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What is credit card fraud and how to protect yourself
Welcome to our useful guide on credit card fraud. Discover what it is and what to do if you fall victim. We also look at how we protect you. And how you can protect yourself.
What is credit card fraud?
Credit card fraud refers to the unauthorised use of a credit card to make fraudulent transactions, obtain unauthorised funds or gain other financial benefits. It involves the theft of sensitive information – such as the cardholder’s account number, expiration date and security code – to make unauthorised purchases or withdrawals.
Your information could be stolen in a variety of ways, with scams being one of the most common. Whilst scams are not the same as fraud, falling for a scam could indeed result in fraudulent activity occurring on your card. A scam is when you’re tricked into authorising a payment to an account that is controlled by a scammer. You may also be tricked into taking another action, such as sharing your personal details (e.g. credit card details, PIN or password), that helps a third-party to access your accounts.
Fraud is when someone transfers funds out of your account or makes a purchase without your authority.
The true cost of credit card fraud
Credit card fraud is on the rise. Data from the Australian Payments Network shows that in 2022, the total value of credit card fraud increased by 16.5% on the previous year to $577 million.
But it’s not all doom and gloom. Credit cards can provide a safer way to pay for things – particularly when it comes to online transactions. We’ll explain why later, but first, let’s look at the most common types of credit card fraud.
Common types of credit card fraud
- Card-not-present (CNP)
Card-not-present transactions are those made online or over the phone. With the rise in online shopping, so too the rise in CNP fraud. In fact, it now counts for more than 90% of all fraud on Australian credit and debit cards. Criminals use malware and phishing to obtain your card details, which could lead to fraudulent transactions, so treat unsolicited emails, text messages and phone calls from people you don’t know with great suspicion.
- Counterfeit and skimming
Skimming is when a device – often attached to an ATM or a merchant’s terminal – steals the details of your credit card from the magnetic stripe. Your card details are then used for CNP fraud or to create a counterfeit card.
- Lost or stolen card
This type of fraud occurs when you’ve lost your card, or someone steals it, so make sure you always know the whereabouts of your card. If either happen, contact your bank immediately to temporarily block or cancel your card. Most big banks now let you do this via their mobile banking apps.
- Card-never-arrived
New and replacement cards are often sent via the post. Card-never-arrived-fraud occurs when someone intercepts your card enroute or steals it from your letterbox.
- False application
False application fraud is when a fraudster sets up a credit card account using someone else’s identify or information. The fraudster might apply for a credit card in your name and then run up debts. Another trick is to link the card to your bank account so that you’re left with the repayments. Banks have become a lot more sophisticated at weeding out this type of fraud, but it still happens.
What to do if you fall victim to credit card fraud
You should immediately contact your bank or card issuer, who will likely freeze your credit card account until they get to the bottom of it. If you’re a customer of ours, here are the steps you need to take.
How we protect you against credit card fraud
Credit cards are viewed by some as a safer way to pay for things. The reasons are twofold.
Firstly, you may qualify for our fraud money-back guarantee on any unauthorised fraudulent transactions, so long as you didn’t contribute to the loss and notified us promptly of the fraud.
Secondly, banks and credit card issuers have beefed up their security in recent years, making it more difficult for thieves than ever before. Here are some of the security features you should look for when choosing a credit card.
24/7 anti-fraud protection
Not all credit card providers offer anti-fraud protection, so it’s a good one to keep in mind when shopping for a credit card. At ANZ, we have 24/7 credit card security provided by ANZ FalconTM Technology.
If we identify any transactions as unusual or suspicious, we will try to get in touch with you to make sure it’s one of yours. If we can’t get hold of you, we may block the account until you can confirm that everything is fine.
Money back guarantees
With ANZ Fraud Money Back Guarantee, if you suffer a loss because of a fraudulent transaction on your ANZ credit card, you may be credited the amount stolen, so long as you didn’t contribute to the loss and you notified us promptly of the fraud. For more information, refer to the ePayments code referred to in the credit card Conditions of Use.disclaimer
If you notice any unusual transactions on your account, please contact us immediately on 13 22 73.
Microchip security
All new and replacement ANZ credit cards now come with microchip technology to help keep your credit card safe and secure.
Microchip security makes it more difficult for your credit card details to be fraudulently skimmed at ATMs or point of sale.
Online shopping security
Visa Secure (formally known as Verified by Visa) works behind the scenes to provide extra security for your credit card when shopping online.
With Visa Secure, sometimes you’ll be asked by your card issuer to help verify your identity through additional security steps, such as a one-time passcode, or biometrics. At ANZ, we only issue Visa credit cards.
Travelling overseas
- We recommend that you let us know before you travel overseas. This helps us anticipate an increase in overseas purchases so that we don’t unnecessarily block your credit card during this period. The good news is that you can let us know via ANZ Internet Banking.
- Don’t keep all your cards together in case your wallet or purse is stolen. Consider keeping a backup card somewhere safe.
- Be extra vigilant for card skimmers at ATMs and in-store. If the ATM or payment terminal looks unusual, or the casing is loose, don’t use it.
- Keep your contact details up to date so that we can reach you if we detect any suspicious transactions
Some final tips to help you protect yourself from scams
Always:
- Stop and think twice before acting on an “urgent” request.
- Be cautious of unexpected emails, messages or calls even if they appear to come from a legitimate organisation or someone you know.
- Verify that requests are legitimate by contacting the organisation/provider on a verifiable number.
Never:
- Share personal or sensitive online banking details (e.g. passwords, PINs, one-time passcodes) to anyone.
- Click on links or download attachments from an unexpected email or message.
- Provide an unsolicited caller remote access to your device.
Need to temporarily block, or report a lost or stolen card?
If your credit card has been stolen, or lost in an unsafe place, then you need to report it immediately via the ANZ App or by calling us. You can also temporarily block your credit card if you’re confident that you’ve misplaced it somewhere safe.
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Refer to the Electronic Banking Conditions of Use contained in your product terms and conditions (PDF).
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