Credit card fraud in Australia — it could happen to you

Here's what you need to do when someone uses your credit card illegally. And some expert tips to protect yourself from credit card fraud in the future.

Richard Whitten's headshot
Amy Bradney-George's headshot

By

Richard Whitten

&

Amy Bradney-George

Updated

Fact checked
4.7 based on 831 reviews

Key takeaways

  • Australians lost almost $1 billion to fraud; immediately freeze your card and contact your bank.
  • Regularly review transactions and your credit report for suspicious activity, helping to prevent future fraud.
  • Leverage your card's zero liability protection and security features like chip technology and online verification.
Australians lost almost $1 billion to credit card fraud and theft in 2024. The average victim lost $418.

Following basic safety steps can help reduce the chances of your card details ending up in the wrong hands. But with card scams and fraud on the rise, the smartest thing most of us can do is monitor our card transactions and notify the bank as soon as there's a problem.

What do I do if my credit card has been used fraudulently?

  1. Freeze or cancel your card. You can freeze or cancel a card in seconds using your bank or card company's app or website.
  2. Contact your bank or card company. You'll probably need to get on the phone with your card provider if you need to get a transaction reversed. Here's a complete list of domestic and overseas contact numbers for the major Australian card issuers.
  3. Decide if you need to call the police. Depending on the severity of the experience you can also call the police. The phone number for non-emergency policy contact is 131 444.
  4. Get a new card. Whether your card's been stolen, or someone has found a way to use your credit card without having the actual card (likely by generating the numbers and getting lucky), once your credit card is stolen or compromised you have to get a new one. Temporarily freezing the card won't stop it happening again.

Credit card fraud can be an overwhelming experience, but it's important to remain calm and contact your card issuer as soon as possible.

Consider reporting the scam to the ACCC

You can report a scam to the Australian Competition and Consumer Commission (ACCC) by filling in a short form on the Scamwatch website. While this may not help you personally, it will notify the watchdog about the scam and potentially help others to avoid it.

Kelly Vieira's card fraud experience

"A family member once fell for a screen recorder scam. The scammer called them pretending to be the bank. They had basic details like name, address and seemed legit. They tricked my family member into downloading a screen reader app so they could 'reverse a suspicious charge' made on the card. Luckily their actual bank flagged the 'test' transaction the scammers made as fraudulent and called them. The charge was only $500 and the bank reversed it pretty quickly."

Contributor

9 tips for avoiding credit card fraud

Credit card fraud can come in many forms, so here are some of the strategies you should use to protect your account.

Ask an expert: What can people do to keep their credit card safe online?

Cyber security expert Mark Jones.Mark Jones
Cyber security expert

Cyber security expert Mark Jones offers the following tips for keeping your credit card safe:

  • Never store your credit card details in the browser when prompted
  • Never enter your credit card details on public use computers
  • Never provide your credit card details via email
  • Only enter credit card details on secure sites, identifiable by a locked padlock in the address bar
  • Only buy online from retailers you know and trust by reviewing business details and online reviews

Consumers must also educate themselves about common online threats using free educational resources like the Stay Smart Online Program or the ACSC Alert Service.

1. Keep your credit card secure

This one is obvious, but know where your card is at all times. Always cover the terminal when entering your PIN and if you've lost your credit card, contact your bank immediately.

2. Regularly review your transaction history

If you check your transaction history regularly you have a better chance of spotting fraud quickly.

Fraudsters may test your account first by making a small transaction: the sooner you spot any odd listings on your account and report them to your bank, the better.

If you can enable push notifications every time you use the card then monitoring the activity is even easier.

3. Check your credit report

There's a chance someone has applied for a credit card in your name. If so it should show up in your credit report. Even if the application was rejected it will still show up.

If you find anything suspicious contact the relevant card issuer and the credit reporting bureau immediately to investigate the issue and have it removed from your report.

You can get a free copy of your Experian credit report and score through Finder to get started.

4. Use secure websites

When shopping online look for https:// (notice the 's') at the beginning of the website address instead of http://. This means the website has added security. Check if there are any negative customer reviews or if items are considerably less than the normal online retail price.

5. Consider using PayPal when shopping online

Using PayPal for online transactions gives you added protection. It's one more barrier between you and your credit card.

5. Be wary of suspicious emails, text messages and calls

Suspicious communications will vary, so be vigilant. Don't click links or download attachments unless you are 100% confident of who it's from, never provide your personal details over the phone or via text, and check the contact info to verify the sender (particularly with international numbers).

Look out for spelling/grammatical errors, incorrect logos and odd phrasing in any communication claiming to be from your bank or card company.

6. Confused? Call your bank or card provider

If you think something's wrong with your card or you've received a message from your bank about "suspicious activity" then call your bank and check.

Most importantly, call using a number you can find on the bank's website. Scammers can give you fake numbers to use.

If you've received a call claiming to be from your bank and you're not sure, hang up and call them yourself.

7. Don't rely on one card for everything

You can spread your risk around a little by having several cards and accounts. That way, if one is compromised or hacked you're not risking all of your money.

8. Going overseas? Tell your bank

Notify your bank or card company when you're going overseas. It helps them to have a record if something does go wrong.

9. Block international payments on your card

Most card companies let you pause or block certain types of card transaction, including overseas transactions.

If you're not frequently making overseas purchases with a card this is added protection. You can just turn overseas transactions on when purchasing then pause them again.

How does credit card fraud work?

These are the types of credit card fraud that you should watch out for:

  • Credit card skimming or counterfeit card fraud. Fraudsters use your credit card data to make a counterfeit card. They can get this data by skimming, which involves a fake card reader hidden inside an ATM or attached to a legitimate card reader. The skimming device copies the card details from the magnetic strip.
  • Card-not-present fraud. This involves your card details being used to make online and over-the-phone transactions, where there is no need for a physical card, a PIN or a signature. Fraudsters often randomly generate card numbers until they find ones that work.
  • card not-received fraud. This is when someone accesses your card before you even get it. The most common way this happens is someone steals your new card from your mailbox.
  • Application fraud. Someone might apply for a credit card in your name, using your personal details, and then use it to make purchases and cash advances. This is often linked to further identity theft issues, as they would need to be able to provide enough documentation to actually get approved for a card in your name.
  • Theft. If you've lost a card or had it stolen from you, then it won't take long before someone starts using it. Cancel the card immediately.
Alex Dalrymple's headshot

"My wife's bank card fell out of her pocket. At first we had no idea it was missing. When she logged into online banking on Sunday morning there was a message saying her card had been frozen due to a suspicious transaction. We had a look at the transaction history and there were 3 transactions at 7/11 in rapid succession, 2 at a TSG outlet and one at some dodgy sounding place in the city. The total was nearly $500. She rang the card provider, who took down all the details and said they would get their investigation team on to it. Pending the outcome we would be refunded."

Alex Dalrymple
Sydney

Zero liability: Your credit card's built-in protection guarantee

Credit card fraud protection, or zero liability, is a credit card security feature. It protects you against the loss of money from fraudulent transactions.

Mastercard, Visa and American Express all offer credit card protections. To use them, you generally need to take reasonable steps to keep your card details secure (sign your card, keep your PIN safe) and report any fraudulent transactions to your bank or card company as soon as possible.

When will I get my money back from fraud?

The time it takes to get your money back after fraud varies between credit card providers. It can also depend on the type of fraud.

In some cases, you could be refunded within 7 to 21 working days, while in others it may take longer to get your money back.

Credit card security features

  • Chip technology. The microchip embedded in your credit card encrypts the sensitive data that's needed to make in-person payments. It makes it harder for the card to be copied or counterfeited.
  • Contactless security. Every time you tap and pay with your Mastercard, encryption protects your transaction data. This encryption is unique for each transaction and helps protect your contactless mobile payments. Being able to tap and pay without handing over your card also makes it difficult for the card to be skimmed or copied.
  • Mastercard SecureCode and Visa Secure. These services give you added security for online purchases. For cards and businesses that use Mastercard SecureCode and Visa Secure you will either be sent a verification code (usually via SMS), asked a security question or prompted to enter a password before the payment is processed.
  • Tokenisation. While chip technology encrypts your card data for in-person transactions, tokenisation offers a similar type of security for online transactions. This technology replaces your credit card's 16-digit number with a unique alternate number known as a "token". When tokenisation is used your card's details cannot be stored, hacked or compromised.
  • Fraud monitoring services. Many card providers have specialised teams dedicated to monitoring cardholder activity for fraud. Any irregular transactions are immediately detected and investigated. You may receive a call or text from your card company to verify it was you who made a transaction.
  • Chargebacks. Chargebacks can be requested if a transaction has been fraudulent, processed in error (e.g. processed twice at checkout), or if the purchased goods were not received. In these instances, your card provider may initiate a dispute with a merchant to reverse the transaction.

Sources

Richard Whitten's headshot
Senior Money Editor
Add to Preferred Sources

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise
Richard has written 755 Finder guides across topics including:
  • Home loans
  • Credit cards
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Amy Bradney-George's headshot
Co-written by

Journalist

Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio

Amy's expertise
Amy has written 415 Finder guides across topics including:
  • Credit cards
  • Frequent flyer
  • Credit score
  • BNPL
  • Money management
  • Sustainability
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14 Responses

    alaa's avatar
    alaaSeptember 3, 2015

    i contacted immigration service company & they charged me 1200 us, but i found that they are scammers. how master card company can help me returning the money.

      Sally McMullen's headshotFinder
      SallySeptember 3, 2015Finder

      Hi Alaa,

      Thanks for your inquiry.

      If you believe that you are a victim of a scam, you need to contact your credit card issuer immediately and explain your situation. It would also help if you can present your provider all the necessary documentation that will serve as a proof that you have been defrauded.

      You can also file a complaint to the Australian Competition and Consumer Commission by securing a consumer complaint form online, or via phone.

      Please refer to the links I have sent to your email for the complaint form and contact details of ACCC.

      I hope this has helped.

      Cheers,

      Sally

    Antonia's avatar
    AntoniaJune 9, 2015

    How to find out the credit cards under my name?

      Jonathan's headshotFinder
      JonathanJune 9, 2015Finder

      Hi Antonia,

      Thanks for your inquiry.

      An individual’s credit cards will generate monthly statements sent to the user’s designated address. Credit inquiries can also be checked by requesting a copy of your credit file.

      Cheers,
      Jonathan

    Erica's avatar
    EricaMarch 16, 2015

    We found someone has been stealing money from our debit card. It is like $40 per week in average and this had been continuing for more than 3 months. It belongs to my partner’s account. We stopped the fraud by reporting it to the bank, ANZ. But bad news is the bank said they can only cover the losses up to 120 days in time from the day we reported. We are trying to look back to see WHEN this started and how. What made me upset is, when I looked into the transaction description, the online companies that made the scams are so many and under different names. How can this happen for so long time without being notified by the bank? Do we have the right to claim for our losses prior to the 120-day time?
    Thank you very much for help.

      Jonathan's headshotFinder
      JonathanMarch 17, 2015Finder

      Hi Erica, thanks for your inquiry.

      The claims for losses from a fraud situation would be up to the lender/bank’s policies and lending criteria.

      I hope this has helped.

      Cheers,

      Jonathan

    Shela Santacruz's avatar
    ShelaFebruary 26, 2015

    Wow loads of good tips!

    Emma's avatar
    EmmaMay 11, 2014

    Is it legal for a restaurant to ask to hold my credit card until the end of the meal? I have offered my drivers’ license, but they want my card. I’ve said they can do a pre-authorisation, but refuse. They wont run a tab/bill without it, and some have min. purchase amounts to allow me to use a card. I’ve worked in the industry, Unless I have your card (in the safe), your card IS NOT SAFE! Is this legal under the new, amended CC laws in Australia?

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