As countries around the world move towards digital currency and cashless societies, it is important to be aware of the risks technology can pose to your finances. With the proliferation of e-commerce and online payments, anyone can become a target of fraud and identity theft. Familiarize yourself with these 25 credit card fraud statistics and steps to report fraud so you can actively protect your money and information online.
Use this information to help protect your credit card accounts, and then skip to the infographic for cybersecurity tips to help prevent fraud online.
What is credit card fraud?
Credit card fraud is a type of identity theft that occurs when someone other than you uses your credit card or account information to make an unauthorized charge. Fraud can occur through a stolen, misplaced, or counterfeit credit card. Additionally, the rise in online retailing has made card no fraud or the use of your credit card number more common in ecommerce transactions.
In the United States, credit card fraud has been the most common form of identity theft for four out of the last five years. The US is the most fraudulent country, accounting for more than a third of the world’s card fraud losses. It is important to arm yourself with knowledge of credit card fraud and identity theft so that you can practice good money habits and awareness in your daily life.
Key takeaways about credit card theft
We’ve compiled key takeaways from the 2020 Federal Trade Commission (FTC) Annual Data Book to educate you on the frequency and severity of credit card fraud, as well as identified statistics on the populations most vulnerable to fraud.
- The most common payment method Credit cards were identified from all fraud reports.
- Credit card fraud made total 459,297 reported cases of fraud and identity theft combined in 2020.
- 66,090 cases of reported fraud
- 393,207 cases of reported identity theft
- In identity theft cases 30-39 years old Most cases of credit card fraud are reported during this 80 years and older least reported.
- Cases of identity theft through credit card fraud increased by 44.6% from 271,927 in 2019 to 393,207 in 2020.
- Identity theft from new credit card accounts increased by 48% in 2020.
Identity theft statistics
When someone steals your identity and personal information and uses them for fraud, it is considered identity theft. Various types of information can be stolen in identity theft, with social security numbers, credit card information, and bank account numbers being common targets. Delve into these identity theft insights and see how credit card fraud makes up the bulk of these cases.
1. From 2019 to 2020, the number of reports of identity theft increased 113% and credit card identity theft reports increased 44.6%.
2. Credit card fraud explained 393.207 of the nearly 1.4 million identity theft reports in 2020.
3. This makes credit card fraud the second most common type of identity theft reported, behind only government documents and performance fraud for this year.
4. New Credit Card Account Fraud increased to 365.597 Cases in 2020.
5. The number of new credit card account frauds has increased 48% increase from 2019.
6. In 2020, 33,852 reports stated that existing credit card accounts were the target of identity theft.
7. Identity theft reports only from existing credit card accounts increased by 9% in 2020 compared to 2019.
8. Credit card fraud was the leading type of identity theft in 4 of the last 5 years.
9. People 30-39 years old most cases of identity theft reported by credit card in 2020 (110,952 reports).
10. In contrast 80 and older the fewest cases reported credit card identity theft (2,056 reports), closely followed by the 19 and younger (2,186 reports).
11. Card fraud is increasing and is tied to 65% of all fraud losses. (Nilson report)
Debit card vs. credit card fraud
When it comes to protecting your wallet, knowing which payment methods scammers are targeting is important. While many credit cards offer consumers fraud protection or no liability, they are also the most commonly targeted payment method. Debit cards come second, so it is best to carefully protect your card information.
12. Of nearly 2.2 million fraud reports in 2020, only 373,423 identified a payment method.
13. Of which 91,515 reports identified credit cards as a payment method.
14. Almost reconcile 25% of the identified payment frauds that were credit cards most common payment stolen.
15. In contrast, debit cards were identified as a means of payment in 63,352 reports of fraud.
16. Debit cards made 17% of fraud cases where a payment method was mentioned and they are the second most common payment method.
17. Credit card fraud resulted in more dollars being lost than debit cards in 2020 $ 149 million total damage.
18. Debit cards totaled Lost $ 117 million in 2020.
The Most Dangerous States for Fraud and Identity Theft, and Future Predictions
Knowing which states are most dangerous for credit card fraud and identity theft is helpful so that you can be careful wherever you go. Knowing this can help you take precautions depending on where you live or if you are considering moving or visiting another state.
19. The Top 5 states with the highest percentages of credit card fraud are California (45%), Florida (44%), Georgia (42%), Alabama (42%), and Maryland (40%).
20. California not only had the highest percentage of credit card identity theft, but it did too most of the reports of which (over 66,300 reports).
21. Florida follows with about 44,600 reported cases Identity theft by credit card.
22. Credit card fraud was the leading type of identity theft in 17 states and territories: AL, AK, CA, CT, DE, DC, FL, GA, ID, IA, MD, NJ, NY, OR, PA, SD and VA.
23. In 33 additional states and territories, Credit card fraud has been identified as one of the three most common types of identity theft: AZ, AR, CO, HI, IL, IN, KS, KY, LA, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM , NC, ND, OH, PR, RI, SC, TN, TX, UT, VT, WA, WV, WI and WY.
24. The Top 5 states with the lowest percentages of credit card fraud are Kansas (3%), Maine (5%), Massachusetts (10%), Illinois (11%), and Oklahoma (12%).
25. By 2025, the United States is Expected $ 12.5 billion in card fraud losses. (Nilson report)
Report credit card fraud
If you ever suspect credit card fraud, it is important to take all necessary steps to protect yourself. For an overview of how to stop fraud and restore your accounts and identity, follow these recommended steps.
Step 1: Notify companies of fraud
Notify your credit card company and any other company that has encountered the fraud. You can do this by calling the company’s fraud department and explaining your situation. You can either close or freeze your accounts so that no one can make new charges. It’s also a good idea to update your credentials and any associated PINs for your account.
Step 2: Set up a fraud alert for your accounts
A fraud warning alerts prospective creditors that precautions should be taken to verify your identity when extending a loan. It’s free to add through any of the major credit bureaus for a year and protects you and your identity from fraudsters.
Step 3: Obtaining a Credit Report
Next, it’s important to get a credit report from a major credit bureau. The FTC recommends using annualcreditreport.com to get a credit report for free. Once you have your credit report, be sure to review it carefully to identify any suspicious accounts or purchases you have not made so that you can report them.
Step 4: Report Fraud and Identity Theft to the FTC
To report identity theft, simply file a complaint with the FTC online. After completing the online form, an identity theft report and recovery plan will be created for you. This report is based on the information you provided in the online form. So try to be as detailed as possible. With an advertisement you have proof that your identity has been stolen and you are given certain rights.
Remember to print your report if you do not want to create an account with IdentityTheft.gov as you will not be able to access or update it later. You can also choose to create an account to keep track of your recovery plan and forms online.
You can now also report fraud to the FTC online by completing a quick report, but there is no need to file both an identity theft and fraud report.
Step 5: Notify the police about identity theft
After filing a complaint with the FTC, you may also want to report the fraud and identity theft to the police. This is completely optional and you should bring the following materials with you:
- Government-issued photo identification (e.g. driver’s license or passport)
- Proof of address (e.g. an electricity bill or a bank statement)
- A copy of your FTC identity theft report
- Any evidence of theft (e.g. a notice from the IRS)
- FTC Memo to Law Enforcement Agencies
The impact of fraud and identity theft on individuals’ lives and finances is increasing every year. Find out about credit card fraud statistics so you can take precautionary measures when your money is on the line. To stay vigilant about fraud, link your credit card account to the Mint app so you can track suspicious transactions.
See the infographic below for more information about fraud and identity theft and how to prevent them, as well as cybersecurity tips and best practices.
Swell: Consumer Protection Office | Federal Trade Commission 1 2 3 4 5 | Cancer on safety | Monetary Policy and Mental Health Institute | PC-Mag 1 2 | Psychology Today | The Washington Post |