Credit card fraud is accelerating, driven not just by physically stolen cards but by advancements in AI and the massive exposure of personal data. For consumers nationwide, this threat is significant and rising: reported losses to fraud surged to over $12.5 billion in 2024.
At Latitude 32 Credit Union, protecting your finances is a top priority. Staying vigilant requires understanding the new tactics sophisticated scammers are using to exploit your trust.
The New Frontier: AI-Driven Impersonation and Scams
The landscape of fraud has expanded from technical attacks to social engineering, where criminals manipulate people into giving up access. This psychological approach is now enhanced by AI:
- Deepfakes and Vishing: AI can be used to clone voices and generate highly realistic video/audio (deepfakes) to impersonate trusted individuals; a loved one in distress, a high-ranking executive, or even a bank manager to request urgent wire transfers or sensitive details.
- Polished Phishing: Gone are the scam emails with glaring typos. AI crafts flawless, personalized, and legitimate-looking messages that mimic your bank’s tone and branding.
- Quishing (QR Code Fraud): Fraudsters exploit physical spaces by placing malicious QR codes on posters or business cards. Scanning the code redirects the user to a fraudulent site designed to harvest credentials or install malware.
- Account Takeover (ATO): This is one of the fastest-growing threats. Scammers use stolen credentials and personal data (often acquired via data breaches) to fully take control of your existing accounts, leading to unauthorized transactions and significant loss.
Common Card Fraud Tactics You Must Avoid
Beyond high-tech impersonation, fraudsters still rely on proven methods to steal card information:
| Tactic | How It Works | Prevention |
| Card-Not-Present (CNP) Fraud | Using stolen card numbers for online or phone purchases without needing the physical card. CNP fraud alone totaled $9.49 billion in losses in 2023. | Consider using secure payment tokens (like Apple Pay/Google Pay) and virtual card numbers where available. |
| Skimming | Attaching hidden devices to ATMs or payment terminals (POS) to capture card details and PINs during a legitimate transaction. | Always check the card reader for loose parts, and cover the keypad when entering your PIN. |
| Phishing/Smishing | Tricking you into revealing card details through fake emails, texts (smishing), or calls that often impersonate a financial institution or a government entity. | Never click links in unexpected or suspicious messages. Always call us back using a verified number. |
5 Steps to Reduce Risk
Reducing your risk of credit card fraud requires turning knowledge into habit.
- Activate Multi-Factor Authentication (MFA): This is the single best defense against account takeover. Enable MFA for all financial accounts, using an authenticator app or biometric data (fingerprint) over SMS texts.
- Monitor Accounts Frequently: Check your Latitude 32 account statements and online activity frequently. Loss can be averted completely or in part if you catch it quickly.
- Use Strong, Unique Passwords: Use a reputable password manager to generate and store complex passwords. Never reuse passwords across financial and shopping sites.
- Be Wary of Public Wi-Fi: Avoid accessing financial services without a secure, private connection. Public Wi-Fi networks are often unsecured and easily monitored by sophisticated hackers.
- Freeze Your Credit: Consider placing a credit freeze on your credit reports when you are not actively applying for credit. This prevents fraudsters from opening new accounts in your name with reputable lenders, even if they have your Social Security number.
If You Receive a Fraud Alert, Should You Act Immediately?
If you receive a legitimate fraud alert, it’s crucial to act swiftly, but only if it is a legitimate alert.
- Verify the Source (Then Check It Again): Scammers often use fake fraud alerts to panic victims. DO NOT click any links or call any number provided in the text or email. Instead, call the Latitude 32 Credit Union Member Service line at (843) 556-4809 to verify the transaction.
- Freeze and Change: If the transaction was not yours, contact Latitude 32 Credit Union to freeze your card immediately to prevent further unauthorized use. Change all linked passwords and check for other suspicious activity on your accounts.
- Report the Incident: If you are a victim of identity theft, file a report with the appropriate credit bureaus and the FTC at IdentityTheft.gov.
Staying vigilant is essential for protecting your finances in the face of rapidly evolving and increasing fraud. Your partnership in practicing safe digital habits helps us to protect your assets effectively.