How to Prevent Credit Card Frauds

Different Types of Credit Card Frauds

The following are the different types of credit card frauds you may encounter:

• Phishing

Phishing involves scammers pretending to be insurance agents or phone marketers to trick you into giving them your card information. They also send emails that appear to be from legitimate banks or financial institutions.

When you click on the link, you are taken to a fake website where you are asked to provide your details.

• Skimming Card Information

Scammers use a device called a skimmer to steal your card details from the magnetic strip present on the back of the card. They attach skimmers to credit card readers at retail stores, ATMs, gas stations, and other businesses.

Once they get your details, they either sell them to other scammers or use them themselves to make purchases on your card.

• Application Fraud

Scammers use stolen personal information, like your name, address, birthday, and social security number, to apply for credit cards in your name.

You might not notice this fraud until you apply for credit yourself or check your credit report. Although you will not be responsible for the fraudulent charges due to card protection, this kind of fraud can lower your credit score.

• Misplaced or Stolen Cards

A very common form of credit card fraud occurs when you lose your card or someone steals it. A thief might take the card during a robbery or steal it from an unsecured place.

Scammers may also dig through discarded bills or documents to find credit card details. They then use the card details to commit fraud until you cancel the card.

• SIM Swapping

Fraudsters contact your mobile operator, pretending to be you, and request a duplicate SIM card. They then deactivate your original SIM card. They can then receive OTPs and complete online transactions using your information. 

How to Prevent Credit Card Frauds

Here are some essential tips you can consider to prevent credit card fraud in India:

• To avoid skimming, be cautious of card readers and consider using chip-based cards, which are more secure than those with magnetic strips.
• Review your account statements regularly for unauthorised transactions. If you see anything unfamiliar, contact your bank or credit card company immediately.
• You should always shred duplicate documents that contain your sensitive information before discarding them to avoid credit card scams. 
• When shopping online, ensure the website is secure and has a valid SSL certificate. Avoid clicking on links in emails or messages that request your credit card details.
• Never share your card number, CVV, or PIN via text message or email. Memorise this information and change your PIN periodically.

The Bottomline

As credit card usage rises, protecting yourself from fraud is crucial. After learning about common credit card frauds, you can stay safe by regularly checking your transactions, keeping your personal information secure, and quickly reporting any suspicious activity to your bank.

These steps will help you avoid falling victim to fraudulent practices.