Credit cards have become very convenient as they are easy to carry and use. In general and in many ways, it is safer and more secure to carry a credit card while traveling than to carry a lot of cash. However, fraudsters also realize that it is easy to steal a credit card or its details, easier than cash. Thus credit card fraud has become common, as one credit card fraudster could do online shopping worth lakhs of rupees. Therefore we need to watch out for these frauds.
Common Credit Card Frauds
Generally, they are phishing/vishing and hacking. You might have read in newspapers how customer data got hacked from some merchants. This stolen data contains credit card information that hackers use to do online frauds. There is not much we can do about hackers stealing our information from other places. It does not happen often and is not as easy. However, there are various means in place, and authorities take the necessary action to prevent or stem such thefts and provide remedies to the victims.
In the case of credit cards phishing/vishing happens when scamsters/fraudsters send you text or WhatsApp messages, or email links asking you to update your credit card information. They may pose as a financial institution, insurance provider, seller, buyer, etc. They capture your credit card details and then use them for online fraud.
How to avoid—Do not click on any links asking you to update any personal, banking, or credit card-related information. There is a chance they may call you and ask you to do it within x time, saying your card/account will get blocked if you don’t. They usually take advantage of your vulnerability, panic, and confusion. So, the key is to take deep breaths, tell them you will get this checked, and do it later. You could then get in touch with your financial institution who has issued the credit card, and clarify and confirm to take necessary action.
Some Lesser-known Credit Cards Frauds
1 Skimming– This type of fraud is also called Point of Sale (POS) fraud, as in this method, scamsters use a small skimming device to capture your credit card details. This device will attached to the credit card swapping device at the POS where you make your purchase. This is rather rare now, as it means that some store employees would have to be involved. They capture credit card information to create fake credit cards for fraud or sell the fake card to malicious people who misuse the card.
How to avoid– When your card is being swiped, please take a look at the swiping device. While entering your PIN, cover the device with your hand. Please ensure you are using the credit card with a chip, and not with a magnetic strip.
2 Dumpster Diving– Sometimes little actions from our side without our knowledge can cause a lot of harm. When we throw away our credit card slips and bills as is, fraudsters pick these up and use the details to try and scam us. These kinds of scam is also called looking for ‘treasure from trash’. This method is not used only for credit card frauds, but for picking up a lot of information about people and organizations to impersonate them.
How to avoid– Ensure you tear up any bills or credit card charge slips before throwing them away.
3 Keystroke capturing– Without your knowing, scamsters may get you to download some software that captures your keystrokes while you enter sensitive financial information. This kind of software records all keystrokes from your system/device and thus they get your card details as well as PIN. The complete information helps them to commit fraud.
How to avoid– There are two ways to avoid this. Ensure you avoid phishing messages and never click on any link to download any software/app or provide any kind of information unless you are fully sure about the sender. The second is to use virtual keyboards while doing online transactions to ensure that your keyboard stroke won’t help fraudsters.
4 SIM Swap– In this fraud, the scamster will call the telephone service provider pretending to be you and ask for a duplicate SIM and get your original SIM blocked. Then, they use the duplicate SIM to get your OTPs and carry fraudulent transactions by impersonating you.
How to avoid- If you suspect that your SIM is blocked suddenly without reason, immediately follow it up and get it rectified. If you have a card linked to that number, check if any transactions have happened and do the needful. Also, ensure that credit card transactions are also sent to your registered e-mail ID. That way you are double sure about the transactions done on your card.
Some common tips
- Immediately report any stolen or misplaced card and get it blocked. You may also need to file a police complaint as well.
- Report any suspicious activity linked to your card immediately and follow the actions suggested by the authorities to rectify things.
- Use reliable antivirus software on your system to help detect suspicious links and sites that try and scam you.
- Memorise your CVV and scratch it on the card to avoid misuse in any case of theft or misplacing.
Hope this information will be useful to you.
Waiting for your feedback on this blog.
Anil Malik
Mumbai, India
15th February 2024