What Can Someone Do With Your Credit Card Number?

When a credit card number falls into unauthorized hands, it creates significant concern. This sensitive information holds considerable value for fraudsters seeking financial gain. The potential misuse of a credit card number, even without the physical card, can lead to various forms of financial harm. Understanding these risks helps in safeguarding such details.

Unauthorized Financial Transactions

A credit card number, even without the physical card, can be used for illicit financial activities. Fraudsters commonly engage in “card-not-present” transactions, which include online purchases, phone orders, and recurring subscription services. For online transactions, the card number, expiration date, and card verification value (CVV), along with the cardholder’s name and billing address, are often sufficient. This allows criminals to buy goods, gift cards, or digital services.

Subscription services, such as streaming platforms, are also vulnerable to fraudulent sign-ups using compromised credit card numbers. These services often require only primary card details, making them easy targets for recurring charges. When additional details like the cardholder’s name and billing address are known, the range of possible fraudulent transactions expands. This information can facilitate larger purchases or bypass security checks.

Stolen credit card numbers, especially when combined with other data, can be used to create counterfeit cards. While EMV chip technology has reduced the effectiveness of this method for in-person transactions, it remains a possibility for older systems. The primary goal is to convert stolen data into monetary value, often through online purchases of easily resold items or untraceable gift cards.

Common Methods of Information Theft

Credit card numbers are acquired by unauthorized parties through various deceptive methods. Data breaches are a widespread technique, where company databases storing customer payment information are compromised by hackers. These incidents can expose millions of credit card numbers to criminals who then sell this data on illicit online marketplaces.

Phishing scams represent another prevalent method, where fraudsters use deceptive emails, text messages, or phone calls to trick individuals into revealing their credit card details. These communications often mimic legitimate entities, like banks or retailers, to prompt the victim to provide sensitive information. Malicious software can also be installed on personal devices through suspicious downloads or infected websites. These programs can capture credit card numbers as they are typed or access saved financial information.

Physical skimming devices are employed at ATMs, gas pumps, or point-of-sale terminals. These hidden devices attach to card readers and secretly capture card data from the magnetic stripe when a card is swiped. For chip-enabled cards, “shimming” devices can be inserted into the card slot to read data from the chip itself.

Physical theft, such as stolen wallets or purses, remains a direct way for criminals to obtain card information. Discarded receipts or mail containing financial details can be retrieved through mail theft. Using insecure public Wi-Fi networks or entering card details on unencrypted websites can expose information to interception.

Steps After Credit Card Compromise

If a credit card number is compromised, immediate action can limit financial damage. Contact the credit card issuer or bank without delay. Reporting fraud promptly allows the issuer to freeze or cancel the compromised card and issue a new one, preventing further unauthorized transactions. Under federal law, the Fair Credit Billing Act (FCBA) limits a cardholder’s liability for unauthorized use to $50. Many major card issuers also offer zero-liability policies, protecting consumers from fraudulent charges.

After contacting the card issuer, review all recent account statements for suspicious activity. If the compromised card was used for online accounts or shopping sites, changing passwords for those accounts is a prudent measure to prevent further unauthorized access. This helps secure other potential entry points for fraudsters.

Monitoring credit reports regularly is another important step to detect any signs of broader identity theft, such as new accounts opened in one’s name. Placing a fraud alert on credit reports with one of the three major credit bureaus can add an extra layer of protection, requiring creditors to take additional steps to verify identity before extending new credit. Filing a police report may be appropriate in cases of significant fraud or if required for insurance claims. This creates an official record of the incident, which can be useful in subsequent recovery efforts.