 TITLE: What Is Credit Fraud? CONTENT: How Does Credit Fraud Happen?\n-----------------------------\nCredit fraud occurs when thieves use personal information belonging to one or more consumers to open loans or credit card accounts, to buy goods or services, or to secure cash advances—and then disappear without ever paying a dime. It can also happen when fraudsters exploit existing accounts by gaining access to credit card information and using it to make purchases without the victim's knowledge or consent.\nAccording to the most recent available data from credit card industry publication The Nilson Report, losses from credit fraud were nearly $28 billion in 2018, with U.S. losses totaling nearly $9.5 billion.\nConsumers, businesses and credit users in general suffer as consumer information is compromised for criminal gain. Additionally, lenders may charge higher fees and interest rates to cover the costs of fraud-prevention and fraud management programs. END