How to avoid credit card fraud, traps and scams

woman enquiring about her credit card using mobile

What to do if you're a victim of credit card fraud and how to avoid it.

Many Australians have been subject to credit card scams and online fraud is unfortunately on the rise. An analysis of fraud statistics from the Australian Payments Network reveals "card not present" fraud has increased from 10.2 million transactions in 2017 to 1.8 million in 2018. This is a 76% increase year on year that cost Australians $249 million between 1 July 2017 and 30 June 2018.

While credit cards offer zero liability policies that protect you against fraudulent charges, there are some strategies you can use to protect your account from fraud in the first place.

You can use this guide to discover how you can protect your finances and what to do if you've been the victim of credit card fraud or a scam.

Who do I contact if I suspect that my credit card has been used fraudulently?

Depending on your circumstances, you have a few options:

Contact your bank

If you spot suspicious activity on your credit card account, contact your card issuer immediately to freeze your account and resolve the issue. If you have the card handy, call the number that's printed on it to speak to a representative. You can also see a complete list of domestic and overseas contact numbers for the major Australian card issuers in this guide for more information.

Australian-issued cards are usually covered by Visa or Mastercard's Zero Liability agreements or American Express' credit card fraud protection, which means you'll be refunded any defrauded funds. However, terms and conditions will apply. For example, you may be required to report the issue within a set number of days.

You can compare credit cards with a fraud protection guarantee on Finder.

Report it to the ACCC

If your account was compromised through a scam, you should also report the scam to the Australian Competition & Consumer Commission (ACCC) on 1300 300 630.

Contact the Australian Federal Police

You can see the relevant police contact number for your state below.

  • ACT. 6131 3000
  • NSW. 9286 4000
  • NT. 8980 1300
  • QLD. 3222 1222
  • SA. 8416 2811
  • TAS. 9607 7777
  • VIC. 9607 7777
  • WA. 9320 3444

How does credit card fraud work?

These are the types of credit card fraud that you should watch out for and how they work:

  • 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.
  • Counterfeit card fraud. Fraudsters can use your credit card data to make a counterfeit card. They can get your data through a method called skimming or can buy it from black markets.
  • Not-received fraud. This is when someone accesses your card before you do, such as through your mailbox when you've applied for a new card.
  • Application fraud. In this case, 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.woman's hands with credit card, laptop, and cellphone

6 ways to avoid 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.

1. Keep your credit card secure

Always make sure to cover your card when entering your PIN at the checkout or when withdrawing cash from an ATM. If you've lost your credit card, contact your bank immediately to cancel the card and get a new one issued as soon as possible.

2. Regularly review your statement

As well as keeping track of your spending, it's wise to regularly check your credit card statement to stay on top of any suspicious behaviour. This is relatively easy to do if you're using Internet banking or an app.

Although your bank will usually contact you if they spot suspicious transactions on your account (such as a large or overseas transaction), you may catch a fraudster early if you're reviewing your statement. This is because they may test your account first by making a small transaction (at either a domestic business or one overseas) before making a big purchase. The sooner you spot any odd listings on your account and report them to your bank, the better.

3. Check your credit report

As well as your credit card statement, you should also monitor your financial history through your credit report. If you see any listings (such as applications) that you didn't make, 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 you're shopping online, look for https:// at the beginning of the website address instead of http://. This means that the website has added security and you're less likely to be a victim of fraud.

You should also look at the website's reviews to see if there is any evidence of negative feedback or poor reviews of products. If an item is offered for considerably less than the online retail price, you should also be wary as it's likely to be a scam.

When you're using your credit card online, you could also consider using encrypted services such as PayPal which allow you to shop without sharing your financial details with the website.

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

The correspondence will vary, but a scam email or text message could be asking you to update your details, reporting an overdue account or flagging a fraudulent transaction. Messages claiming you've won a prize or competition are also common. So be extra cautious if you haven't entered a competition and don't provide your personal details to an unfamiliar caller or in response to an unexpected text message.

If you receive an email or text message that appears to be from your bank, always check the phone number and address that it's from before responding. Don't click on any links or download any attachments from any email. If you're suspicious, don't respond and contact your card issuer directly via the contact number listed on their website instead.

Other tell-tale signs of a phishing email include addressing the email to "customer" rather than your full name, spelling and grammatical errors, odd symbols and incorrect logos. If you suspect these are suspicious, you can report it to the ACCC, mark it as spam and block the email or contact number.

If you receive a call from someone who claims to be your bank and asks you to confirm your card information, don't provide any information. Instead, contact your bank directly using the contact details listed on their website to find out if it was a legitimate call. You should be especially careful if the call is from an international or blocked number.

6. Notify your bank if your address or contact details change

If your residential details change, contact your bank to have your details updated so that any new cards or bank statements aren't sent to your old address. You should also update your contact information if it changes so that your bank can contact you regarding a potentially fraudulent transaction on your account.


Credit card fraud can be an overwhelming experience, but it's important to remain calm and contact your card issuer as soon as possible. For an example, check out how Amy Bradney-George (one of Finder's credit card experts) kept her cool as well as what she learned when she was subject to credit card fraud.

Credit cards with refund protection

Rates last updated February 19th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
Qantas American Express Ultimate Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$450 p.a.
Receive 55,000 bonus Qantas Points, a $450 Qantas Travel Credit each year and 2 complimentary Qantas Club lounge invitations per year.
Qantas American Express Discovery Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Qantas Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Velocity Escape Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Platinum Edge Credit Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$195 p.a.
Receive a yearly $200 Travel Credit and complimentary domestic and international travel insurance, plus 0% p.a. for 12 months on balance transfers.
American Express Velocity Platinum Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$375 p.a.
Receive 50,000 bonus Velocity Points and enjoy complimentary lounge passes, a domestic return flight and insurance covers.
American Express Platinum Card
N/A
$1,450 p.a.
Annual $450 Platinum Travel Credit, 80,000 bonus Membership Rewards points and access to more than 1,200 VIP lounges worldwide.
American Express Platinum Business Card
N/A
$1,750 p.a.
Get 120,000 bonus points, platinum concierge, complimentary lounge passes, overseas travel insurance and luxury hotel benefits.
American Express Business Card
N/A
$109 p.a.
Earn Membership Rewards point per dollar spent on eligible purchases along with refund protection.

Compare up to 4 providers

Credit cards with purchase protection

Rates last updated February 19th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months
$129 p.a.
0% p.a. for 22 months on balance transfers with no BT fee. Plus, a yearly annual fee refund when you spend $6,000 and 2 lounge passes per year.
NAB Low Fee Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Receive complimentary purchase protection insurance and 0% p.a. for 18 months on balance transfers. Ends 24 February 2019.
Citi Rewards Platinum Credit Card - Online Offer
20.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 24 month balance transfer offer, plus complimentary international travel insurance.
HSBC Platinum Qantas Credit Card
19.99% p.a.
0% p.a. for 12 months
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Save with a $0 first year annual fee and a long-term balance transfer offer. Plus, complimentary travel insurance.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with a $64 first year annual fee and 0% p.a. balance transfer offer. Plus, receive a $129 Virgin Australia Gift Voucher each year.
St.George Amplify Signature - Qantas
19.49% p.a.
0% p.a. for 6 months
$179 p.a. annual fee for the first year ($279 p.a. thereafter)
Enjoy 80,000 bonus Qantas Points when you spend $4,000 within 90 days and 2 complimentary Qantas Club lounge invitations per year.
NAB Low Fee Platinum Card
19.74% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$90 p.a.
Offers 7 complimentary insurance covers and 0% p.a. for 24 months on balance transfers for a $90 p.a. annual fee. Ends 24 February 2019.
Qantas American Express Discovery Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Take advantage of purchase protection repairs or replacements on eligible items if they are accidentally broken or stolen within 90 days of purchase.
Bank of Melbourne Vertigo Platinum
12.74% p.a.
0% p.a. for 26 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a 26-month balance transfer at 0% p.a., a $0 annual fee for the first year and complimentary travel insurance.
American Express Velocity Escape Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Platinum Edge Credit Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$195 p.a.
Receive a yearly $200 Travel Credit and complimentary domestic and international travel insurance, plus 0% p.a. for 12 months on balance transfers.
Virgin Australia Velocity Flyer Card - Exclusive Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
finder Exclusive: Save on credit card costs with half the annual fee for the first year and a 0% p.a. interest rate on purchases for 14 months.
Woolworths Everyday Platinum Credit Card - Finder Only Offer
19.99% p.a.
2.99% p.a. for 18 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Finder only offer ends 15 February 2019:
Offers a $50 eGift Card, 4,000 bonus Credit Card points and a $0 first year annual fee. Plus, 10% off your shop once a month.
Emirates Citi World Mastercard
20.99% p.a.
0% p.a. for 9 months
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Receive protection through guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance.
Qantas American Express Premium Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$249 p.a.
Enjoy 30,000 bonus Qantas Points, 2 complimentary Qantas Club lounge invitations per year and the protection of complimentary insurance covers.
Citi Rewards Platinum Credit Card - Exclusive Bonus Points Offer
20.99% p.a.
0% p.a. for 15 months with 1% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Enjoy 100,000 bonus Citi reward Points when you spend $3,000 within the first 90 days. Plus, save with a $49 first year annual fee.
More info
Citi Rewards Platinum Credit Card - Balance Transfer Offer
20.99% p.a.
0% p.a. for 26 months with 1.5% balance transfer fee
$0 p.a. annual fee for the first year ($199 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 26 month balance transfer offer, plus $0 annual fee for the first year.
American Express Velocity Platinum Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$375 p.a.
Receive 50,000 bonus Velocity Points and enjoy complimentary lounge passes, a domestic return flight and insurance covers.
Westpac Altitude Black - Qantas
20.24% p.a.
$300 p.a.
Earn 80,000 bonus Qantas Points when you meet the spend requirement. Plus, 2 yearly Qantas Club lounge invitations.
ANZ First Student Card
19.74% p.a.
$0 p.a. annual fee for the first year ($30 p.a. thereafter)
An ideal, low limit credit card for full-time tertiary students with up to 44 days interest-free on purchases and a $0 annual fee for the first year.

Compare up to 4 providers

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14 Responses

  1. Default Gravatar
    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.

    • finder Customer Care
      SallySeptember 3, 2015Staff

      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

  2. Default Gravatar
    AntoniaJune 9, 2015

    How to find out the credit cards under my name?

    • finder Customer Care
      JonathanJune 9, 2015Staff

      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

  3. Default Gravatar
    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.

    • finder Customer Care
      JonathanMarch 17, 2015Staff

      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

  4. Default Gravatar
    ShelaFebruary 26, 2015

    Wow loads of good tips!

  5. Default Gravatar
    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?

  6. Default Gravatar
    KateApril 13, 2014

    I recently stayed at a hotel and had to give my credit card details. The receptionist photocopied my card. Is this legal? Two weeks later someone spent $1200 on my card.

    • finder Customer Care
      JacobApril 14, 2014Staff

      Hi, Kate.

      If you believe you’ve been defrauded, contact your lending institution as soon as possible.

      Thanks for your question.

  7. Default Gravatar
    JayJanuary 23, 2014

    Hi I have been scammed by a friends of 5 years .we used to use each others cards so there were never any doubts that it was not his card but I used to lend him money and he would pay me back some in cash and the rest he would say just go up the shops and get some smokes etc. I’m worried that I have unknowingly used a stolen card. What do I do I have contacted the police and said I’m willing to help with what ever they need..?

    • finder Customer Care
      ShirleyJanuary 23, 2014Staff

      Hi Jay,

      Thanks for your comment.

      Letting someone else use your credit card is against its terms of use; if you haven’t already please contact your bank and close the card.

      Otherwise, you’ll need to let the police do their job and help them out as much as possible.

      Cheers,
      Shirley

  8. Default Gravatar
    HichamJune 20, 2013

    Dear Sir or Madam,

    I am currently undertaking a research on the behalf of international SOS about cardholder liability in the case of credit card theft or loss (fraud).

    My research has the goal of gathering the same information for 54 different countries as regulations are different from country to country.

    I would like to know if you could (if possible) help me with some information that I believe you possess and that is extremely hard to find elsewhere (relevant information is rare).
    These questions are very simple and will only take a few seconds to answer:

    – Is there fraud regulation issued by the government (for example forcing the banks to cover the cardholders)?

    -If Yes what is the Limit? (in monetary units)

    -Do the banks provide cover?

    -Do Visa or Mastercard provide Cover?

    -Do they cover when the PIN is used ?

    Thank you very much for your attention to my case.

    Best regards,

    Hicham

    • finder Customer Care
      JacobJune 24, 2013Staff

      Hi Hicham. Thanks for writing in to us.
      a) Lenders and banks are not forced to do this – there are various codes and regulations which are voluntary to sign up to. The reason lenders are signatories is because it shows consumers that they can be trusted.
      b) Banks themselves provide cover over consumers. ANZ Falcon is one such example.
      c) Visa and MasterCard also have their own Zero Liability Guarantees – they will protect consumers in nearly all circumstances where the cardholder has taken reasonable steps to keep their information and details private and secure but has nevertheless been defrauded.

      Jacob.

Credit Cards Comparison

Rates last updated February 19th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a 0% p.a. for 14 months balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months
$129 p.a.
0% p.a. for 22 months on balance transfers with no BT fee. Plus, a yearly annual fee refund when you spend $6,000 and 2 lounge passes per year.
NAB Qantas Rewards Signature Card
19.99% p.a.
0% p.a. for 6 months with 2% balance transfer fee
$295 p.a. annual fee for the first year ($395 p.a. thereafter)
Collect 90,000 bonus Qantas Points when you spend $4,000 within 60 days of account opening. Plus, a $295 annual fee in the first year.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.

Compare up to 4 providers

* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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