Credit Card Fraud is the unauthorized use of credit card details to illegally access funds or purchase goods or services. Fraudsters obtain credit card info in many ways, including physical theft, the use of skimming devices, data breaches of banks or retailers, phishing attacks, or account takeovers. Credit card fraud results in immediate financial losses for financial institutions and can also cause lasting reputational damage if a bank has a constant history of not detecting and blocking fraudulent activity on its customers' accounts.
Use case/ examples for credit card fraud
Payment fraud: Using stolen card information, from physical cards, data breaches, or use of a skimmer, to make unauthorized purchases, sometimes attempting to establish a pattern of normal usage with the card before making a very large purchase.
Credit card account fraud: Applying for new credit cards using stolen or synthetic identity information.
ATM fraud: Use of stolen physical credit cards for cash advances at ATMs.