What is credit card abuse?

Credit card abuse is the unauthorized use of someone else's credit card or account information to make purchases, transfer funds, or obtain cash advances. It can happen when the cardholder's personal information has been stolen or when they have shared their card information with someone else who has used it fraudulently.

Credit card abuse can take various forms, such as making unauthorized purchases, exceeding credit limits, cashing out rewards points, or using stolen card information to create new credit accounts. The consequences of credit card abuse include loss of funds, damaged credit scores, and legal consequences such as fines or imprisonment.

To prevent credit card abuse, it is crucial to practice safe security habits such as keeping card information secure, regularly monitoring account activity, promptly reporting any unauthorized charges to the card issuer, and safeguarding personal information when using online resources. Credit card companies also offer protection features such as fraud alerts, account monitoring, and zero-liability programs to help prevent and mitigate credit card abuse.