While transacting with your credit card can be quick and easy, it is important to keep your credit card safe and secure. Failing to do so can result in you becoming the victim of credit card fraud. A credit card fraud is a form of identity theft, wherein a scammer uses your physical credit card or your card details, i.e., your credit card PIN and number, to transact without your knowledge.
To ensure credit card fraud prevention, it is important to be aware of the various ways in which card scammers try to steal your money. Some examples of credit card fraud are mentioned below.
This type of credit card fraud occurs when you swipe your card for offline transactions. The Point-of-Sale (PoS) device is modified for such frauds and a small skimming device is attached to it. The device scans and stores the information on the credit card when swiped to complete the transaction. Like PoS devices, ATM card slots too may have such skimming devices attached to them along with a small camera to capture your credit card details. Watch out for such suspicious equipment and notify the authorities if you’re doubtful.
Fraudsters can send false links as official bank communication to scam you. As soon you click on the bait, your credit card information becomes accessible to them. This is called phishing. A similar fraud known as voice phishing, or vishing, is common too. Here, fraudsters impersonate bank officials over the phone and ask you to verify your identity with your credit card details, etc. When you share the requested details, your credit card information becomes available to them. They may even ask for OTPs in a bid to validate illegitimate transactions they are trying to make through your card.
This credit card fraud occurs when you discard credit card bills or documents without destroying them. Thieves or hackers retrieve the information from these documents and can access your credit card account.
This type of credit card (CC) fraud occurs when scammers impersonate you to obtain a credit card. They can use stolen documents and personal information to validate the claim. Usually, banks have strict credit card application processes to detect fraud, and they conduct a thorough background check to resolve such threats. However, as scammers can use this information to make changes to your existing information too, it is important to be aware of such common credit card scams to keep your account safe.
This is one of the latest credit card frauds that leverages online transactions. Here, malicious software is used to collect your credit card details. The software gets automatically downloaded and installed on your system as soon as you click on the suspicious link. It then records every key you press on the system to capture your financial (card) details.
If your credit card is lost or stolen, the chances of you becoming a victim of credit card fraud is very high if it falls into the wrong hands.
A credit card scam can impact your finances in several ways. Some of the common issues you might face include:
Each bank has a credit card fraud detection system in place to protect you from identity theft. However, if you notice a fraud credit card transaction before the bank does, it is critical that you report it and block the card. There are several ways of doing so:
With credit card scams becoming more and more prevalent, it is critical for you to take the necessary precautions to avoid becoming a victim of fraud. Here are some ways to protect your credit card information:
With all these precautions in place, you can go about using your credit card worry-free. In case you do not have one, you can also apply for credit card easily from the Finserv MARKETS website, which offers the best credit cards from some of the most popular banks. Apply today!
You can be a victim of credit card fraud if your card information falls into the wrong hands. The common types of credit card frauds are skimming, dumpster diving, phishing, vishing, keyboard capturing, and card application scams.
Credit card fraud can have a massive impact on your finances. If left undetected, your credit card score can take a bad hit, which will reduce your chances of getting access to credit in the future.
Every fraudulent transaction made on your card gets added to your credit card statement. If you fail to clear the bill, you are charged late fees and interest on the outstanding amount. Also, your credit utilization ratio on the card takes a hit, bringing down your borrowing limit and, eventually, your credit score. A low credit score reflects negatively on your credit profile and reduces your chances of getting access to credit in the future.
Due to the increase in the number of credit card scams of late, banks today have efficient credit card fraud detection systems in place to identify and protect you from credit card identity theft.