What is credit card fraud?
Written by
Emily Tye
Reviewed by
Amy LancashireCredit card fraud is when someone uses your credit card, your card details or your identity to spend money, take out cash or open accounts without your permission. It can happen even when your card is still in your pocket, because fraudsters often only need your card number, expiry date and security code to make a payment.
It is more common than most people think. Bank and credit account fraud, which covers the fraudulent use of your card or bank details, is the biggest single category of fraud in England and Wales, making up around 2.8 million of the 4.5 million incidents recorded in the year to March 2026, according to the Office for National Statistics.
This guide explains how credit card fraud happens, how to spot the warning signs, what to do if you are targeted, and what your rights are to get your money back.
How does credit card fraud happen?
Most credit card fraud falls into a handful of types:
Card-not-present fraud: someone uses your credit card number, expiry date and security code (CVV) to buy things online or over the phone, without needing the physical card.
Phishing, smishing and vishing: fake emails, texts or phone calls designed to trick you into handing over your card details or login codes.
Card skimming and cloning: a device fitted to a cash machine or payment terminal copies your card data (skimming), which is then used to create a counterfeit copy of your card (cloning).
Lost or stolen cards: someone uses a card that has been physically taken from you.
Account takeover: a fraudster gains control of one of your existing accounts and makes transactions you didn't authorise, sometimes changing your contact or security details to lock you out.
Application fraud: someone uses your stolen personal details to open a brand new card in your name.
What are the signs of credit card fraud?
The earlier you catch it, the easier it is to limit the damage. Watch out for:
Transactions you do not recognise on your credit card statement, including very small ones (fraudsters may test a card with a tiny payment first)
Your card being declined when you know you have available credit
Calls, texts or emails asking for your PIN, passwords or one-time passcodes
Statements or post going missing, which can be a sign of identity fraud
New accounts or credit checks appearing on your credit file that you did not apply for
What should I do if I'm a victim of credit card fraud?
Act quickly and work through these steps:
Contact your card provider straight away. Ask them to freeze or cancel the card and report every transaction you do not recognise. The number is usually on the back of your card or in your banking app. If you have a Zable card, you can report a transaction you don't recognise in the app.
Report it to Action Fraud on 0300 123 2040, or online, to get a crime reference number. In Scotland, report to Police Scotland on 101. If you are in immediate danger, call 999.
Forward scam messages. Send suspicious texts to 7726 (free) and forward scam emails to report@phishing.gov.uk.
Secure your accounts. Change your passwords and PINs, and turn on two-factor authentication for your banking and email.
Check your credit file with Experian, Equifax and TransUnion for anything you do not recognise.
Consider CIFAS Protective Registration. For a fee (currently £30 for two years), this flags your details so that organisations carry out extra checks to confirm it's really you on any application made in your name.
How can I protect myself from credit card fraud?
You cannot remove the risk entirely, but a few habits make you a much harder target:
Cover the keypad when you enter your PIN, and never share your PIN or security code with anyone
Check your statements and app regularly so you spot anything unusual early
Only enter your card details on secure websites (look for 'https' and a padlock) and avoid making payments on public Wi-Fi
Treat unexpected messages asking for details or codes with suspicion; a genuine provider will never ask for your full PIN or password
Use a virtual card number for online shopping if your provider offers one
If you hold a Zable card, its guidance on staying safe from scams covers the tactics fraudsters use most often
Credit card fraud FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
