Credit card fraud methods are constantly evolving. The following are common types and identification methods to help cardholders and institutions improve their awareness of prevention.： --- ###**1. Common credit card fraud methods** 1. **Card-Present Fraud (Card-Present Fraud)** -**Physical card theft**: After the card is lost or stolen, it is used by others for offline consumption. -**Skimming**: Steal card magnetic stripe information and copy counterfeit cards by modifying POS machines or ATMs. -**Card-Not-Present (CNP)**: Stealing card number, CVV, expiration date and other information for online shopping or telephone payment. 2. **Phishing (Phishing)** -Fake bank/merchant emails, text messages or websites to induce users to enter card information. -For example“ ”The account is abnormal, click the link to verify" and other words. 3. **Identity theft (Identity Theft)** -Use other people's identity information (such as ID number and address) to apply for a credit card under an assumed name. 4. **False transaction (Friendly Fraud)** -The cardholder falsely claimed that the goods or services had not been received, and initiated a chargeback to the bank to defraud the refund. 5. **Internal crime** -Disclosure of customer credit card information by merchant employees or insiders of financial institutions. 6. **Small test transactions** -Card thieves first make small purchases to test whether the card is valid, and then initiate large transactions. --- ###**2. Methods for identifying potential criminal patterns** 1. **Abnormal trading behavior** -**Geographical abnormality**: The same card transacts in multiple places in a short period of time (such as domestic +overseas). -**Time-intensive**: High-frequency continuous transactions, especially late at night or during periods when non-cardholders are active. -**Amount mode**: After a small amount of testing, it is followed by a large amount of consumption, or multiple transactions close to a single limit. 2. **Technical detection signal** -**Device fingerprint**: The same IP/device initiates multiple transactions with different card numbers in a short period of time. -**Virtual network**: Hide the real location through VPN or proxy server. -**Repeated failed attempts**: After entering the wrong CVV or expiration date multiple times, it suddenly succeeds. 3. **Cardholder behavior analysis** -Inconsistent with historical consumption habits (such as sudden purchase of high-priced luxury goods or virtual goods). -Types of merchants commonly used by non-cardholders (such as overseas gambling websites, cryptocurrency platforms). 4. **Data breach association** -Multiple cards are stolen and swiped at the same merchant, which may point to a vulnerability in the merchant's system. --- ###**3. Prevention and response measures** 1. **Individual users** -Enable real-time transaction SMS/APP notification to find abnormalities as soon as possible. -Use a virtual card or a third-party payment (such as PayPal) to isolate the real card number when shopping online. -Check bills regularly and appeal against unknown transactions immediately. - Avoid connecting to public WiFi for payment operations. 2. **Merchants/Financial institutions** -Deploy an AI risk control system to mark high-risk transactions and review them manually. - Verification methods such as CVV and dynamic verification code (3D Secure) are mandatory. -Regularly audit the security of POS machines to prevent the implantation of side-recording devices. -Strengthen monitoring of accounts with abnormal chargebacks. 3. **Technical tools** -Machine learning model: identify suspicious patterns through clustering analysis and anomaly detection. -Blockchain technology: Some banks try to use BLOCKCHAIN to track transaction links. --- ###**Fourth, case reference** - **Theft mode**: After a user's card consumes in country A, a transaction in country B appears within 1 hour, triggering a bank risk control freeze. -**Phishing attacks**: SMS links disguised as e-commerce induce users to enter card information, which are then used to purchase game point cards. **Reminder**: If fraud is found, contact the bank immediately to freeze the card and call the police, and keep the transaction records as evidence. Credit card security relies on multi-party collaboration, cardholders need to be vigilant, and institutions need to continuously upgrade risk control technologies to cope with changing criminal methods.