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.
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?
Freeze or cancel your card. You can freeze or cancel a card in seconds using your bank or card company's app or website.
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.
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.
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."
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.
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.
"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.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 554 Finder guides across topics including:
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio
Amy's expertise
Amy has written 565 Finder guides across topics including:
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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
JacobApril 14, 2014Finder
Hi, Kate.
If you believe you’ve been defrauded, contact your lending institution as soon as possible.
Thanks for your question.
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
ShirleyJanuary 23, 2014Finder
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
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
JacobJune 24, 2013Finder
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.
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Mark Jones
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.
Hi, Kate.
If you believe you’ve been defrauded, contact your lending institution as soon as possible.
Thanks for your question.
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..?
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
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
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.