Stolen or misplaced credit cards may fall prey to fraudulent transactions. Rely on these straightforward methods to safeguard yourself from such scenarios.
Credit card fraud occurs when someone uses your credit card to make unauthorised transactions. This can happen if your card is lost or stolen or if someone gains access to your credit card information.
This makes it important to learn how to protect yourself from credit card fraud. You can reduce the chances of falling prey to fraud through some simple ways.
From storing and sharing important details related to your card carefully to using virtual credit cards for online payments, there is a lot you can do. Here are 10 smart ways as to how you can protect yourself against credit card fraud:
1.Protect Crucial Card Details
Never share your banking details, such as the credit card PIN or net banking passwords, with anyone. Keep these details private, and do not disclose them to family, friends, or strangers via call, message, or email. Use strong passwords that would be difficult for scammers to crack.
2.Keep the Credit Card Safe
Store your credit card in a secure place, such as in a pocket or zip within your wallet, where others cannot access it easily. Sign the card as soon as you receive it for added security. Keep it out of sight to avoid pickpockets from getting hold of it or someone capturing a digital image of it.
Regularly check your card, especially if you have not used it for some time, to ensure you have not misplaced it.
3.Exercise Caution When Paying Online
Using a virtual credit card can help as it masks your credit card number and other details when you transact online. This helps protect vital information from being captured by scammers and fraudsters.
Another way to protect yourself is to ensure that the website you are paying through has the lock symbol indicating security and is not a fake portal masquerading as a trusted brand. These portals may often capture your credit card information and use it to commit fraud.
In addition, ensure you are alert to online scams that claim to offer unbelievable prizes, investment opportunities, or fake deliveries via emails or chat messages. Sharing your card details in such cases can lead to further scams and financial loss.
4.Don’t Use the Same Card to Automate Payments
Using the same card for recurring payments, such as subscription renewals and utility bill payments, increases the risk of fraud. By using separate cards for each service, you limit the exposure of your card details.
5.Use Mobile Wallets or UPI to Pay
Adding funds to a mobile wallet from your credit card makes the payment process easier and reduces the risk of fraud. This prevents sharing your card details on multiple websites.
Today, you can also use RuPay credit cards and pay using just your smartphone via UPI. This helps boost safety. It also helps you avoid carrying the card with you, reducing the risk of theft.
6.Watch Out for Virus/Phishing
Phishing occurs when fraudsters trick you into sharing credit card details over call, email, or SMS via a link. They may use logos or content that resembles legitimate banking institutions or other service providers to gain your trust.
When you click the link or call the number, malware may be installed into your device or you may be lured to share your card information. It may record your keystrokes to capture sensitive data. Be cautious and avoid clicking on such links or providing your card details to suspicious sources.
7.Set Lower Limits for Transactions
Credit card fraud can lead to significant losses, especially with higher payment limits. So set lower limits in your credit card account for:
Domestic online transactions
International online transactions
ATM cash withdrawals
PoS transactions
Contactless payments
International transactions
While this will not prevent fraud, it can help reduce the impact of fraudulent transactions.
8.Monitor Your Credit Card Accounts
Signing up to receive regular notifications via SMS or mobile banking is key. It can help you notice any fraudulent transactions and report them within 3 days, which limits your liability.
Make it a habit to check your statement every month. By tracking all recorded transactions, you can spot any suspicious activity and block the card if needed.
9.Report Lost or Stolen Credit Cards Immediately
Most scams occur when you fail to block your card after it is lost or stolen, leading to unauthorised transactions. Ensure you act quickly if you notice that you no longer have your card.
10.Use Tap-to-Pay Features
Handing over your card may often lead to fraud through PoS devices or terminals. By using tap-to-pay, you can avoid this and keep your card details secure.
One of the most common ways to protect yourself from credit card theft is to keep your card safe. Keep it securely in a wallet or link it to your UPI ID so you can use your mobile phone instead of carrying the card with you. Also, regularly check your credit card statement for any unusual activity.
If fraud occurs due to your negligence, such as sharing your PIN or OTP, you will have to bear the loss until you report it. Inform the bank immediately and get an acknowledgement. In India, the bank has 90 days to resolve the complaint.
If the fraud continues after you have reported it, the bank will reimburse the amount, following the RBI’s guidelines and its own policies.
If your credit card is lost or stolen, immediately report this to the credit card company. The issuer will block your card to prevent any future loss.
To detect credit card fraud, regularly review your statements for any unauthorised transactions. Be cautious of suspicious activity, such as receiving messages via SMS asking you to verify an OTP or provide your CVV for an unauthorised transaction.