According to the Bundesbank—the central bank of Germany—card payments are now the most important form of electronic payment in Germany. At the end of 2024, the number of credit cards issued was around 34.2 million. Unfortunately, the popularity of credit cards also makes them an attractive target for fraudulent actors. Businesses must have effective protection against credit card fraud.

In this article, we explain credit card fraud, including how it works, how it impacts businesses and customers, and how to stay safe. We also highlight the latest fraud trends, explain how credit card fraud impacts Germany, and discuss the roles of authentication and security measures in fraud prevention.

Key takeaways

• Credit card fraud occurs when fraudulent actors use cards or payment details without permission to gain financial benefits or cause harm.
  
• Businesses are at particular risk of credit card fraud because corporate cards are often used by multiple individuals and tend to have higher limits.
  
• Fraudulent actors have increasingly moved into the digital sector, affecting online payments and ecommerce in particular.
  
• The consequences include financial losses, additional administrative workload, and reputational damages.
  
• Security initiatives—such as monitoring, authentication, and AI-powered fraud detection—are key to identifying and mitigating risks early.
  

What is credit card fraud?

Credit card fraud refers to the unauthorized use of a credit card or card details for financial gain or to cause harm to cardholders or businesses. Fraudulent actors either use physical cards or stolen digital payment details. Credit card fraud can affect both businesses and customers.

As payments become increasingly digital, fraud methods also change and adapt. Digital attacks on payment data are a major concern, alongside more traditional forms of fraud, such as theft of physical cards.

Why are businesses particularly at risk of credit card fraud?

Businesses are attractive targets for fraudulent actors. Corporate credit cards often have higher limits and are used by multiple individuals. As a result, misuse is occasionally spotted later compared to personal cards.

Other risk factors for businesses include the following:

• Business travel with frequent card payments
  
• Use of public or unsecure networks
  
• Decentralized teams and mobile ways of working
  
• Inadequate staff training
  
• Complex accounting and approval processes
  

The risk of data misuse is particularly high on business trips. Employees often use their cards for hotels, transportation, restaurants, and online bookings—and they often use public Wi-Fi networks. This makes it easier for fraudulent actors to glean sensitive payment information.

How fraudulent actors obtain credit card details

Fraudulent actors use a variety of methods to obtain credit card details. Below are the most common forms of fraud:

• Physical card theft
  Fraudulent actors steal credit cards by snatching purses, breaking and entering, or accessing unattended items.
  
• Skimming
  Skimming refers to the illegal copying of card details on manipulated automated teller machines (ATMs) or payment terminals. Fraudulent actors might also attempt to spy on customers when they make withdrawals to find out their personal identification numbers (PINs).
  
• Phishing
  Phishing involves fraudulent actors stealing sensitive data with fake emails, websites, or text messages. These messages often resemble official communication from banks, payment service providers (PSPs), or well-known businesses. The aim is to obtain credit card details, passwords, or security codes.
  
• Hacking
  Fraudulent actors use hacking to gain unauthorized access to information technology (IT) systems or databases. The goal is often to steal large volumes of credit card details and customer data. Hacking primarily affects online stores, PSPs, and company networks.
  
• Internal misuse
  Businesses can also be targets of credit card fraud from within. Employees with access to payment details or corporate cards can misuse this information or pass it on to third parties.
  

How do fraudulent actors use stolen credit card details?

Stolen credit card details can be used for a variety of criminal enterprises. Fraudulent actors can use them for purchases or sell the data on illegal online marketplaces.

Frequent forms of credit card fraud include the following:

• Identity theft
  
• Online and offline purchases
  
• Purchase of vouchers or digital credits
  
• Cash withdrawals at ATMs
  
• Fake online accounts
  
• Fake credit card creation
  
• Invoice or expenses fraud
  

Credit card fraud: Trends in Germany

Credit card fraud constantly changes and adapts worldwide. Although many forms of fraud have shifted to the digital space, many cards are still physically stolen. In Germany, the Police Crime Statistics for 2025 recorded 94,555 cases of theft of noncash means of payment (i.e., giro cards and credit cards) with a solve rate of just 8%.

While physical card theft has declined and skimming has become almost obsolete, digital fraud is rising. In Germany in 2025, there were 96,383 cases of “fraud or computer fraud using illegally obtained noncash payment methods.” This was an increase of nearly 5% year on year. Only around one-fifth of those cases were solved.

The German Federation of Consumer Organizations (Verbraucherzentrale Bundesverband, or VZBV) saw a significant increase in complaints related to cybercrimes affecting financial services in 2025. There were more than 2,400 reports of identity theft, phishing, and unauthorized debits. In 2024, the number of complaints was just over 1,500.

This trend is reflected across Europe. For example, according to a report coauthored by the European Banking Authority and the European Central Bank, the cost of the damage caused by payment fraud in the eurozone rose from €3.5 billion in 2023 to €4.2 billion in 2024. These figures demonstrate that digital fraud networks have become increasingly professional and pose an even greater challenge to both customers and businesses.

What impact does credit card fraud have on victims?

Credit card fraud can have a serious impact on both businesses and private individuals. Both parties can experience immediate financial losses and more.

Financial losses

For businesses, fraud leads to loss of earnings, chargebacks, and additional fees from PSPs. There are also costs for internal investigations, security measures, and fraud management. Private individuals are impacted by unauthorized debits, blocked cards, and temporary financial bottlenecks.

Loss of trust and reputational damage

Being associated with security incidents or data breaches can permanently damage customer trust in a business. Reputational damage often has a long-lasting impact on customer loyalty, revenue, and competitiveness.

Organizational workload

Fraud costs businesses time and money. They have to review transactions, block cards, adjust security processes, and communicate with banks or PSPs. There are also costs for IT security, compliance, and employee training.

Legal and regulatory risks

There are increasing requirements for data protection, IT security, and fraud prevention for businesses in Germany. Businesses that fail to adequately protect sensitive payment information risk legal action, fines, and potential claims for damages.

What to do when credit card fraud happens

If a business becomes a victim of credit card fraud, it is important to react quickly and follow the process to mitigate further damage. First, freeze affected cards or accounts immediately to prevent further unauthorized transactions. Next, systematically review all suspicious charges, and document any damages.

It’s also important to inform the relevant PSP or bank so they can review chargebacks and implement additional security measures. In more serious cases, it might also be necessary to engage law enforcement.

Businesses must also review internal processes to identify potential weaknesses in the payment or authorization system and better identify future incidents.

How to prevent and recognize credit card fraud

The ideal scenario for businesses in Germany is to identify credit card fraud early and use tools to prevent it. Businesses need to invest in prevention and control measures to minimize risks and protect payment processes. This includes the following:

• Introduce monitoring systems to flag unusual or suspicious transactions in real time
  
• Deploy Strong Customer Authentication (SCA) for online payments and internal sign-offs
  
• Use secure networks and virtual private network (VPN) connections, especially for business trips and remote work
  
• Establish clear internal guidelines for using and authorizing corporate credit cards
  
• Set credit card limits and activate transaction warnings
  
• Train employees to handle phishing, social engineering, and secure payment processes
  
• Regularly update IT security standards and access restrictions
  

How can authentication and security measures prevent credit card fraud?

Authentication and security measures are among the most important tools to prevent credit card fraud. These measures make it harder for unauthorized persons to access payment data and help businesses identify suspicious activities early.

Two-factor authentication

Additional security checks have become increasingly important, especially with online payments. Procedures such as two-factor authentication ensure that businesses cannot process payments using only card details. Customers must also confirm their identities using one-time codes or via banking apps, for example. This can significantly reduce the risk of fraudulent transactions.

Payment data protection

Security standards also help ensure better protection for credit card details. Encrypted data transfers, tokenization, and modern security protocols make it harder for fraudulent actors to intercept or misuse payment information.

AI-powered fraud detection

Modern technologies play an increasingly important role in fraud prevention. With Stripe Radar, businesses can automatically analyze suspicious payment activities and identify potential fraud. Radar is built with AI and uses data from the global Stripe network to continuously identify the latest fraud patterns and adapt security mechanisms.

Radar screens transactions in real time, factoring in a variety of risk signals, such as suspicious purchasing behavior, unusual device information, or previous instances of fraud. This allows for more targeted detection of risky payments without unnecessarily rejecting a large number of legitimate transactions. Businesses can integrate Radar directly into their payments infrastructure.

Credit card fraud on the German market

Unique features of the German payment market affect how fraudulent actors commit credit card fraud and how businesses can prevent it. For example, Germany has been a heavily cash-based economy. Therefore, the use of traditional credit cards is still relatively low compared to other international markets.

However, credit card fraud is still an issue in Germany. The risks constantly increase, especially in ecommerce because of online and mobile payments and cross-border transactions. Therefore, businesses in Germany must comply with international security standards and adapt their fraud prevention measures to digital business models that consistently change.

Data protection

German businesses are subject to strict data protection and security requirements. Therefore, fraud prevention and recognition must comply with the applicable legal regulations.

The key framework is the General Data Protection Regulation (GDPR), which stipulates that the processing of personally identifiable information must be transparent, performed for a specific purpose, and restricted to what is necessary. Regarding fraud detection, this means businesses can only use data that is actually necessary for security and prevention purposes.

The GDPR also requires businesses in Germany to implement appropriate technical and organizational security measures to effectively protect personal data. If a data breach does occur, reporting deadlines and disclosure requirements apply. In certain cases, the incident must be reported to the relevant supervisory authority within 72 hours.

German customers are also known for being conscious of data protection and security. Customers expect secure payment processes and responsible handling of sensitive data. Therefore, businesses must have transparent security standards to prevent fraud as early as possible.

FAQs

Below, we provide answers to the most important questions about credit card fraud in Germany.