What is credit card fraud and how do you protect yourself?
Learn about credit card fraud, types of credit card scams, and how to protect yourself and detect fraud.
CIBC
Mar. 23, 2026
7-minute read
Protecting yourself from credit card fraud may feel overwhelming. Fraudsters are constantly developing new ways to try to steal your personal information. Knowing the common types of fraud may help you stay informed and keep your financial data secure. By following these tips, you can help keep your information safe and shop more confidently.
Credit card fraud explained
Credit card fraud is when someone uses stolen credit card information to make unauthorized transactions. It’s important to protect your personal information and recognize the signs of credit card fraud so you can take action immediately if you suspect fraudulent activity.
Types of credit card fraud and scams
There are two main types of credit card fraud: new account fraud and existing account fraud. New account fraud is when fraudsters open new accounts with your information, while existing account fraud is when they steal your physical card or card details. You may be surprised at some of the ways fraudsters attempt to defraud people.
Phishing attacks
Phishing refers to messages or other forms of communication sent by fraudsters to steal your personal and financial information. These communications might appear to be from the government, a retailer, an employer, a coworker or even a trusted friend or family member. You might get an email that says you have an overdue invoice, a text or voice message saying you need to pay a highway toll or a social media message offering a deal on cryptocurrency. These messages may lead to illegitimate sites set up by fraudsters that ask you to hand over your personal information without you realizing.
Data breaches
From time to time, usernames, passwords or other data stored by websites might get hacked. This can happen to large corporations and small businesses alike. Fraudsters can gain access to this compromised data and use it to access your account, even if you personally haven’t clicked on anything suspicious. They may change passwords or personal information, leaving you locked out of your account.
Card skimming
Public card readers like ATMs, box office kiosks or self-checkout readers are high-value targets for fraudsters. Small devices called “skimmers” can be attached to these card readers without the owner noticing. When you use your card to pay, the skimmer makes a copy of your card information, which the scammer can collect and use to commit fraud.
Sometimes, fraudsters also use hidden cameras or fake keypads to capture your personal identification number (PIN).
Card-not-present
If a fraudster has your credit card information, such as the card number, expiry, and CVV, they may be able to use it to make purchases online or over the phone, even if they don’t have the physical card. It’s important to keep your credit card details confidential and frequently monitor your transactions to quickly identify any suspicious activity.
Application fraud
If a fraudster gains access to your personal information, like your name, address and Social Insurance Number (SIN), they may be able to use it to open new credit card accounts using your identity. They can then use this new account to make transactions and leave you with the debt. You may not even know there’s a fraudulent account in your name until you get notified by a collections agency.
Mail fraud
Generally, credit card companies send you your physical card in the mail. If someone steals your mail and discovers the new card, they can activate and use it. Most card providers send cards in nondescript envelopes to make them less susceptible to theft, but mail fraud may still be a risk if your mailbox is unsecured.
How to help prevent credit card fraud
Practicing simple, consistent habits and keeping a close eye on your accounts can help protect you against credit card fraud.
Evaluate websites before entering credit card data
Fraudsters use the internet to their advantage by directing you to fake websites and by stealing credit card information from unsecure websites.
When shopping online, make sure you’re on a site with “https” in the address line and a padlock icon near the URL, indicating your connection is secure. For example, VeriSign is a trusted company that secures the information entered in the purchase screens for online retailers. If the site lacks a security policy, it’s possible that your credit card information may be exposed to hackers.
Keep your credit card protected in public
When using your credit card in public, be aware of your surroundings and consider these safeguards:
- Don’t present your card to a cashier or retail employee until it’s necessary.
- If possible, refrain from reading your card number out loud and do it quietly if required.
- When creating a PIN, don’t make it a number someone may be able to easily guess, such as your birthday. Keep your PIN hidden on keypads by using your hand or body. Don’t share your PIN with or write it down where someone may be able to easily see it.
- Ensure that if a cashier requests to see your card, it's always in your sight.
Shred your statements and card-specific documentation
If you throw out your financial statements or other documents containing personal information, fraudsters may still be able to use them to access your account. To protect yourself from this low-tech scam, shred your statements and other papers that show your credit card number and other personal information before throwing them away. You may want to consider going paperless and receive only eStatements.
Check for skimmers
Before you use a public ATM or credit card reader, be mindful of skimmer devices. Fraudsters attach these skimmers directly to card readers, and you may be able to remove them easily. If you do find a skimmer, let the retailer know as soon as possible.
Steps to take if you're a victim of credit card fraud
Regularly check your transactions in the CIBC Mobile Banking® App or CIBC Online Banking® and review your monthly statement for charges you didn’t authorize. You can also request a credit report from the credit reporting agencies to find any accounts in your name that you didn’t open.
If you suspect you’ve become the victim of credit card fraud, don’t panic. Follow these steps to take back control of your finances.
- Cease all communication with the individual immediately.
- Initiate a digital fraud dispute for the transactions you didn’t authorize. Learn more about submitting a digital fraud dispute.
- If you don’t have any unauthorized transactions but you suspect your credit card has been lost or stolen, report it as lost or stolen immediately through mobile or online banking. Learn more about what to do if your credit card is stolen.
- Put a fraud alert on your credit report to alert lenders that you've been the victim of fraud. This means lenders will reach out to confirm if a new credit account is opened in your name.
- Credit monitoring services may help notify you if there are any future fraud attempts. These services are sometimes offered by your card issuer, credit bureaus, or a financial services company specializing in credit monitoring.
- Notify local law enforcement and keep records of all communications in case your bank needs more information.
You may want to be sure all of your personal and contact information is up to date in the event we need to contact you about unusual activity on your account.
Learn more about card security from CIBC
CIBC offers a variety of credit cards that come with credit card fraud protection so that you can make purchases with confidence. If out-of-the-ordinary charges are made on your account, you can take advantage of CIBC’s identity theft assistance if it becomes necessary and you can also sign up for alerts. If you have more questions about credit card fraud or credit cards in general, contact us Opens a new window..
More articles
