Criminals are always developing tactics to access your hard-earned money, but it's possible to stay one step ahead of scammers. Credit card fraud prevention is all about building simple, everyday habits that keep your details safe.

In this guide, we'll cover:

• What credit card fraud looks like
• Common fraudulent tactics, from shoulder surfing at the checkout to digital identity theft
• What the Consumer Credit Act is and how it can help
• Practical habits to protect your PINs and passwords
• A step-by-step recovery plan if you think you've been targeted.

Credit card fraud is when someone uses your card or card details to make purchases or withdraw cash without your permission. Sometimes this is as simple as a lost card being used in a shop. It can also be more complex, with criminals using your personal information to shop online or even open entirely new accounts in your name.

It's one of the most common types of financial crime, and it affects many of us. According to UK Finance (opens in a new tab), fraud losses on both credit and debit cards reached £298.9 million in the first half of 2025. This was a 5% increase on the same period the year before.

The aim is always to get their hands on your credit – and it starts with a data grab. Scammers either need to physically steal your card or trick you into handing over your personal information so they can impersonate you online or over the phone.

Fraudsters might try to get hold of:

• Your physical credit card
• Your card number and expiry date
• Your PIN or passwords
• Personal information such as your address or date of birth.

Once they have enough information, they can use it to buy things, withdraw money or even apply for new credit in your name.

Because it can happen in these different ways, knowing how to prevent credit card fraud often comes down to being aware and getting into good security habits. That includes protecting your card details and being confident about spotting suspicious activity when things don't look right.

Below are some of the most common types of credit card fraud and how they typically happen.

This is the most direct form of fraud. If your wallet is stolen or you drop your card in a shop, it can be used for contactless payments immediately. A couple of common ways for them to steal your card include:

This is a classic tactic where someone watches you enter your PIN at a cashpoint or a card machine. They might then follow you to steal the card or even your phone, already knowing how to access your banking apps.

If you can, try to cover the keypad when entering your PIN and be aware of anyone who is standing close to you when at the ATM.

In this situation, a scammer might call you pretending to be a police officer or a bank employee, claiming there's fraud on your account. They'll ask you to hand your 'compromised' card to a courier who comes to your door. It's important to remember that a bank or the police will never ask for your card or PIN in person.

Skimming happens when a card reader or ATM has been tampered with. A small, hidden device copies or clones your card's information as you swipe it.

To help prevent this type of credit card fraud, keep your card in sight when you're making any payments. Also, if a card reader doesn't look right - don't use it.

With CNP fraud, your physical card is safe in your pocket, but your details are not. Information such as your card number and expiry date is stolen from an online database or through a phishing email. Scammers then go on an online spending spree in your name.

While this type of fraud can happen online or over the phone, it's important to understand what phishing is, as this is becoming an increasingly advanced form of CNP fraud. Phishing is when a scammer sends a fake email, text or even a letter that looks like it's from a company you trust, like your bank. They are fishing for information like your card number or your PIN.

Legitimate organisations, including us at Capital One (opens in a new tab), will never ask you for your full PIN, password or CVV (the three-digit number on the back on your card) over email or text. If a message feels pushy, it's probably a scam.

This is a form of identity theft. A fraudster uses your personal data to apply for a new credit card in your name without you knowing. It also might include fraudulent applications for loans or financial agreements like car finance. You might only find out when you check your credit report or get a letter about a debt you didn't create.

Lowering your risk is about simple, proactive steps. Follow these credit card fraud prevention tips (opens in a new tab) to help protect your finances.

Create unique passwords that are difficult to crack. Use a blend of letters, numbers and symbols. Make sure you avoid birthdays or anniversaries as they're too easy for a scammer to find on social media.

Also, using multi-factor authentication adds an extra level of security protection. For instance, you might need to enter a one-time code that's sent to your phone, or send confirmation to your phone and email address to access your account. You should never share this code with anyone, not even your provider. Treat it as securely as you would your PIN. 

Have different PINs for each card, too. If your wallet is stolen, you don't want one number to unlock everything.

Remember, your bank will never ask for your full PIN or password by email or phone. If they do, hang up.

Always update your phone and computer software as soon as your devices notify you. Get into the habit of checking for updates too. These often contain the latest protection against new hacking methods.

When shopping online, only buy from sites starting with https:// (the 's' stands for secure) and look for the padlock icon in the browser bar. Consider where you're shopping, too. If you're using public Wi-Fi in coffee shops or airports, switch to your phone's 4G or 5G data connection before buying anything online or checking your bank account. Public Wi-Fi networks often aren’t secure.

Also be sure not to click on any links in suspicious-looking emails. Instead, go directly to the website.

You can manage most credit cards digitally. But if you do have paper documents, be sure to shred everything rather than putting everything in the bin. Similarly, when a card expires, cut through the chip and the magnetic strip before throwing it away. This makes it harder for criminals to access your address or account details.

If you move house, use the Royal Mail redirection service to stop your data from landing on someone else's doormat.

Make sure your cards never leave your sight when you're paying for something. By keeping an eye on where it is, you can be sure it's not being cloned.

Also, never share your information, such as passwords or PINs. And be wary about who you share details like your address or date of birth with.

Sharing too much personal information online can make it easier for criminals to impersonate you. Avoid posting details such as full birth dates, addresses or phone numbers.

Also, switch off any maps that reveal your live location. This helps to keep criminals in the dark about where you're likely to be with your bank cards or smartphone.

Knowing how to spot credit card fraud early can be a useful prevention technique. Following these steps can help you get to know what's typical for your credit card account and help make it easier to stop the scammers before they can do any damage.

1. Check your statements weekly

   It can be tempting to wait for the end of the month to check your transactions, but keeping track of your outgoings weekly, or even every few days, can be good for spotting anything weird. Use your mobile app (opens in a new tab) to scan for small 'test' transactions (often just 1p or £1) that scammers use to see if a card works.

2. Monitor your credit report

   A scammer might try to apply for credit in your name using your credit card details. If you receive letters about loans, credit cards or financial products you didn't apply for, it might indicate identity fraud.

   Checking your credit report can help confirm whether new accounts have been opened in your name. Request your report from the three main referencing agencies: Experian (opens in a new tab), Equifax (opens in a new tab) and TransUnion (opens in a new tab) to see if there's anything unusual.

3. Set up alerts in the app

   You can set up alerts in your provider’s mobile app to see when and where your card is being used, without needing to check your statement. 

4. Be wary of missing post

   If your bank statements stop arriving, or you receive any 'Thank you for your application' letters for cards you didn't apply for, take action immediately. This could mean someone has redirected your mail or intercepted it to get hold of your personal information.

If you do spot a red flag, don't panic. Follow this recovery plan to protect your finances and your identity:

1. Contact your card provider immediately: Tell them (opens in a new tab) which transactions are fraudulent. They will block the card and start the reimbursement process. You can report that your Capital One card is lost or stolen quickly, either over the phone (opens in a new tab) or in your Capital One mobile app (opens in a new tab). Simply tap 'My card' to find the link
2. Tell Report Fraud: Use the online reporting tool (opens in a new tab) or call 0300 123 2040. This gives you an official crime reference number.
3. Change your passwords and PINs: If one card is hacked, assume that everything is compromised. Change your banking passwords and use unique ones for every account.
4. Review your credit file: Check your report with the three main referencing agencies for any other signs that your identity has been used to apply for loans elsewhere.
5. Monitor your accounts: Look out for any further activity on your credit card account, as well as your other credit accounts. This includes any accounts you have with retail outlets or subscription services that have your credit or debit card information on file.

If you're a victim of credit card fraud and there are any fraudulent charges on your account, you might be protected under the Consumer Credit Act 1974. In many cases, credit card providers will refund fraudulent transactions once the situation has been investigated.

However, there are some circumstances where you might have to pay.

If your card is lost, stolen or copied, you might be responsible for the first £35 of unauthorised spending. This usually only applies if:

• You didn't notice the loss immediately
• Your bank was not at fault

If you report your card missing quickly, providers often waive this fee.

If the bank can prove you were grossly negligent with your card or security details, they may refuse a refund. This includes:

• Writing your PIN down and keeping it with your card
• Sharing passwords or security information
• Ignoring suspicious activity for long periods.

You may also struggle to recover money if:

• The fraudulent transaction happened more than 13 months ago
• The provider can show that you authorised the payment
• You deliberately reported a genuine transaction as fraud.

Keeping your card details secure and reporting suspicious activity quickly helps reduce the risk of these issues.

Credit card fraud is a serious issue. But while you should be vigilant, you shouldn't be worried. Credit cards are one of the safest ways to pay because the law is heavily weighted in your favour. Additionally, banks and credit card providers are adding extra security measures to make it harder for scammers to access your accounts.

If you follow our credit card fraud prevention tips when it comes to digital and in-person safety, and report issues as soon as you see them, you’ll significantly reduce the chance you’ll be a victim of fraud. 

• Keep it in sight: When paying at a restaurant, don't let the card leave your hand or your sight. Ask for the machine to be brought to you.
• Check the ATM: If the card slot in the ATM feels loose or looks like it's been glued on, walk away.

• Careful storage: Don't leave your passwords written down near your computer.
• Check the FCA Register: Before dealing with a new financial company, check the FCA register (opens in a new tab) to make sure they’re regulated.

• Book in a weekly statement check: Spend two minutes on your app every week scanning your transactions.
• Update software: Ensure your phone is set to auto-update for security updates.
• Be aware: When using your card in public, look out for anyone standing too close to you and double-check online security when browsing online in public spaces.

Whether you've had credit cards for years or you're new to managing cards, it's worth getting into good habits now to prevent fraud.

With Capital One credit cards, we make it easy to check transactions and manage your card in the app. We also let you know when it's time to make any essential security updates so you can rest assured that your cards are safe and secure – even if you need to quickly report them as lost or stolen.