What Is Carding Fraud?

At BMI Federal Credit Union, we aim to keep you informed about emerging threats and provide guidance on how to protect yourself. One increasingly popular scam is "carding," a form of fraud that has evolved with technological advancements.

Carding involves unauthorized use of stolen credit or debit card information to make fraudulent purchases or transactions. Traditionally, this entails physical card theft or data breaches. However, with the rise of digital wallets like Apple Pay and Google Pay, fraudsters have developed sophisticated methods to exploit these platforms. They often obtain card details through phishing scams, convincing victims to provide sensitive information under false pretenses. Armed with this data, criminals can load stolen card information onto their own digital wallets, enabling them to make unauthorized purchases without needing the physical card.

How to Prevent Carding Fraud

To protect yourself from carding and related scams:

  1. Be Cautious with Personal Information: Never share your banking details, one-time passwords, or other sensitive information with unsolicited contacts. Legitimate organizations will not request such information via email, text, or phone calls.
  2. Verify Communications: If you receive unexpected communications claiming to be from BMI Federal Credit Union or other institutions, verify their authenticity by contacting the organization directly using official contact information.
  3. Monitor Account Activity: Regularly review your account statements and set up account alerts to detect unauthorized activities promptly.
  4. Use Strong, Unique Passwords: Use complex passwords for your online banking and digital wallet accounts and avoid reusing passwords across multiple platforms.
  5. Enable Two-Factor Authentication (2FA): Activate 2FA for an added layer of security, requiring a second form of verification to access your accounts.
  6. Stay Informed: Keep up to date with the latest fraud schemes and educate yourself on how to recognize potential threats.

What to Do If You Fall Victim

If you suspect you've been targeted by carding fraud:

  1. Contact BMI Federal Credit Union Immediately: Report the suspected fraud to us as soon as possible so we can take steps to protect your account and investigate the issue.
  2. Freeze Your Card: Suspend your card to prevent further unauthorized transactions.
  3. Change Your Passwords: Update passwords for your online banking and digital wallet accounts to prevent further unauthorized access.
  4. Monitor Your Accounts: Keep a close eye on your account activity and report any additional suspicious transactions promptly.

We are committed to providing you with resources and support to help navigate the evolving landscape of financial security.

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(April 2025)