Like most crooks, credit card scammers seek low-hanging fruit. They want access to the easiest credit cards to steal and use. The card they’re least likely to go after is American Express, primarily because American Express transactions are protected with an extra layer of security.
A user must provide a ZIP code to complete a purchase using their American Express, information the average credit thief does not know. Therefore, crooks would rather steal a credit card from a network other than American Express.
Scams
Credit card fraud is alive and well. Roughly 215,000 cases of credit card fraud were reported to the Federal Trade Commission (FTC) in the first half of 2024 alone.
There are charity scams in which a scammer poses as a well-known charitable organization, seeking donations from people willing to help. The process is slick. Scammers keep their eyes on the news, looking for anything they can collect money for.
This includes everything from war victims to people living in disaster zones following a natural disaster. The money, of course, never reaches those who need it. Instead, it goes directly into the scammer’s bank account.
Some victims of credit card fraud say their odyssey all began with someone contacting them by email or phone, claiming to be with their credit card company. According to the scammer, the card issuer was running a limited-time promotion during which they would lower the credit card holder’s interest rate. Once they talk their victims into “verifying” the credit card number, the fraudster is off and running with the card.
The problem with scammers is this: There are far too many scams for the average person to keep track of, and the number of new scams grows daily.
The simple brilliance of requiring a ZIP code
Once a thief has a credit card, their next move is typically to make fraudulent online purchases or buy gift cards that are difficult to trace but easy to sell. Because American Express won’t let a person make a purchase using its cards without entering their ZIP code, it’s far more difficult for a random thief to take a picture of the card and use it like they can with other cards. They’re out of luck unless they know precisely where the cardholder lives.
When Reader’s Digest interviewed convicted identity thieves, they were told that the easiest way to steal people’s money is to take a photo of their credit cards while they’re being used at grocery stores. They also find stealing bills from mailboxes a simple way to access pre-approved credit card information.
How to protect yourself from scammers
Knowing that scammers are on the lookout for easy prey, defend yourself and your card by employing these tips:
- Only use a credit card with an embedded chip. Cards with an embedded chip are more difficult to clone than magnetic stripe cards. The embedded microchip stores information securely and generates a unique code each time you use it to make a transaction.
- Opt out of pre-approved credit card offers. You can opt out by calling 888-5-OPTOUT.
- Don’t leave credit cards or credit card bills lying around at home. Whether it’s someone who comes in to fix your cable or one of your kid’s friends, you want to make it next to impossible for anyone to see your personal credit card information.
- Check for suspicious-looking attachments on an ATM or gas pump before using it. If a machine looks like it’s been tampered with, find another one and report it to the gas station, store, or bank immediately.
- Carefully protect your personal information. Remember that your bank, credit union, or credit card company will not email, text, or call you asking for information or hoping to discuss your account. Never provide them with personal information.
- Never make an online purchase until you’ve checked for the letters “https” on the URL. Sites without “https” cannot be trusted.
- Don’t throw anything away that includes your personal information. If you need to toss an old bill or bank statement, run it through a shredder first.
- Never access your bank account over a public wifi network, and when you visit your bank account online at home, make sure your network is secure by requiring a password.
Unfortunately, scammers will scam. It’s up to each of us to protect our credit card information. In the meantime, using an American Express card to make everyday purchases may be the safest option.