When it comes to credit card fraud, there are several different types. Below, we’ve reviewed five of the most common types.
CARD ALTERATION
Under New Jersey law, physically altering a credit card is considered to be a form of credit card fraud. Examples of this may include embossing false numbers on a card or adding a magnetic strip to a card to change its coding. Additionally, increasing the credit limit on a card without authorization of the cardholder is also interpreted as fraud.
CARD THEFT
Although this type of fraud seems fairly straightforward, the term “theft” may have a variety of meanings. New Jersey statutes recognize six different types of credit card theft:
- Taking a card without the owner’s consent
- Signing a credit card without authorization
- Receiving and accepting a lost, misplaced, or mistakenly delivered card
- Manufacturing a counterfeit card or modifying an existing card
- Buying or selling a card from an entity other than the issuer
- Accepting a credit card as security on a debt
In recent years, organized underground groups referred to as credit card forums have set up shop on the internet in order to sell and exchange stolen credit card information. In the state of New Jersey, if you possess more than two stolen credit cards, the law presumes you are guilty of credit card theft.
SKIMMING
This type of fraud is committed by using a small device in order to obtain another person’s credit card information. This device may be placed on the swipe mechanism of ATM’s or gas pumps. Workers of the retail and restaurant industry also have ample opportunity to steal credit card information by using handheld skimmers as they complete payment transactions.
ACCOUNT TAKEOVER
If you have been accused of taking over a credit card account, this means that you are believed to have obtained the account owner’s personal information in order to obtain a new credit card in the legal cardholder’s name by reporting a change in address or that the original card was lost, stolen, or misplaced.
FRAUDULENT APPLICATION
No matter how minimal or innocent it may seem, using false information and statements to obtain a line of credit is illegal. This means that applicants who use a false name or other inauthentic identifying pieces of information can be charged with credit card fraud. Likewise, being dishonest about your financial standings in hopes of obtaining a higher line of credit is also fraudulent.