What Can Someone Do With My Credit Card Number?

A credit card number, when compromised, can lead to various forms of financial exploitation. This article outlines the different actions criminals can take with a stolen credit card number, ranging from direct financial transactions to preparatory schemes.

Unauthorized Purchases and Transactions

A primary use for a stolen credit card number is making unauthorized purchases. This often occurs through “card-not-present” transactions, which do not require the physical card. For instance, online shopping allows fraudsters to enter the stolen card number, expiration date, and security code (CVV/CVC) to complete purchases.

Stolen credit card details can also be used for phone orders, where the merchant manually inputs the card information. Criminals often purchase gift cards, electronics, or other easily resalable items, which they then convert into cash.

While less common with just a number, criminals who acquire additional details like the cardholder’s name, billing address, or magnetic stripe information could create counterfeit physical cards. These fake cards might then be used for in-person transactions. However, the widespread adoption of EMV chip technology has significantly reduced the effectiveness of simple counterfeit magnetic stripe cards for in-person purchases.

Other Exploitative Uses

Beyond direct purchases, a stolen credit card number can be used for other exploitative purposes. One activity is “card testing,” where criminals make small charges to verify if a stolen card number is active and valid. These micro-transactions, often just a few cents or a dollar, help fraudsters confirm the card’s usability before attempting larger fraudulent purchases or selling the data.

Another use for compromised credit card numbers is their sale on the dark web. Criminals trade these numbers, often bundled with other personal details like the cardholder’s name, billing address, and security codes. The market for stolen financial data is robust, with prices varying based on the information’s completeness and the card’s credit limit. This market enables a wider range of global fraudulent activities.

A credit card number can also serve as a gateway for sophisticated phishing attempts. Even without an immediate purchase goal, criminals use known credit card details to craft convincing emails or messages. These communications may claim to be from the card issuer or a familiar merchant, prompting the recipient to “verify” additional personal information or login credentials. The presence of a known credit card number lends credibility to these scams, making individuals more likely to disclose sensitive data, which can lead to identity theft.

How Credit Card Information is Stolen

Credit card information can be compromised through various deceptive and technological means. One common method is “skimming,” which involves criminals attaching physical devices to card readers at ATMs, gas pumps, or point-of-sale (POS) terminals. These devices covertly capture card numbers and other data from the magnetic stripe when a card is swiped. Often, a hidden camera might also be installed to record the cardholder’s PIN, providing criminals with complete access to the account.

Phishing scams are another prevalent tactic, where fraudsters use fraudulent emails, text messages, or websites mimicking legitimate entities like banks or online retailers. These communications contain deceptive links that direct individuals to fake websites. On these sites, victims are prompted to enter their credit card details and other sensitive personal information, which is then harvested by criminals.

Malware and spyware also pose a significant threat to credit card security. These malicious software programs can be secretly installed on a user’s computer or mobile device, often through infected downloads, email attachments, or compromised websites. Once installed, the malware can monitor keystrokes, capture screenshots, or directly access data stored on the device, including credit card numbers entered during online transactions. This allows criminals to silently collect financial data without the user’s immediate knowledge.

Large-scale data breaches are a significant source of stolen credit card information. These incidents occur when a company’s database, containing sensitive customer information, is compromised by cybercriminals. Such breaches can expose millions of credit card numbers and other personal data, often sold on the dark web. Physical theft of cards or card details, such as through dumpster diving for discarded statements or stealing wallets, also remains a method.

Steps to Take if Your Card is Compromised

If you suspect or confirm that your credit card number has been compromised, immediate action is necessary to mitigate potential financial damage. The first and most important step is to promptly contact your credit card issuer or bank to report the unauthorized activity. Financial institutions typically have dedicated fraud departments available 24/7. Reporting the fraud quickly, ideally within 60 days of the statement showing the fraudulent charge, helps ensure your liability is limited under federal law, such as the Fair Credit Billing Act.

Upon reporting, your card issuer will usually cancel the compromised card and issue a new one. They will also investigate the fraudulent charges and, in most cases, provisionally credit your account for the disputed amounts while the investigation proceeds. Regularly monitoring your credit card statements for any unfamiliar transactions, even small ones, is a proactive measure that can help detect fraud early. Many banks offer alerts for unusual activity, which can be set up to notify you via email or text message.

It is also advisable to regularly check your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. You are entitled to one free report from each bureau annually, which can reveal accounts opened fraudulently in your name. Placing a fraud alert on your credit report can also be beneficial; an initial fraud alert lasts for one year and requires businesses to take extra steps to verify your identity before extending new credit. An extended fraud alert lasts for seven years and requires creditors to contact you directly before opening new accounts.

For a stronger protection measure, consider placing a credit freeze on your reports with each of the three credit bureaus. A credit freeze restricts access to your credit report, making it harder for identity thieves to open new accounts. While it prevents new credit without your explicit permission, you must temporarily lift the freeze when applying for new credit yourself. Adopting general preventative practices, such as using strong, unique passwords, being cautious of suspicious communications, and only making purchases on secure websites (indicated by “https://” in the URL), further enhances your financial security.