Credit fraud is a broad term for the use of a credit card (or any comparable type of credit) to buy goods or services with the intention of evading payment. Credit fraud includes:
- Identity theft: the unauthorized use of personal identification information to commit credit fraud or other crimes
- Identity assumption: long-term victimization of identification information
- Fraud spree: unauthorized charges on existing accounts
Just as there are various types of credit fraud, there also are different ways that credit thieves gather your personal information:
- Using lost or stolen credit cards
- Stealing from your mailbox
- Looking over your shoulder during transactions
- Going through your trash
- Sending unsolicited email
- Making false telephone solicitations
- Looking at personnel records
Discovering Fraud
There are several warning signs that credit fraud may be occurring:
- Your credit report contains inquiries or information about accounts that did not open
- Strange charges show up on billing statements
- Bills arrive from unknown or unfamiliar sources
- You receive calls from creditors or collection agencies