---
title: "Credit card fraud explained"
description: "Credit card fraud is your card details being used without permission to make purchases, withdraw money, or take out credit in your name."
canonical: "https://totalcreditcheck.co.uk/help-centre/articles/credit-card-fraud-explained/"
topic: "Fraud and identity"
published: 2026-02-10
updated: 2026-06-09
author: "Harry Austin"
publisher: "Total Credit Check (Piomes Ltd)"
---

# Credit card fraud explained

Fraud often leaves fingerprints on your credit report long before money leaves your account. Knowing what to look for is what shortens the gap.

**The short version:** credit card fraud is your card details being used without permission to make purchases, withdraw money, or take out credit in your name.

Credit card fraud happens when someone uses your card details without permission. It can involve your physical card, your card details, or [identity fraud](https://totalcreditcheck.co.uk/help-centre/guides/after-identity-fraud-what-to-do/) working behind the scenes.

Sometimes it's obvious — a transaction you don't recognise on your statement. Often it's far more subtle, and can go unnoticed for months.

## The five common types

**1. Credit card theft.** Someone physically steals your card and uses it — and if your phone went with it, [SIM takeover](https://totalcreditcheck.co.uk/help-centre/articles/sim-takeover-fraud-and-how-to-stop-it/) is the related risk to close off. A related method is **shoulder surfing**, where someone watches you enter your PIN in a shop or at a cash point, then steals your card or phone.

**2. Credit card skimming.** A device called a **skimmer** is placed over a card reader at a cash machine or petrol station, capturing your information when you swipe so thieves can create a duplicate card. Chip and PIN has made this less common, but it still happens.

**3. Stolen credit card details.** No physical card needed, which is why it's also called **card-not-present fraud**. Thieves obtain your number, expiry date and security code through online scams or hacking — often via [phishing](https://totalcreditcheck.co.uk/help-centre/glossary/#phishing) emails that look like they're from a reputable company. With those details they can make online or phone purchases.

**4. Fraudulent credit card applications.** Fraudsters use your personal information to apply for new credit, gathering data from a company security breach or social engineering attacks. If approved, they open an account and run up charges on a card you never knew existed.

**5. Credit account takeovers.** A criminal uses your personal information to seize control of your existing account, changing your address, PIN and passwords to lock you out. This can follow an email hack or a data breach.

## Signs you might be a victim

Being a victim doesn't mean you've done anything wrong, and it isn't something to feel embarrassed about. Careful, tech-savvy people get caught out too.

Look out for:

- Transactions you don't recognise on your statement
- **Hard searches on your credit report**, indicating a credit application was made with your details
- Post or email relating to an account you have no memory of opening
- Changes to your credit limit or contact details you didn't request

**Fraud can leave fingerprints on your credit report long before you notice money leaving your account**, which is why regular monitoring matters.

## How to report it

**1. Contact your card provider.** They can freeze your card, stop further transactions and issue a replacement.

**2. Check your recent statements** carefully for anything else unfamiliar. The more information you give, the easier the investigation. [What to do about fraudulent payments](https://totalcreditcheck.co.uk/help-centre/guides/fraudulent-payments-on-your-account/) sets out your refund rights and the deadlines that apply.

**3. Change your passwords** for your card account, email and any financial apps — especially if your details may have been compromised online.

**4. Report the fraud** to [Action Fraud](https://www.reportfraud.police.uk/), the national fraud reporting centre. This helps authorities track patterns and prevent further scams.

**5. Monitor your credit report.** Fraud can lead to new accounts or missed payments appearing on your file.

## How to prevent it

**Keep your cards secure.** Never leave them unattended when you're out. Store them somewhere secure at home. When paying in person, keep your card in view so it can't be tampered with.

**Stay vigilant online.** Check for a secure `https://` connection when shopping. Read independent reviews on sites like Trustpilot before paying. For financial institutions, check the [FCA Register](https://register.fca.org.uk/s/) to confirm you're dealing with a reputable business.

**Treat unexpected contact with caution.** Ignore unsolicited calls, emails or doorstep callers requesting personal information. Legitimate organisations rarely ask this way. If unsure, hang up, research the company's contact details yourself, and get in touch directly.

**Protect your personal information.** Never give out your PIN or passwords, and avoid sharing sensitive details by phone or email.

**Dispose of cards and documents securely.** Cut old cards through the chip and magnetic strip, and shred documents containing personal information.

**Keep your software up to date.** Hackers exploit vulnerabilities in outdated software.

**Use strong, unique passwords** for different accounts, changing them regularly. Reusing one password means one breach compromises everything.

## How it affects your credit health

Even when you're not at fault, unaddressed fraud affects your credit:

- A card opened in your name shows up as an account you never applied for
- Payments missed on it are recorded against you, not against whoever opened it
- The borrowing counts towards your total, so you look more indebted than you are

All of which can [lower your score](https://totalcreditcheck.co.uk/help-centre/articles/14-reasons-your-credit-score-dropped/).

Nobody can guarantee they'll never be affected. Checking your statements, being cautious online and monitoring your credit report work together to protect your finances and your future borrowing options.

## The key things to remember

- Five types: theft, skimming, stolen details, fraudulent applications and account takeovers.
- Card-not-present fraud needs no physical card at all.
- Unrecognised hard searches on your report are an early warning sign.
- Contact your card provider first, then Action Fraud.
- Check the FCA Register before dealing with any financial firm.
- Cut old cards through the chip and magnetic strip.
- Fraud you don't address still damages your credit file.