Discover credit card users, like most credit card consumers, are vulnerable to fraud. If you’re not vigilant and aware, you may be at risk of joining the growing number of cardholders who have fallen victim to Discover credit card fraud.
While Discover has implemented fraud protection measures to combat this crime, they are most effective when you’re familiar with common fraud tactics and schemes. Knowing how to keep your credit card information safe is key to staying protected.
In this article, we’ll:
- Explore the common types of Discover credit card fraud
- Share tips to protect your funds
- Provide steps to report credit card fraud cases if they occur
What Is Discover Credit Card Fraud?
Discover credit card fraud occurs when a bad actor uses your Discover credit card to make purchases or withdrawals without your authorization.
They use different methods to steal your credit card information, including stealing your physical credit card or using a credit card skimmer to steal your data at ATMs or gas pumps. With the information gathered, they leverage different schemes to use your card for their gain.
Card-not-present (CNP) fraud is one of the most common types of Discover credit card fraud. In this type of fraud, criminals use your card information without having the physical card in their possession. For instance, the card information can be used to pay for online purchases. However, as you’ll see below, fraudsters can use your information in many other ways.
Common Types of Discover Credit Card Fraud
Credit card fraud can happen with your Discover card in the following ways:
Method | How It Happens |
Credit card cloning | The thief steals the card information from the magstripe at the back of the card using a card skimmer, then creates duplicates of your card for their use |
Phishing | The fraudster contacts you pretending to be a trusted organization or entity. They send you links to real-looking but malicious websites and capture any sensitive information you input on the site |
Fake online transactions | Criminals set up fake companies and trick you into inputting your credit card information to pay for an item that doesn’t exist, stealing your card information in the process |
Account takeover | Fraudsters hack into your online account, change your login information, and then take over your financial accounts. This identity theft could go undetected until you try to log into your account but find yourself locked out |
Account applications | Criminals who obtain your personal information, such as your address, credit card number, and Social Security number (SSN), can apply for multiple credit cards or loans in your name. You may only find out about this when you try to open a new credit and get denied |
Card skimming | Criminals install card skimmers at ATMs or gas stations to steal your card data when you insert the card into the card reader. Some card skimmers can even wirelessly steal your information from a distance without coming in contact with your card |
How To Report Fraud on Your Discover Credit Card
If you notice strange activity or unfamiliar purchases you never authorized on your Discover credit card statement, it may be that your identity has been compromised. Take these steps to report it instantly:
- Call the Discover credit card fraud department—Promptly contact the Discover credit card fraud phone number via 1-800-DISCOVER or 1-866-240-7938 to notify them about the fraud case. They offer 24/7 live customer service that will immediately start an investigation on your case and assist with your account recovery
- Contact the credit bureaus—Inform the three major consumer credit bureaus, TransUnion, Experian, and Equifax, to place a fraud alert on your credit reports. This will ensure lenders verify your identity if someone attempts to open an account in your name
- File a police and FTC report—File an identity theft report with your local police if you have evidence that your credit card has been stolen. You may need to submit this file to creditors, so keep a copy on hand. The Federal Trade Commission (FTC) also offers recommended steps to help you report identity theft and recover your account
How To Protect Your Discover Credit Card From Fraud

To avoid unknowingly building bad credit, take steps to protect your Discover credit card using the following tips:
- Use Discover’s free SSN alerts—Set up a free alert that will notify you if your SSN is active on any of the numerous dark websites
- Set up inquiry alerts and new account alerts—Discover offers to monitor your Experian credit report for free and alert you if anyone checks your credit. Activate the inquiry alert to learn about potential fraud quickly. Activate the new account alert if you also want to be notified about new credit cards, mortgages, or car loans opened on your Experian account
- Get alerted about your account activity—Set up notifications for new or suspicious activity on your account. Account alerts also notify you when a transaction exceeds your set amount or if a fraudster tries to siphon funds out of your credit account. You can set them up through your account profile and settings
- Sign up for online privacy protection—Discover gives you control over your private data by frequently erasing it from people-search sites that could sell your data. Visit the Discover app to activate it for free
- Use Discover’s Identity Theft Protection service—When you enroll in Discover’s identity protection service, you’ll receive bank account alerts, SSN identity alerts, and up to $1 million in identity theft insurance. This service costs $15 monthly
Discover Credit Card Theft Protection vs. Discover Credit Card Fraud Protection
Discover offers round-the-clock protection services for users interested in taking their security further. The fraud protection services provide different types of protection:
- Discover Credit Card Fraud Protection—A free warning system that constantly monitors your account for fraudulent activity
- Discover Credit Card Theft Protection—A paid tool that helps you detect and resolve credit card identity theft at $15/month
The table below offers an overview of both protection services:
Discover Credit Card Fraud Protection | Discover Credit Card Theft Protection |
Account monitoring and notifications for suspicious activities | Additional protection monitoring your personal information across multiple data sources |
Fast credit resolution for unauthorized charges | Social Security monitoring for up to 10 children under 18 |
Account closing and card replacement when unauthorized charges occur | Up to $1 million in identity theft insurance |
These security features help protect your personal information from credit card fraudsters, but you can do more to stay secure.
General Credit Card Fraud Protection Tips
Implementing the following security practices can help you stay alert and prevent credit card fraud:
- Use ATMs in highly visible and well-lit locations, preferably inside your bank or credit card issuer’s office
- Never click on links you’re not sure about or offer anybody your personal financial information, even if they claim to be from your bank
- Don’t engage in unexpected calls, texts, or emails requesting sensitive information. If an unverified source is trying to repeatedly contact you about your financial information, block them and call your bank or card issuer to inspect your account activity
- Never call numbers or click links that pop up on your computer, especially if they’re offering to help you repair your virus-infected computer
- Always keep your antivirus and anti-malware programs up to date to seal off every loophole
- Protect your cards by storing them in a safe place—never let your credit card wallet out of your sight in public
- Keep the passwords to your financial accounts private—never share them with anyone or write them down anywhere
- Be more cautious in protecting your finances—if you sense that something is wrong, investigate it closely to confirm
- Report lost or stolen cards to your credit card issuer immediately and report credit card fraud on your account if you suspect it