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What are the types of credit card fraud?

As a consumer, you realize just how important it is to keep your debit and credit card information safe at all times. If you don't, there's a chance that it could end up in the wrong person's hands.

The phrase credit card fraud encompasses a variety of crimes. Some of the most common types include the following:

-- Identify theft. This is when a person uses another's identification to commit fraud or some other type of related crime.

-- Fraud spree. As the name suggests, this is when a person goes on a shopping spree with a credit card, making unauthorized charges.

When it comes to credit card fraud, there are two common schemes.

First off, people can use application fraud to their advantage. In other words, they open a credit card account in another person's name.

The other type is account takeover. This is when someone steals another person's account information, giving them the ability to make fraudulent purchases.

As a consumer, you know that you want to avoid becoming a victim of credit card fraud.

But have you ever considered the fact that you could also be charged with this type of crime? If this happens, you need to learn more about the charge, including why authorities think you are guilty.

Due to the complexities of credit card fraud, it's important to note that you could be charged with a crime you did not commit. Authorities are cracking down, and this often means trying to make an example of somebody who did nothing wrong. If you find yourself in this position, you must know how to clear your name.

Source: FindLaw, "Debit / Credit Card Fraud," accessed Oct. 20, 2016

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