How Often Do Credit Card Frauds Get Caught? Statistics Included - Harbourfront Technologies (2024)

Credit card fraud is a huge problem in the United States. In fact, it is estimated that $16 billion was lost to credit card fraud in 2017. That’s a lot of money. So, how often do credit card frauds get caught? Unfortunately, the answer is not very often. Less than 1% of all credit card fraud cases are actually solved by law enforcement. This means that if you are a victim of credit card fraud, your chances of getting your money back are pretty slim.

In this article, we will discuss credit card fraud and present statistics published in 2022.

What is credit card fraud and how does it work?

Credit card fraud is when someone uses your credit card to make unauthorized charges. This can happen if your credit card is stolen, or if someone gets your credit card information through a data breach. Once someone has your credit card information, they can use it to make purchases online or in person. In some cases, they may even be able to take out a cash advance from your credit card.

How often do credit card frauds get caught?

Unfortunately, the answer is not very often. Less than 1 percent of all credit card fraud cases are actually solved by law enforcement. This means that if you are a victim of credit card fraud, your chances of getting your money back are pretty slim. However, with the advancement of fraud detection algorithms using machine learning and artificial intelligence, the chances of getting caught are increasing.

The different types of credit card frauds

There are three main types of credit card fraud:

• Credit card theft – this is when someone steals your physical credit card.
• Credit card cloning – this is when someone copies your credit card information and uses it to make fraudulent purchases.
• Credit card skimming – this is when someone steals your credit card information by copying it from the magnetic stripe on your credit card.

How to prevent credit card fraud

There are a few things you can do to help prevent credit card fraud:

• Keep your credit card information safe – never share your credit card number with anyone, and make sure to keep your credit card information secure.
• Check your credit card statements regularly – this will help you spot any unauthorized charges quickly.
• Use a credit card with fraud protection – many credit cards offer fraud protection, which can help you get your money back if you are a victim of credit card fraud.

What to do if you think you’re a victim of credit card fraud?

The first thing you should do if you think you’ve been a victim of credit card fraud is to contact your credit card company. They will be able to help you dispute any unauthorized charges. You should also report the fraud to law enforcement. They may be able to track down the person who committed the fraud and get your money back.

Statistics published in 2022

In February 2022, the Federal Trade Commission published a detailed report on credit card statistics. Below is a summary of the report.

In 2017, there was a total of 2.93 million reports were filed against credit card fraud and the number seems to be increasing with each passing year.

In 2018, the number increased to 3.16 million, in 2019, it was 3.42 million, in 2020, it was 4.86 million and in 2021 it was 5.73 million. This is a clear indication that credit card frauds are on the rise and something needs to be done about it.

There are several ways in which these frauds are carried out, some of the most common ones include,

1. Identity theft

This is one of the most common ways in which credit card frauds are carried out. In this, the fraudster uses someone else’s identity to open a new credit card account in their name. They then use this credit card to make purchases and withdraw cash.

In 2021, 1.43 million+ reports were filed only under identity theft, which is equal to 25.01% of all the reports filed.

2. Imposter scams

In this type of scam, the fraudster pretends to be a legitimate business or person and tricks the victim into giving them their credit card details.

Imposter scams were the second most common type of credit card fraud, with 984k+ reports filed in 2021, which is equal to 17.16% of all the reports filed.

3. Credit Bureaus, Information Furnishers, and Report Users

There are three types of credit reporting agencies in the US, which are Experian, Equifax, and TransUnion. These agencies collect and maintain credit-related information of consumers.

Fraudsters may access these reports to get details about a person’s credit history and use this information to apply for a new credit card in their name. They may also use this information to open a new bank account or get a loan in the victim’s name.

592k+ reports were filed under this category, which is equal to 10.33% of all the reports filed in 2021.

4. Online Shopping and Negative Reviews

In this type of fraud, the fraudster posts negative reviews about a product online and when the victim goes to purchase the same product, they are redirected to a fake website. The victim is then asked to enter their credit card details to make the purchase and fraudsters take advantage of this.

According to the report, online shopping and negative reviews were the third most common type of credit card fraud, with 397k+ reports filed in 2021, which is equal to 6.94% of all the reports filed.

5. Banks and Lenders

Banks and lenders are other common targets of fraudsters. In this type of fraud, the fraudster pretends to be a legitimate bank or lender and tricks the victim into giving them their credit card details. They then use these details to make unauthorized transactions.

195k+ reports were filed under this category, which is equal to 3.41% of all the reports filed in 2021.

6. Debt Collection

In this type of fraud, the fraudster contacts the victim and pretends to be a debt collector. They then trick the victim into giving them their credit card details so that they can make a payment. Once shoppers give up their details, fraudsters take advantage of it.

151k+ reports were filed under this category, which is equal to 2.64% of all the reports filed in 2021.

7. Prizes, Sweepstakes, and Lotteries

In this type of fraud, the fraudster contacts the victim and tells them that they have won a prize or lottery. They then ask the victim to pay a small processing fee using their credit card. Once the victim does so, they disappear and the victim is left with no prize and an empty bank account.

148k+ reports were filed against Prizes, sweepstakes, and lotteries in 2021, which is equal to 2.58% of all the reports filed.

8. Auto-Related Fraud

In this type of fraud, the fraudster contacts the victim and pretends to be a legitimate car dealership. The fraud could be anything from selling a car that doesn’t exist to asking for a deposit to hold the car. Once the victim makes the payment, the fraudster disappears.

137k+ reports were filed against auto-related fraud in 2021, which is equal to 2.40% of all the reports filed.

9. Internet services

The Internet is full of scammers who are always looking for an opportunity to take advantage of people. This type of fraud includes phishing emails, online auction scams, and fake websites.

121k+ reports were filed against internet services in 2021, which is equal to 2.12% of all the reports filed.

10. Business and Job Opportunities

This is one of the most common frauds that is targeted toward recently graduated or unemployed individuals. In this type of fraud, the fraudster posts a fake job advertisem*nt. It’s quite common for the fraudster to pose as a recruitment agency. As soon as they manage to get the victim’s CV, they ask for a processing fee to be paid using the victim’s credit card.

104k+ reports were filed against business and job opportunities in 2021, which is equal to 1.81% of all the reports filed.

Conclusion

Credit card fraud is a huge problem in the United States. In fact, it is estimated that $16 billion was lost to credit card fraud in 2017. Less than 1 percent of all credit card fraud cases are actually solved by law enforcement. This means that if you are a victim of credit card fraud, your chances of getting your money back are pretty slim. However, there are a few things you can do to help prevent credit card fraud. For example, you can keep your credit card information safe, check your credit card statements regularly, and use a credit card with fraud protection. If you think you’ve been a victim of credit card fraud, contact your credit card company and law enforcement right away.

Further questions

What's your question? Ask it in the discussion forum

Have an answer to the questions below? Post it here or in the forum