Credit Card Scams | AMAC

Credit cards give consumers opportunities to build credit and pay off purchases over time. Using these plastic payment cards also means that people don’t have to carry cash. Perfect, right? Not so fast. While convenient, using credit can potentially lead to problems such as being targeted for credit card scams. Once scammers steal credit card information, they may gain direct account access to steal funds, illegally make purchases, or open bank accounts. While credit cards generally offer protection from theft, it may not be all that easy to recover lost funds from some plastic cards like debit cards. Here’s what seniors should know to stay protected.

Credit card theft can happen to anyone

It’s a common misconception that credit card theft only happens to careless people, such as the woman who leaves her handbag unattended in a public place. While care should be taken to safeguard one’s possessions, credit card theft can happen to people who do their best to exercise caution. For instance, in 2017, Equifax, one of the three largest consumer credit reporting agencies in the United States, announced that its system had been breached. This led to the stealing of sensitive data from some 148 million Americans. Data stolen included:

• Names
• Home addresses
• Phone numbers
• Dates of birth
• Social Security numbers
• Driver’s license numbers
• And some credit card numbers

In 2017, Equifax was criticized for its delayed reaction in publicizing the breach, eventually identifying and assisting those impacted with settlement funds and free credit monitoring. Today, identity and credit card theft remain viable threats for card holders.

Credit card fraud vs. identity theft

Credit card fraud and identity theft are two different crimes. Credit card fraud typically involves a single credit account, whereas identity theft is broader and can affect multiple accounts. Regardless, each can damage credit and cause harm.

Everyone is at risk

Per Cardrates.com “Credit card users make a mind-boggling number of daily transactions every year. These figures are astounding, whether you’re looking at what’s happening in the United States or other countries across the globe.” According to data collected by Capital One Shopping, in 2024 credit card transactions totaled a whopping 56.2 billion. This not only demonstrates the magnitude of the credit card industry but exposes potential vulnerability of a great many credit card users.

The move toward digital wallets  

Digital wallets which store a variety of payments including debit and credit cards are now the most widely used forms of payment across the globe. In 2022, they trumped the place of credit cards as the most popular online payment method. In the United States, for 2025, PayPal, Cash App, Venmo, Google Pay, and Apple Pay are consecutively the most popular. Scams can occur on these platforms, so people should remain educated on the latest cons and hacks and use strong passwords or passkeys.

Debit card vs. credit  

Despite looking similar, these cards are different forms of payment. Debit cards withdraw funds from a bank account, whereas credit cards borrow money from a financial institution. When making online and in-store purchases, credit cards are generally considered safer as they offer better overall fraud and consumer protection. Though the use of credit cards in America is declining, a significant number of people still carry and use cards to make purchases. For instance, senior citizens who shy away from the latest technologies are more likely to use credit cards to buy things.

How can it happen?

 Per USA.gov, credit card and identity theft can occur in numerous ways such as:

• Stealing a wallet or bag containing bank/credit cards.
• Going through trash to gain bank statements.
• Installing skimmers at ATM machines, cash registers, and fuel pumps (to digitally steal information).
• Stealing information from phones using public Wi-Fi.
• Looking through social media accounts to find identifying information in posts or photos or through online quizzes and surveys.
• “Phishing” to get information through fraudulent emails, texts, or phone calls.

CNP Fraud

In recent years, card-not-present (CNP) fraud has dramatically increased. In many cases of CNP fraud, credit card information is obtained from victims via unsolicited calls or messages. Commonly, cyber criminals act as imposters to gain their victim’s trust to access banking or credit card information. Bad actors may pretend to be from a well-known company such as Amazon or Microsoft to trick people into divulging information or to sell them fraudulent products or services. The rise in online shopping has contributed to this type of fraud. Bad actors who steal credit card information may use it to make fraudulent transactions with a card they do not own or have in hand.

Trickery geared toward seniors

Mature citizens require awareness of credit card scams to stay safe. Why? Senior citizens with accumulated life savings for retirement are often targeted by scammers seeking access to their money. Bad actors also zero-in on older people who are isolated or facing age-related declines.

Keep your information private  

People of all ages are encouraged to protect their finances and valuable personal information from hackers and scammers. This means keeping bank accounts and other vital information like your Social Security numbers private. Adhering to this simple principle can go a long way to safeguarding accounts. If a random caller seeks information from you regarding a banking matter or other problem, it’s okay to be suspicious. Do not give out any information. Promptly hang up and contact your bank directly using their official phone number. Never call a number given to you by a potential scammer. Verify rather than share your private information.

Being wise   

Ethel received a cellphone call from her bank stating that her checking/debit account was overdrawn. The caller requested her debit card information to help her resolve the issue. Meanwhile red flags went off: Ethel knew that her account was likely not overdrawn, and she suspected the call was a scam. Ethel hung up the phone without sharing information. She immediately called her bank using their official phone number. The bank verified that Ethel’s account was fine, and that the call was a scam. In some imposter cons, scammers attempt to instill fear to get potential victims to divulge personal information. Beware of this form of trickery and immediately hang up or stop engaging.

Do your share

Equifax shares that individuals can take actions to helpprevent credit card fraud. They recommend:

1. Monitoring your accounts. This includes frequent careful inspection of your account statements. Report any unusual activities to your banking or credit card institution immediately.  
2. Signing up for fraud alerts. This important security feature helps to identify suspicious activity in real-time. Many credit cards offer this protection and notify customers before large or suspicious transactions go through.
3. Watching out for phishing(email) or smishing (text) scams. Sometimes these messages may appear to come from a legitimate source. Don’t simply trust that messages are real. Independently verify authenticity before acting.
4. Avoiding use of unsecured websites or public Wi-Fi. Even with a private connection, pay attention to URLs. Only do business with websites containing “https” to indicate that information is encrypted and secure.
5. Regularly checking your credit reports. Review your credit report for suspicious activity or new accounts you do not recognize. Note that credit reports are offered free every 12 months and can be obtained through one of the three major credit bureaus – Equifax, Experian, and TransUnion.

Phishing schemes   

Phishing is a technique used by scammers to pull off credit card scams. Phishing schemes involve the practice of sending fraudulent email communications that appear to come from reputable sources. Here’s an example of a recent phishing scam designed to steal credit card information:

Texts were sent out by scammers pretending to be from the American Automobile Association (AAA). The texts looked believable and even bore the AAA logo. The message claimed that recipients could receive an emergency car kit valued at $250 by clicking a link and completing a survey. Following the brief survey, people were instructed to enter their credit card information to cover shipping and handling to get the “free” car kit. Customers input their credit card information and got an error message. This prompted them to input a second card and so forth. In doing so, scammers obtained sensitive information to include credit card information from numerous cards held by the victims.

Raising awareness

AAA is not involved in free kit giveaways and advises people not to open these emails or click on links. The company continually informs its customers that they do not ask for personal information via text or email.

Additional techniques used by scammers

Scams have grown quite sophisticated, and scammers can reach out in numerous ways:

• Vishing: Scams that happen over the phone, voice email, or VoIP (voice over internet protocol) calls.
• Smishing: Scams that happen through SMS (text) messages.
• Pharming: Scams happen when malicious code is installed on a computer and redirect people to fake websites.

Click here to learn more terms associated with scams.

Knowledge is power

Imposter scams (using false identities) utilize name recognition to gain trust. And, unfortunately, it’s easy for victims to fall prey. Experts recommend being cautious of unsolicited emails or messages, even those that appear to be from genuine sources.

Put on your detective hat

Should you receive an email that appears suspicious, do NOT open it or click on links. Listen to your gut instinct and delete it. If you are unsure, start by verifying the legitimacy of the sender and the web address. Note that scammers use slight differences and look-alike URLs to trick people – so do your detective work. Those with irregular spellings, spacings, or unusual characters typically indicate scams.

Refund phishing

Refund phishing is a popular scam that involves the promise of helping victims recover money. Scammers use fake identities (such as pretending to be from Amazon). Scammers send convincing emails stating that a product purchased was defective. Or they may say there is an issue with an account or order. Account holders are then asked to click a link to provide personal information to resolve the refund issue. Should you input your credit card information, you are giving your card information directly to a scammer.

Email and other written scams

Since many credit card scams are perpetuated by scammers through emails, people should remain educated on warning signs. Here are some common ones to watch for:

• Generic or awkward greetings. Legitimate companies typically use the customer’s name in a letter. However, most mass emails sent by scammers use generic titles such as “Hello” or “Dear User” or “Dear Customer,” which possibly indicates a scam.
• Sense of urgency. Scammers frequently pressure people to act immediately or face consequences. Note that emails that contain threats such as fines or arrests are likely scams. Per Fastech Solutions, “Their phishing attempts often succeed because they trigger emotional responses – urgency, fear, or curiosity – before you have time to think critically.” Legitimate companies do not send threats by mail.
• Request personal information. Here, fraudsters request information from potential victims. Scammers may ask you to verify or confirm credit card details or give out passwords to steal your information. Banks will not contact you to ask for your PIN, nor will they request other personal details over the phone or by text or email.
• Misspelling & poor grammar. While some mistakes are the result of scammers being non-native speakers, scammers may also intentionally use poor grammar to bypass filters that scan for key words. Thus, this indicates a scam.

Upping your protection  

Protecting yourself against credit card fraud is challenging in a world where scams are prevalent. Here are some takeaways to avoid being scammed. Guard your private information to include passwords, banking information, and Social Security numbers. Be wary of out-of-the-blue requests for credit card information as these indicate scams. Avoid responding to unsolicited calls, emails and texts as they are primary methods that scammers use to gain potential victims. Be choosy where you conduct business and make purchases online to avoid unsafe transactions. Use computer safety features, strong passwords, and multifactor authentication for accounts. Monitor your credit information and accounts to maximize security. And, as always, report lost or stolen credit cards straightaway to your payment card provider.

 Disclosure: This article is purely informational and is not intended as a substitute for professional financial advice.