s check can be helpful, but here are some tips for avoiding scenarios where you’d receive a fraudulent cashier’s check altogether:

•   Only accept cashier’s checks from people you know and trust.

•   Consider a traceable online payment system for doing business, instead of a cashier’s check.

•   Accept cashier’s checks only for the agreed-upon amount, never more.

•   Use your judgment: If someone is sending you money you weren’t expecting, especially if they’re a stranger, it’s likely too good to be true.

•   Don’t agree to send anyone money until you’ve verified with your bank that the cashier’s check has cleared and was free of fraud.

Verifying Cashier’s Checks

If you are accepting this kind of check, it’s important to learn to spot a real vs. fake cashier’s check and keep your eyes peeled for signs of fraud. A good way to avoid a cashier’s check scam can be to verify the check with the issuing bank. You can call or visit the bank in person, if there’s a branch nearby.

Just don’t use the phone number that might be printed on the questionable check, as it may go to the scammer. Instead, search for the bank online, find its legitimate website, and call the customer service number. Provide the check number, issue date, and amount — and the bank should be able to verify if the check is legitimate.

Do Victims of Cashier’s Check Fraud Have Any Recourse?

If you have already sent money to a scammer in an untraceable way, like via wire transfer, you may not be able to get your money back. Banks can deduct the amount of the fraudulent check from your account or require you to pay for the amount you withdrew using the fraudulent check. Some points to note:

•   You can report the fraud to the United States Postal Inspection Service (if the check came in the mail), your state or local consumer protection agencies, and the Internet Crime Complaint Center.

•   You can contact the bank whose name appeared on the fake cashier’s check, as well as the bank where you deposited the fake cashier’s check. Additionally, you’ll want to notify the platform on which you first encountered the scammer (for example, an apartment rental site or an online marketplace).

•   Submit a formal complaint to the Federal Trade Commission (FTC), and file a police report with the local police.

These steps may help you resolve the case and/or prevent the scammers from perpetuating more fraud.

Recommended: What Is an E-Check?

The Takeaway

Cashier’s checks are a legitimate form of payment often used in high-dollar transactions or to add a sense of confidence between buyers and sellers who don’t know each other. However, they can be easy for scammers to forge, so it’s important to stay alert when receiving a cashier’s check as payment. Knowing the difference between a real vs. fake cashier’s check can be an important skill in protecting your finances.

FAQ

How can I verify if a cashier’s check is real?

You can inspect a cashier’s check for obvious signs that it’s a fake, like a missing payee name, a fake bank name, and incorrect amounts. But if you’re dealing with a more sophisticated fake cashier’s check, your best bet is to find the bank online, call their customer service number, and ask them to confirm the check’s authenticity.

What happens if you deposit a fake cashier’s check?

Once the bank discovers that the cashier’s check you deposited was fake, they’ll deduct that amount from your account or seek repayment some other way. In instances where you’ve sent some money back to the scammer, you’ll be out that money. In instances where you sold goods to a scammer, you’ll unfortunately be unlikely to get the item back.

Can a bank tell if a cashier’s check is real?

Bank tellers may also have difficulty determining if a cashier’s check is fake or real. While they can spot the more obvious signs, more sophisticated scammers can slip fake cashier’s checks past bank tellers. Internally, banks eventually discover that the cashier’s check is fake (usually a couple of weeks later when it’s returned unpaid), long after the fraudster has gotten away with their scam.

Photo credit: iStock/Richard Stephen

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This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

Judging from the latest statistics, the most lucrative work-from-home job in America may be Con Artist. Fraudsters are utilizing texts, social media, fake websites, apps, emails, and old-fashioned voice calls to separate Americans from their money — billions every year. They play on our greed, or charity, or desperation. And they take all forms of payment.

The best way to fight back against fraud is to be aware of current schemes so you don’t fall victim in the first place. Below we share the top financial shakedowns, with enough details to help you recognize red flags, and statistics that will blow your mind. Read on to learn how to avoid getting fleeced (and how to report it if you are).

Identity Theft and Credit Card Fraud Trends

If you’ve been the victim of identity theft or credit card fraud, you’re hardly alone.

According to the Federal Trade Commission (FTC), there were 552,000 reported cases of identity theft through the first half of 2024. At this rate, the year is on track to surpass the number of reported cases in 2023.

Meanwhile, there were 214,607 reported cases of credit card fraud by mid-year, up 6% from the previous six months. The impact of both crimes can be substantial. In 2023 alone, some 2.6 million consumers collectively lost more than $10 billion to fraud — a 14% increase from 2022.

There are several potential reasons for the surge. More people are turning to digital tools to handle everyday tasks, like shopping and banking. At the same time, scam email messages — no, that’s not the U.S. Post Office — have also spiked in recent years. And finally, the rise of crypto seems to play a role: The FTC has warned consumers that no reputable utility or creditor will demand payment only in crypto.

If you’re a victim of credit card fraud, it’s important to report it ASAP. You can get your credit report and find out your credit score for free at AnnualCreditReport.com®.

You can also enlist the help of a money tracker app, which allows you to manage all of your finances from one convenient dashboard.

Recommended: What Credit Score Is Needed to Buy a Car?

33 Identity Theft and Credit Card Fraud Stats

Below we do a deep dive into the most common types of fraud: imposters, online shopping scams, fake prizes and sweepstakes, false job opportunities, fictional charities, investment swindles, and more. All numbers quoted below are from 2023 FTC data.

1 Imposters: Reports Filed

The total reports filed in this one category came to 853,935, with 21% of filers admitting losses. An imposter is a person who pretends to be someone else to steal your personal information or money. They might call, text, or email you and may pose as someone you know. (“I’m on vacation in London and lost my wallet! Can you send me some cash?”).

2 Imposters: Losses

The median loss suffered by victims was $800. The total dollar amount of imposter scam losses was $2.668 billion.

3 Imposters: Scenarios

The most common way imposters approached targets was via email, and victims often paid via credit card.

4 Imposters: Top States Affected

Oregon led with 2,640.7 reports per million people. Washington and Colorado followed close behind.

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5 Online Shopping: Reports Filed

Total reports filed came to 369,469, with 53% claiming losses. In an online shopping scam, someone pretends to have a legitimate business by creating a phony website or posting fake ads on a real retailer’s site.

(Another form of this fraud is when scammers create and post fake negative reviews of small businesses and then tell owners that they’ll remove the reviews in exchange for digital gift cards.)

6 Online Shopping: Losses

The median loss suffered by victims was $125. The total dollar amount of online shopping scam losses totaled $392 million.

7 Online Shopping: Scenarios

Victims are most often taken in by websites or apps — not surprising, given the nature of this fraud — and are asked to pay via gift card.

8 Online Shopping: Top States Affected

Delaware led with 1,183.4 reports. New Hampshire and Colorado placed second and third.

9 Prizes & Sweepstakes: Reports Filed

Total reports filed came to 157,520, with 13% reporting losses. “Great news!,” a voice over the phone gushes. “You’ve won money or valuable prizes!” All the winner needs to do is provide their bank account information or pay a processing fee.

10 Prizes & Sweepstakes: Losses

The median loss suffered by victims was $878. Total losses equaled $338 million.

11 Prizes & Sweepstakes: Scenarios

Phone calls, texts, and emails are the most common contact method. Gift cards were of the top payment types.

12 Prizes & Sweepstakes: Top States Affected

West Virginia topped the list with 781.2 reports. Delaware and Alabama placed and showed.

13 Internet Services: Reports Filed

Total reports filed equaled 125,118, with 7% admitting losses. This category includes the use of fake messages or copycat sites — ostensibly from someone’s internet service provider — as part of a phishing or spoofing scam used to commit identity theft. It also includes theft of personal information: debit card PINs, credit card and bank account numbers, and passwords.

14 Internet Services: Losses

The median loss suffered was $250. Total losses came to $36 million.

15 Internet Services: Scenarios

Typically, individuals are contacted via social media and send money via payment app.

16 Internet Services: Top States Affected

Delaware was first in line with 418.6 reports per million people. Nevada and Florida came close on its heels.

17 Job Opportunities: Reports Filed

Total reports filed were 110,364, with 32% reporting a loss. Scammers post genuine-looking want ads and business opportunities in print and online. The catch? There is no job. They just want your personal information and your money. As just one example, a “work-from-home career” starts after the target pays for training, certifications, and/or starter kits.

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18 Job Opportunities: Losses

Consumers experienced a median loss of $2,137. Total losses reached $491 million.

19 Job Opportunities: Scenarios

People are most often connected by text and pay the scammers via cryptocurrency.

20 Job Opportunities: Top States Affected

Nevada was again the top contender, with 408.3 reports per million people. Arizona and Georgia achieved second and third place.

21 Advance Payments: Reports Filed

Total reports came to 29,878, with 35% of them suffering a financial loss. Advance payments, as the name implies, refer to a consumer pre-paying for a service. Credit service businesses purport to sell information that will allow the consumer to create a new credit file — perhaps after an identity theft occurred.

22 Advance Payments: Losses

The median loss of each victim was $638. The total amount lost was $75 million.

23 Advance Payments: Scenarios

Fraudsters typically communicate with potential victims via websites and apps for this kind of scam, and request wire transfers to collect the money.

24 Advance Payments: Top States Affected

Mississippi is number one this time, with 152.3 reports per million people. Georgia and Florida follow as numbers two and three.

25 Fake Charities: Reports Files

Total reports came to 9,809, with 27% reporting a monetary loss. Scammers pretend to be from a real or fake charity and ask you to make a donation right then for, say, a natural disaster that just occurred.

26 Fake Charities: Losses

The median loss was $392. The total amount lost was $22.5 million. Asking people to support a heartwarming cause has, unfortunately, been quite successful.

27 Fake Charities: Scenarios

Messages go out via social media, and have the potential to go viral. Scammers most often collect their money through a payment app.

28 Fake Charities: Top States Affected

Alaska led the way with 38.0 reports per million people. Georgia and Nebraska came in second and third place.

29 Investments: Reports Filed

Total reports came to 107,699, with 75% claiming a financial loss. With investment fraud, a scammer tries to get you to invest: in stocks, bonds, real estate, whatever. They may provide false information about a real investment or make something up entirely.

30 Investments: Losses

The median loss was $7,768. Total losses equaled $4.642 billion.

31 Investments: Scenarios

These so-called investment opportunities are described on social media platforms, with cryptocurrency being the top payment method.

32 Investments: Top States Affected

Nevada (again!) leads the way, with 289.9 reports per million people. Florida and Arizona trail behind in terms of percentage of population, but are way ahead in absolute numbers: Washingtonians filed 1,074 reports; Californians, 5,349 reports.

33 Bonus Stat: Tax Prep

A missing refund is one sign that someone else may have filed a fake tax return in your name. Here’s more information about what to do when you don’t receive a tax refund.

The FTC notes that 5,949 reports about tax preparation fraud were filed in 2023, with 10% of people reporting a monetary loss. The total loss was $1.9 million with a median loss of $500.

How to Avoid Credit Card Fraud

As these numbers show, there are plenty of scammers out there. Here are some ways to protect yourself against money scammers:

•   Avoid using debit cards, which are directly connected to your bank account. Credit cards and payment apps tend to be safer. Check your banking and credit card statements regularly, watching for errors and suspicious charges.

•   If your bank offers free transaction alerts, sign up now. For example, you can get an alert whenever a large payment (you choose the number) hits your account. Find out more about different types of bank fraud.

•   If you get a call from a company asking for payment data or other personal information, hang up. If it’s a company you normally deal with, call them back directly to see if the call was genuine.

•   Use password protection on your smartphone and computer devices. Keep your browsers up-to-date, and use reputable anti-virus software downloaded from the app store (not an ad, email or website). Avoid using public WiFi.

•   Shop at reputable retailers only, including but not limited to the ones you use online. If you have questions about a store, check them out on the Better Business Bureau website.

•   When pumping gas or using an ATM, watch out for skimmers: devices that capture your account information for fraudulent purposes. If anything looks odd, let the establishment know.

•   Be cautious about clicking on links from unknown sources, checking to make sure that an email or text message really came from the place it claims and is a reputable organization.

•   Monitor your credit report and watch for inaccuracies. What qualifies as credit monitoring varies, so look for services that send alerts whenever something new hits your report. You may also be able to sign up for free credit monitoring.

How to Report Credit Card Fraud

The first step is to file a dispute with your credit card company. Then you can contact your police station or sheriff’s office. You can also report the fraud to your state’s attorney general (get their contact info from https://www.naag.org/find-my-ag/) You can also submit an online claim with the FTC at https://reportfraud.ftc.gov/#/

The Takeaway

Scammers are reaching out via text, social media, fake websites, apps, emails, and old-fashioned voice calls to separate you from your money. Their stories play on your greed, or charity, or desperation. And they take all forms of payment — but they especially like gift cards and crypto. By learning to recognize the top schemes, you can help protect yourself from getting swindled. More pro tips: Monitor your transactions, avoid using debit cards for purchases, and don’t ever give out your personal or financial info unless you’re 100% sure of who you’re dealing with.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.

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FAQ

What are some common credit card scams?

Scammers can be pretty creative. Phishing is when a con artist tries to get you to share personal info or credit card information on the phone, by email, or text. Fake online websites can be built to steal credit card info. Skimmers can be set up on ATMs and credit card readers. And people with ill intent can monitor public WiFi for credit card info. And these are just some of the types of financial fraud out there.

How do credit card scams happen?

Sometimes, your physical credit card can be stolen. More often, someone gets your credit card data without having the actual card. Identity thieves can also steal personal information, set up credit cards in your name, and start spending.

How can you spot credit card fraud?

As you monitor bank statements, credit card statements, and your credit report, you may spot information that just isn’t right. Although this isn’t always because of credit card fraud, that’s a common cause. Proactively investigate when something looks suspicious. You can also set up alerts with your bank to flag certain kinds of transactions.

Photo credit: iStock/SaskiaAcht

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This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

It’s never a good feeling to look at your credit card statement and wonder, “What is this charge on my credit card?” When it comes to fraudulent credit card charges, your bank has often got your back. They have methods for spotting activity that isn’t normal, and they’ll usually alert you when a charge seems suspicious.

That said, your bank might not catch everything, and there may be a charge that’s valid but the amount is incorrect. So it’s important that you, too, keep an eye on your credit card statement to catch these errors and report anything that’s amiss immediately.

Here’s what to watch out for and tips for handling a dispute.

What Are Fraudulent Credit Card Charges?

Credit card fraud can happen if someone steals your card or the information on your card, or hacks into your account. Someone could do so by stealing your physical card, skimming your card information at a credit card terminal, through phishing scams via text or email, or by stealing your mail. Fraudsters then use the information they’ve stolen to make unauthorized purchases on your credit card.

Most cards offer zero liability on fraudulent charges, meaning you won’t be responsible for covering charges you didn’t authorize. This is an important feature of how credit cards work. However, it’s important that you catch fraudulent charges early so you can report them quickly and minimize your liability.

Recommended: Tips for Using a Credit Card Responsibly

Detecting Unauthorized Credit Card Charges Early

The key to spotting unauthorized charges on your credit card is remaining vigilant and always checking your credit card statement each month. When you receive your statement, follow these steps:

•   Review statements immediately. Avoid letting a few months of credit card statements accumulate before checking them. Whether you look them over online or via hard copy, do so ASAP so you can catch errors and head off fraud as quickly as possible. Going through your statements regularly will also offer a clearer understanding of how credit card payments work.

•   Check every purchase. Fraudsters know that small unauthorized credit card charges are less likely to get flagged. Go down the list of purchases you’ve made on your card over the last month and make sure you recognize the merchant and can match the sale with an item or service you bought.

•   Keep receipts. Hang on to receipts from credit card purchases so you can match them up to the items in your statement. This can also help if you’re unsure of how to identify a credit card transaction.

Fraudulent Credit Card Charges vs Billing Errors

Fraudulent charges are a result of theft. However, sometimes you may be charged for something that was due to a billing error. For example, perhaps you were charged twice for an item, or you were charged for goods or services that you never received.

Other billing errors could include:

•   Unauthorized charges, for which federal law limits your liability to $50

•   Charges that list the wrong date or amount

•   Errors in math

•   Charges for goods or services that you didn’t accept or weren’t delivered as agreed

•   Failure to post payments or credits, such as after you’ve returned an item.

You can correct these errors using procedures laid out by the Fair Credit Billing Act (FCBA). If a charge is found to be made in error, your credit card company will carry out a credit card chargeback, reversing the charges.

Reporting Unauthorized Credit Card Charges

Procedures for reporting fraud and billing errors are slightly different.

If you suspect fraud, you’ll take the following steps:

•   Contact your card issuer immediately. Tell them you suspect that you’ve been a victim of fraud. Your issuer can then investigate the charge.

•   Ask for your accounts to be suspended or closed, and ask to be issued a new card. Change passwords and personal identification numbers (PINs) on your accounts.

•   File an identity theft report with the Federal Trade Commission (FTC). You can do so at Identitytheft.gov .

•   Contact the three credit reporting bureaus, Equifax^®, Experian^®, and TransUnion^®. Confirm your identity with them and check your credit reports for any other fraudulent activities. Consider having a fraud alert connected to your accounts.

If you’re disputing a billing error, first call your credit card company and alert them to the error. The credit card company will investigate. If they find there was an error, your account will be corrected, and you will not pay credit card purchase interest charges on the amount for which you were billed.

In addition, send your credit card company written notification of an error. Use FBCA procedures to dispute the credit card charges, including the following steps:

•   Contact the creditor at the address they provide for billing inquiries. This address may be different from the one to which you send payments. Include your name, address, and account number, as well as a description of the billing error you’ve spotted. You may be able to proceed online or by phone as well as through the mail. The FTC provides a sample letter that you can use as part of the process.

•   Include copies of receipts and other supporting documents.

•   Be sure to mail your letter within 60 days of the first bill you received that contained the error.

•   Send the letter by certified mail and ask for a receipt so you can be sure your creditor received it.

•   Keep a copy of the dispute letter.

How to Read Your Credit Card Statement

It’s important to get familiar with how to read your credit card statement. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) requires that each of your credit card statements includes certain pieces of information.

•   First, there should be a section that includes your account information. This is where you’ll find your name, account number, and the date of the billing cycle.

•   Next, the account summary is an overview of transaction information on your card. This section will include the payment due date, any payments or credits that have been applied to the account, any fees that have been charged to you, and the total amount of your account balance.

•   Following this summary is a detailed account of the purchases you’ve made over the billing period. Each line item will include the vendor name, the date the purchase was made, the category (such as “groceries”), and the amount that was charged to your card. Go through this section carefully as you look for fraudulent charges or charges in error. This is how to find who charged your credit card.

•   Your statement will include other sections that detail payment information, interest or credit card finance charges, rewards, and account fine print.

Credit Card Security and Fraud Protection

When you apply for a credit card, carefully look at the security measures the card issuer has in place. Credit cards, such as the credit card offered by SoFi, can have a variety of measures to keep your information safe and protected from fraud.

Fraud protection limits your responsibility and liability for fraudulent charges. Many banks offer $0 liability. The FCBA limits liability to $50 for card-present fraudulent charges, and $0 if the card is not present, such as for online charges made with stolen credit card information.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

The Takeaway

Fraudulent charges or billing errors can be an unfortunate part of having a credit card. Your bank may catch them, but it’s also important to be proactive and keep an eye out for fraud and errors on your credit card statement. Bringing them to the attention of your credit card company will help you get the issue sorted faster and head off potential future fraud.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How do I file a fraudulent charge claim with my credit card company?

If you spot a fraudulent charge on your credit card statement, call your card company immediately and ask them to investigate. They can guide you through the process of disputing the charge.

How do I find out where a charge came from?

You can see where a charge was made in the detailed purchase information provided on your credit card statement.

How do I look up a charge from my credit card statement?

If you’re unsure about a charge on your credit card statement, call your credit card company, which may be able to do a credit card charge lookup by the merchant.

Photo credit: iStock/Pekic

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