Are You Committing Credit Card Fraud Without Even Realising It?

Do you realise that you might have been committing a credit card fraud this whole time? You might be surprised at some of the seemingly innocent things that may turn out to be fraud…


How well do you know about credit card fraud? Most people think credit card frauds are only limited to unauthorised use of credit cards, which, according to Bank Negara, involves the charging of purchases of goods and services without the consent of the cardholder.

But many forget that any action that breaches the agreement between the cardholder and the credit card provider (a.k.a the bank) can also be constituted as fraud. We’re referring of course to the contract signed between you and the bank. Breaking the (at times hard-to-understand) terms and conditions counts as a breach of contract. Here are some scenarios that may fall under the fraud category:

Are You Committing Credit Card Fraud Without Even Realising It?

Providing Wrong Information On Your Credit Card Application

Sure, we humans tend to err sometimes, but have you ever intentionally provided less than correct information when you apply for a credit card? It can be anything from your residential address, to your guarantor’s details. While you may think those are minor or unimportant, you are bound by the credit card application form to provide accurate and correct details about yourself.

Knowingly providing incorrect details in your credit card application is a form of fraud that, if found, could mean a one-way ticket to a very expensive legal battle between you and the bank. Things can get worse if you end up defaulting – think criminal charges and jail time.

Read also: Here’s What To Do If You’re The Victim Of A Credit Card Fraud

Using A Fake Credit Card Number For Free Trials

Free trials online, anyone? Most websites or applications that offer free trials require you to plug in your credit card information, which will end up with your card being charged if you forget to cancel them before the free trial period ends. Now, how many of you have used fake credit card details to obtain the free trials or samples online? Just key in fake numbers and see if it works. Harmless, right? Except it isn’t at all.

If you get caught doing so, you might be looking at serious fraudulent and criminal charges. For one thing, the credit card number you provided may have been marked as stolen, and for another, you might also be breaking the terms and conditions of the website where you’re trying to get the free trial from. Just stay on the safe side and use your own card details, and set a reminder to cancel the free trial before it ends.

Allowing Someone To Use Your Credit Card

It’s one thing to use someone’s credit card without permission – which everyone knows is fraud. But it’s quite another thing to allow or give permission to someone else to use your card. It may not be illegal in the eyes of Bank Negara, but it does break the terms and conditions of most bank’s credit cardholder agreement.

It may just be the simple, everyday things you wouldn’t think to be fraud in your wildest dreams; such as giving permission to your children to use your credit card to buy groceries, or get them to swipe the card on the terminal to fill up the petrol, or even asking someone to key in your credit card numbers on the online shop when you’re preoccupied with something else.

Don’t worry, it’s unlikely that you’ll be fined or charged for these acts. But you won’t be able to dispute or make claims against any of the purchases because, well, you’ve willingly given your credit card details to them.

Accidentally Disputing Your Own Credit Card Charges

You know those times when you buy things online and the charge reflected on your credit card statement is made by a completely different merchant? For those of you who are used to online shopping, this is hardly a surprise. But for the newbies, this can come across as quite a shock, and it’s not uncommon for them to call their credit card providers in a panic – demanding for a refund.

Believe it or not, this happens pretty often, and sometimes people might also forget the purchases they’ve made after a long night of drinking. What the bank will do in these scenarios is ask you to fill in a dispute form (get them to email it to you or download from their website), and depending on your case (if it’s a genuine fraud case), reverse the charges made on your credit card. It’s fine if it’s an honest mistake, but if it’s done intentionally, it’ll definitely earn you either a massive fine or jail time.

Having a credit card can be fun, but it’s also a big responsibility. Be sure to use your credit card wisely – both on your expenditure and your personal usage. Always make the effort to be in the know on all things credit card-related by reading our articles and guides to the best ways to save and utilise your plastic.

Have you experience any of the maybe-fraud scenarios listed on article? Share your thoughts and ideas with us in the comment section below!


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