How Is Credit Card Fraud Different From Identity Theft?
Credit card fraud and identity theft can be considered similar to each other. However, in deeper analysis, they deviate from the similarities. Credit card fraud is a more limited idea, while identity theft is broad. In addition, it can be said that credit card fraud is a medium of identity theft.
Hence, to know about what these frauds are, the difference between credit card fraud and identity theft, and more, keep reading this piece.
What Is Credit Card Fraud?
Credit card fraud happens when a defrauder uses your credit card information to make unauthorised purchases. In this type of fraud, scammers tamper with login details and get access to your bank account. The unlawful practices that they use to scam your credit card are as follows -
- Skimming: Here, scammers put a device into the swiping machine to steal the information from any card.
- Hacking: Scammers can hack the unsecured sites with whom you have made your transactions.
- Phishing: Phishing refers to tricking people into getting their details. It is a very common practice among credit card scammers.
What Is Identity Theft?
Identity theft refers to stealing others' personal information, such as bank details or any other identity, to harm people. Identity theft can be of many types, such as -
- Financial Identity Theft: Here, scammers use financial details to scam people and get benefits illegally.
- Synthetic Identity Theft: Here, fraudsters use different people's identities and combine them to create a new one. They use these identities to scam further.
- Medical Identity Theft: This refers to using others' medical details illegally to avail some benefits.
- Tax Identity Theft: In this type of identity theft, hackers collect people's tax details to get an unauthorised refund.
- Criminal Identity Theft: Criminals can use others' identities to escape penalties and summon sentences.
- Social Security Identity Theft: Here, fraudsters get your social security number and login into different places with your identity to scam others.
What Are the Differences Between Credit Card Fraud and Identity Theft?
The below table provides information on the differences between identity theft and credit card fraud.
| Parameter | Credit Card Fraud | Identity Theft |
| Nature | Credit card fraud is related to monetary transactions. | Identity theft is related to stealing any kind of identity. |
| Awareness | This type of fraud can be caught right after it happens. | You may not be aware of identity theft as soon as someone does it. |
| Time it Takes Place | Credit card fraud primarily occurs at the time of purchasing. | Identity theft can occur at any time or place. |
| Area of Fraud | Credit card fraud is mostly related to technical issues. | Identity theft, on the other hand, does not only depend on technical mishaps. |
| Requirement to Carry Fraud | Credit card theft happens by tricking you through phone calls or asking for OTP therefore, you can get at least a slight idea about the coming disaster. | Identity theft can happen completely without any idea of the victim, and can be found after a long time after the incident. |
| Source of Fraud | Credit card fraud is limited to a single source, that is the tampered or stolen credit card. | The source of identity theft can be anything, like, ID proof, birth date, bank account details, social media account and many more. |
| Financial Lookout | Credit card fraud leads to fraudulent charges. | Identity theft can cause more serious issues than financial damage. |
Tips to Protect Your Identity and Credit Card
As the above discussion has brought out the main ideas of credit card fraud vs identity theft, you should be aware of some tips to prevent both. These are as follows,
- Take calls regarding credit and debit cards very attentively
- Monitor your bank accounts regularly
- Be cautious when handling your documents in public
- Change your passwords frequently
- Protect your social media accounts properly
Therefore, consider this guide on the difference between credit card fraud and identity theft to avoid further complications regarding both issues. The discussion has brought out that credit card fraud can be a potential means of identity theft. Therefore, you should protect your credit card information effectively and reduce the chances of identity theft.
FAQs About Difference Between Credit Card Fraud and Identity Theft
What to do if I lose an ID card?
As soon as you understand that you have lost your ID card, you should go to the nearest police station and fill out form EPIC-002 to file your complaint.
What to do if I lose a credit card?
After losing a credit card or recognising an unauthorised purchase, you should inform your credit card company or the bank to block the credit card.