Tips to Protect Yourself from Credit Card Fraud

Updated on: 05 Apr 2023 // 4 min read // Credit Cards
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You are relaxing on a Sunday afternoon and you receive an SMS about a debit of $1 on your Credit Card. It sends the alarm bells ringing. You have never used the card for making international purchases. No one from your house stays abroad. From where did this debit entry originate? What should you do now?

It is a typical case of a Credit Card fraud. Do not disregard the SMS thinking that the debit is a small one. The fraudster who has used your card details to debit $1 will not waste time to clean up your account. There are many more ways of defrauding people with the unauthorized use of their Credit Cards. We shall discuss some more modus operandi and tips for protection.

Different Kinds of Credit Card Frauds

Physical Theft of the Card

The easiest way to commit Credit Card fraud is to steal your card and use it to make purchases in your name. It is one of the oldest methods as well. Today, the improvement in technology has resulted in fraudsters employing innovative ways of committing Credit Card frauds. They do not need to touch your card for procuring your details. You are providing the hackers with a minefield of information through your social media accounts. Sharing vital information on social media is one way of divulging your personal details to the hackers. Using this information, they hack into your credit card accounts and commit fraud.

Use of Skimmer

Another type of fraud is by the use of the skimmer device. The skimmer is a small plastic attachment that the fraudsters insert into the ATM card slots. These skimmers capture the personal information present on the magnetic strip of the Credit Card. They install secret cameras to spy on the PIN codes you type. Using this information, they clone your card and steal money from your account.

Phishing Websites

Phishing is another common activity leading to Credit Card frauds. Fraudsters create phishing websites that resemble the official website of your bank in almost all respects. It prompts you to trust the site, and you divulge your Credit Card information without knowing that you are compromising your security.

Procuring Information Through Phones

Fraudsters are brilliant people. They have a knack for convincing people to divulge information over the phone. They randomly contact people and convince them that they represent your bank. They start off by speaking about Credit Card Offers Online. They seek secret details of your credit card like CVV number, date of expiry and so on. Many people unknowingly part with such information thereby resulting in fraud.

Tips to Avoid Getting Trapped in a Credit Card Fraud

  1. Protect your Credit Card and ensure that nobody has any access to it. It is better to leave it at home when you do not have any plans to use it.
  2. Be careful while exchanging information on the social media channels. Do not divulge information like your date of birth, mother’s maiden name, and such similar sensitive information. Fraudsters use such information to procure details from your bank.
  3. Be careful when you use the Credit Cards or debit cards at ATMs and other Point of Sales (POS) outlets. If you observe something suspicious like an extra bit of plastic hanging out of the card slot machine, refrain from using the card in that machine.
  4. Never use internet cafes and public Wi-Fi to carry out your banking transactions. Software programs like Keylogger can record your keystrokes in the background. Unscrupulous elements can use this information to commit Credit Card fraud.
  5. Always be careful while using your card in public places. You never know who is watching you. Do not disclose details like CVV number or PIN codes to anyone.
  6. Be cautious when you visit your bank’s website. Accessing the bank website from unknown links can prove dangerous. Type out the website address of your bank on the search bar. Look for the “https” feature on your bank’s webpage.
  7. Remember that banks never phone people to procure any private information. Hence, beware of people that pretend to speak from your bank.
  8. Register your preference for e-statements rather than the hard copies. Thieves can access your card details from these hard copies.

What Do You Do in Case You are a Victim of a Credit Card Fraud?

  1. Contact your Credit Card issuing bank or company and block the card immediately. You can also block the card online.
  2. In case of loss of card, register a complaint with the local police station. Obtain the FIR and approach your bank for the issuance of a duplicate Credit Card.

Also Read:  7 Useful Tips to Manage Your Credit Card Easily

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