What Is the Difference Between Credit Card Fraud and Identity Theft?

credit card fraud

It’s easy to confuse credit card fraud with identity theft, but they’re not the same thing. Let’s take a quick look at how they’re different.

Credit Card Fraud vs. Identity Theft

Credit card fraud is a potential consequence of identity theft. Here, a thief steals your credit card information and then makes purchases in a store or online. Most credit card companies have a liability limit of $50. This means that even if a thief has charged thousands of dollars to your card, you’d likely only have to pay $50. More often than not, credit card companies simply wipe out any charges that are the result of fraud. Continue reading

Magnetic Strip v. Chip-and-Pin Card Series

Update: As we look to the UK as a pioneer in card security, we must also note their unfortunate but predicted fraud trends. Fraud loss on UK-issued cards totaled £470 million in 2014, a 6% increase from 2013. This is the third consecutive year the fraud loss has increased.

Good-bye Magnetic Strip! Good-bye Card Fraud? How EMV Cards Impact Fraud PART II

In Part I of our chip-and-pin (EMV cards) series, we discussed the merits of replacing magnetic strip cards with chip-and-pin technology. Namely, at point-of-service, EMV cards can be verified as authentic and ensure the card user is the legitimate cardholder. In terms of reducing fraud, however, there are still differences of opinion concerning the overall effectiveness of chip-and-pin. For example, the U.K. Cards Association says there has been a dramatic reduction in fraud since the introduction of these cards, saying that “Fraud on lost and stolen cards is now at its lowest level for two decades and counterfeit card fraud losses have also fallen and are at their lowest level since 1999.”  Continue reading

2013 in the Rearview, and the Security Lessons We’ve Learned

2013 Year in Review
Infographic: Security Lessions Learned in 2013

Infographic: Security Lessions Learned in 2013

To say that 2013 wasn’t a very good year for security is an understatement. From endless NSA leaks to major data breaches at LivingSocial, Adobe, and Target, it’s a year that I hope you won’t forget too quickly. Otherwise you may learn nothing from the security failures, leaving you more vulnerable to becoming a fraud victim yourself. If you want a head start on security for 2014, but the security headlines from 2013 already seem blurry, here are brief reminders of some of the bigger fraud-related news stories, events and failures.

January – The New York Times confirms that it was the victim of a sophisticated attack by Chinese hackers using advanced malware. The hackers used at least 45 different types of malware, only one of which was detected by the firm’s security systems. Continue reading