Credit card fraud has been on the rise in recent years. The Federal Trade Commission’s most recent database indicates that 416,582 cases of credit card fraud were reported in 2024, making it one of the most common forms of identity theft. You know you’ve been a victim of this fraud when you notice unauthorized transactions on your credit card bill. These transactions are usually below $100 to avoid detection. However, sometimes they can exceed $1,000. One such incident happened with Martin from Martinsville, VA, when he was randomly charged $1,095 in Hong Kong.
Hello, I recently received a fraud alert from my credit card company that said that there was a $1095 charge on my credit card in Hong Kong. I use my iPad & Safari browser to buy online. Can you please explain how this could happen? By the way my credit card company canceled my credit card & will send me a new Mastercard in the mail & I’m not responsible for the charges on my credit card. What can I do in the future to prevent this from happening again?
I’m sorry to hear about the fraudulent charge on your credit card, Martin. It’s good that your credit card company is handling it and that you’re not responsible for the charges. For future reference, I’ll be discussing how this could have happened and how to stay safe.
How credit card fraud happens
Credit card fraud can happen in several ways, often without you even realizing it. One common method is when fraudsters get hold of your card information through data breaches at online stores or banks, which means your details get leaked without your knowledge.
Another sneaky tactic is phishing, where scammers trick you into giving away your card info by posing as legitimate companies via emails or fake websites.
There’s also the risk of “card skimming,” where devices at ATMs or gas stations secretly capture your card details when you swipe it. In some cases, fraudsters might also exploit weak security on public Wi-Fi networks or compromised apps to access your information while you’re shopping online.
OUTSMART THE SCAMMERS: HOW THE SNEAKY CEO APPLE GIFT CARD SCAM ALMOST GOT ME
Credit card fraud is way too common
A report from Security.org reveals that 52 million Americans experienced credit card fraud in 2023, a figure even higher than the one reported by the FTC. With four out of five American adults owning at least one credit card, the report found that three in five cardholders have faced unauthorized charges — an estimated 128 million victims. Even more concerning, 75% of these victims reported having their credit card information stolen more than once.
The typical unauthorized transaction is around $100, which adds up to approximately $5 billion in criminal purchases each year. Interestingly, most unauthorized transactions involve credit cards that weren’t physically lost or stolen, highlighting the growing risks of online fraud and data breaches.
THE BEST BALANCE TRANSFER CREDIT CARDS 2025
The need for identity theft protection
Data breaches are one of the main ways credit card fraud happens. Hackers often get unauthorized access to sensitive information stored by businesses or institutions. When a retailer, financial institution, or online store experiences a data breach, the hackers usually go after the payment systems where customer credit card details are kept.
If these systems aren’t properly secured, hackers can grab things like credit card numbers, expiration dates, and sometimes even security codes. Once they have that info, they can either use it themselves or sell it to others.
But it’s not just credit card information at risk. Data breaches can also expose personal details like names, email addresses, and phone numbers. Scammers can then use this stolen info to launch phishing attacks, pretending to be trusted companies and tricking you into giving away more sensitive information.
This is why identity theft monitoring is so important. Identity Theft companies can monitor personal information like your Social Security Number (SSN), phone number, and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.
One of the best parts of my #1 pick is that they have identity theft insurance off up to 1 million dollars to cover losses and legal fees and a white glove fraud resolution team where a US-based case manager helps you recover any losses.
Exclusive CyberGuy deal: 66% off Ultra Annual Plans: Get the Identity Guard Ultra protection to protect your identity and credit for as little as $9.99/mo (lowest offered anywhere) for the first year.
See my tips and best picks on how to protect yourself from identity theft.
HOW TO FIGHT BACK AGAINST DEBIT CARD HACKERS WHO ARE AFTER YOUR MONEY
10 ways to protect yourself from credit card fraud
1) Notify your credit card issuer immediately: If you notice fraudulent charges on your credit card, start by calling the number on the back of your credit card. From there, you should get more detailed information on what to do next.
2) Monitor your statements regularly: One of the best ways to catch credit card fraud early is to keep an eye on your statements. Review your transactions regularly to spot any unfamiliar charges. The sooner you notice something suspicious, the quicker you can report it to your credit card company and prevent further damage.
3) Regularly check your credit report: In addition to monitoring your credit card statements, periodically review your credit report to catch any unauthorized accounts opened in your name.
4) Use strong, unique passwords: Always use strong, unique passwords for your online accounts, especially those that store payment details. Avoid using easily guessable information, and consider using a password manager to store and generate secure passwords. This reduces the chances of fraudsters accessing your accounts.
5) Use credit card alerts: Set up transaction alerts with your credit card company. This way, you’ll receive a notification via email or text for every transaction made with your card. If you receive an alert for a purchase you didn’t make, you can take immediate action to report it and prevent further charges.
6) Be Cautious with public Wi-Fi: Avoid making purchases or entering sensitive information when connected to public Wi-Fi networks, as they’re often not secure. If you need to make an online purchase while on the go, consider using a VPN (Virtual Private Network) to encrypt your connection and keep your credit card details safe from hackers. My top recommendations are Surfshark and ExpressVPN. Both are trusted VPN services that prioritize your privacy and security and are available on a wide range of platforms, including Mac, Windows, iOS, Android, and popular browsers.
Surfshark: Surfshark provides strong security features at an affordable price. Like ExpressVPN, Surfshark operates under a strict no-logs policy and uses advanced encryption to keep your data safe. One standout feature is Surfshark’s ability to support unlimited devices on a single account, making it ideal for families or users with multiple gadgets.
CYBERGUY DEALS:
- Save 81% now with CyberGuy’s exclusive offer – Get 3 extra months FREE with a 12-month plan. Try 30 days risk-free, for only $3.19 per month.
- Save 87% now with CyberGuy’s exclusive offer – Get 3 extra months FREE with a 24-month plan. Try 30 days risk-free, for only $2.19 per month.
ExpressVPN: ExpressVPN is known for its speed, reliability, and strong privacy features. It offers ultra-fast servers in 105 countries, supports P2P sharing, and allows up to 8 devices to connect simultaneously. Available on a wide range of devices, it features a simple setup that takes less than 2 minutes. ExpressVPN’s strict no-log policy ensures your data is never stored, and all servers run on RAM, so no user activity is saved. With 24/7 live customer support and a 30-day money-back guarantee, ExpressVPN is a top choice for privacy-conscious users.
CYBERGUY DEALS:
- Save 48% now with CyberGuy’s exclusive offer – you can get now up to 3 months FREE with a 12-month plan, for $6.67/month. Try 30 days risk-free.
- Save 61% now with CyberGuy’s exclusive offer – you can get now up to 4 months FREE with a 24-month plan, for $4.99/month. Try 30 days risk-free.
7) Don’t store credit card info on browsers and websites: Storing your credit card information on browsers or websites can make it convenient, but it also exposes you to a higher risk of fraud. If your browser or the website’s security gets compromised, hackers could gain access to your saved card details. To stay safe, avoid saving your credit card information and manually enter it each time you make a purchase. If a site offers to save your details for future use, think twice before accepting. It’s better to take the extra step to enter your information each time, ensuring your data stays secure.
8) Use EMV chip technology: When making in-person purchases, always use the chip reader instead of swiping your card. Chip technology provides an extra layer of security against fraud.
9) Be wary of phishing attempts and have strong antivirus software: Be cautious of unsolicited emails, texts, or phone calls asking for your credit card information. Legitimate companies typically don’t request sensitive information through these channels. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.
My top pick is TotalAV, and you can get a limited-time deal for CyberGuy readers: $19 your first year (80% off) for the TotalAV Antivirus Pro package.
10) Keep your card in sight: When using your card in restaurants or stores, try to keep it within view. This reduces the risk of someone copying your card details.
Kurt’s key takeaway
It’s clear that credit card fraud is more prevalent than ever, affecting millions of Americans each year. The good news is that there are effective steps to protect yourself from becoming a victim. By staying vigilant and employing best practices—like monitoring your statements and using strong passwords—you can significantly reduce your risk. Remember, awareness and proactive measures are your best defenses against credit card fraud.
Have you or someone you know ever experienced credit card fraud, and how did it impact you? Let us know in the comments below.
TO GET MORE OF MY SECURITY ALERTS, SUBSCRIBE TO MY FREE CYBERGUY REPORT NEWSLETTER
Copyright 2025 CyberGuy.com. All rights reserved. CyberGuy.com articles and content may contain affiliate links that earn a commission when purchases are made.