What Is Credit Card Fraud? Your Guide to Protect Yourself

Credit and debit card fraud affect more people than most of us realize. Criminals adapt quickly, and the tactics they use are often subtle enough to slip past even the most careful cardholders. Understanding how fraud works can help build confidence to recognize early warning signs and take steps to protect your finances.

Hudson Valley Credit Union is committed to helping members stay informed and protected. With up-to-date guidance and easy-to-use digital tools, you have support at every step.

Defining Credit Card Fraud

Credit card fraud is the unauthorized use of someone else’s credit card information to make purchases or access funds. Sometimes a card number is stolen during an online purchase. In other cases, the information is skimmed at a gas pump or taken during a large-scale data breach. Fraudsters often start with small “test” charges before attempting larger transactions.
The impact can be more than financial. Many people describe feeling vulnerable afterward, especially with debit card fraud, where funds leave your account immediately. Credit card fraud works differently because the transaction goes through the card issuer first, offering more built-in protections.

Types of Credit and Debit Card Fraud

Criminals use several methods to capture card information. Knowing how each works helps you stay one step ahead.

Card Cloning and Skimming Devices

Some fraud begins at everyday places like ATMs, gas stations, and point-of-sale terminals. A device used for credit card cloning can be small enough to blend in with the machine’s hardware. When you swipe your card, the skimmer captures your magnetic stripe data. Criminals then use that information to create cloned cards. For more detailed tips, HVCU offers tips on how to spot skimmers.

Phishing and Social Engineering Scams

Phishing emails, calls, and text messages try to convince you to share personal information. A message may claim your card is locked or that suspicious activity has occurred. Criminals rely on urgency and familiarity to get people to respond quickly. Don’t panic. Verify the source before sharing any information or clicking on any links. Asking for verification from the caller is often enough to stop these scams.

Online Data Breaches and Dark Web Exposure

Large companies store and process millions of card transactions a year. When they experience a breach, card numbers can end up exposed and sold on the dark web. Victims typically don’t know their information has been compromised until unfamiliar charges appear. This kind of credit card misuse is common after headline-making breaches involving retailers, hotel chains, or online platforms.

How to Freeze Your Credit to Protect Yourself

A credit freeze is a strong option for preventing new account fraud. When your credit is frozen:

• Lenders can’t access your credit report

• Criminals can’t open accounts in your name

• Your existing credit cards remain usable

• Your credit score is unaffected

Freezes are free and easy to manage. The three major credit bureaus each have a different process to freeze your credit, so you’ll need to contact them separately.

• Equifax

• Experian

• TransUnion

You can lift or reinstate a freeze at any time if you’re applying for credit. A freeze differs from a fraud alert. A fraud alert asks lenders to verify your identity first. A freeze blocks new applications altogether. For most people, the freeze provides clearer protection.

Credit Card Fraud Protection Tools and Tips

Fraud prevention doesn’t have to be overwhelming. A few straightforward habits, combined with HVCU’s digital tools will give you strong, everyday protection.

Use HVCU’s Card Management Tool

If you misplace your debit or credit card, turning it off immediately can stop unauthorized transactions before they start. With Card Management, members can:

• Turn cards off or on with a single tap

• Reactivate cards instantly when found

• Limit exposure if a card is stolen or compromised

Some members choose to keep their cards “off” until they’re ready to use them. It’s optional, but it provides more control.

Enable CUAlerts for Account Activity

These alerts are helpful for catching debit card fraud, since funds are withdrawn directly from your account. CUAlerts can notify you when:

• Your balance rises above or falls below a threshold

• Large withdrawals are made

• Unexpected account activity occurs

An alert can be the difference between one small charge and a day of fraudulent activity.

Report Lost or Stolen Cards Immediately

If a card goes missing contact HVCU or other issuer. The sooner you act, the smaller the window criminals have to attempt unauthorized transactions.

Regularly Review Bank Statements

A short review once a week, or at least once a month, helps catch issues that might slip past alerts. Watch for:

• Charges you don’t recognize

• Small “test” charges

• Merchant names that look slightly altered

• Purchases outside your geographic pattern

If anything looks unfamiliar, reach out to HVCU or other issuer immediately.

How to Spot Suspicious Activity and Report Fraud

Fraud often starts quietly. The earliest signs may be:

• Purchases outside your usual area

• Duplicate small charges

• Unexpected ATM withdrawals

• Account changes you didn’t request

• Emails or texts confirming purchases you didn’t make

If something feels off, here’s what to do:

1. Turn the card off using HVCU’s Card Management tool.

2. Call HVCU or other issuer to report fraud or request a new card.

3. Review recent transactions to confirm what’s legitimate.

4. Place a credit freeze or fraud alert if identity theft is possible.

5. Report the incident to the FTC to document the event.

6. File a police report if formal documentation is needed.

7. Explore HVCU’s fraud education resources: Spot a Credit Repair Scam

HVCU’s Commitment to Member Security

Hudson Valley Credit Union works to protect members long before fraud occurs. That includes:

• Card Management tools that let you control when and how your cards are used

• CUAlerts that help you track account activity

• Ongoing monitoring and fraud detection

• Educational resources that help members feel confident and informed

As a member-focused institution, HVCU’s goal is to give you the tools and support you need to feel secure in your financial life.

Final Thoughts on Protecting Your Financial Future

Credit and debit card fraud can be disruptive, but it doesn’t have to define your financial life. With awareness, consistent monitoring, and trusted tools like credit freezes, card controls, and transaction alerts, you can lower your risk and respond quickly if something goes wrong.
Hudson Valley Credit Union is here to help you stay informed, protect your accounts, and feel confident navigating your financial future.

Frequently Asked Questions

What are the first signs of credit card fraud?

Small, unfamiliar charges are often the earliest warning. You might also see purchases outside your usual area, duplicate transactions, or emails confirming purchases you didn’t make. If anything feels off, contact your credit card issuer.

How can I freeze my credit for free?

All three major credit bureaus—Equifax, Experian, and TransUnion—let you place a credit freeze at no cost. You can do it online, by phone, or by mail. Once your freeze is in place, no one can open new accounts in your name until you lift it.

What should I do if I see a suspicious charge?

Call your card issuer to report the transaction. Review your recent activity, request a new card if needed, and consider placing a credit freeze if identity theft seems likely.

How does credit card fraud protection work?

Fraud protection may include monitoring, alerts, dispute processes, and liability limits that shield you from unauthorized charges. Using Card Management features can help you catch issues early and keep your accounts secure.

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