We all enjoy using our credit cards for shopping, travel, and online transactions and therefore it becomes imperative that we are aware of credit card frauds and scams.
Banks and credit card companies have been working proactively to offer increased security on your credit cards, still, hackers always find some innovative way to steal your card details and make illegal transactions.
According to an ASSOCHAM-Mahindra SSG report, in 2011, about 13,301 cyber-crimes were reported, which rose to 300,000 in 2015, out of which credit card fraud was among the top listed crimes.
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One common target for credit card fraud is the ATM machines. Fraudsters have been known to use various advanced technological tools to steal your card details and make illegal transactions. Fraudsters can steal your data by installing a spy camera near the card reader and collect your pin to make duplicate cards and withdraw money from other ATMs.
Another likely target for credit card fraudsters is the Point of Sale (POS) terminals at petrol pumps and shopping centers. If you see anything attached on the POS machine, raise a red flag. Make sure the card is swiped in your presence.
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, a cyber-security company, credit card skimming may happen when we slide our debit or credit card into a compromised machine. The card skimmer reads the magnetic strip on the card and stores the card number. It can capture your pin, too, if a fake keypad is placed on top of the original keypad. The fraudster can later either sell or use your card for online transactions. LifeLock Here's how you can make the most of your credit card reward points
With online businesses, merchants and retailers are often at the forefront of managing such online credit card frauds. These fraudsters face a unique challenge as all the purchases are made as ‘card not present’.
When the ‘bill to’ and the ‘ship to’ addresses are different and the customer is asking for faster shipping, there might be a chance of fraud involved in it. However, it may not be an accurate sign of fraudulent case as honest customers might be sending gifts. But for large orders that fit this profile, always call and try to match the phone number as well.
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Phishing is another way how fraudsters pretend to represent legitimate companies, contact consumers and extract their credit card information. According to
creditcards.com, phishing starts when a consumer receives an official-looking e-mail from a business. The e-mail, in every aspect, looks like one from a trusted source, such as a bank or e-Bay. The fraudulent e-mail will come with all of the right wording and company logos and will typically profess to be doing a security check, requiring the customer to verify private information. Make sure you do not divulge any of your personal information or your credit card details over the e-mail or by call to the person seeking confidential details. Here’s how you can prevent credit card frauds: Do not share your credit card details, PIN, and CVV number mentioned on the back side of the card with anyone. Make sure you sign on the back side of the card at the ‘Sign’ place as soon as you receive it. While receiving a credit card check for any break in the seal of the envelope. Make sure you are carrying out online transactions with trusted websites. Do not hand over your card to anybody else and closely monitor your bank account. In case of fraud, here’s what you can do:
Immediately inform the bank, irrespective of the amount that has been stolen from your bank. In case you are calling the customer care, make a note of the executive’s name and reference number. Make sure you keep a copy of the complaint letter, in case you are submitting a letter. Nowadays, banks are shifting towards more sophisticated cards by adopting new features and cyber-security measures to bring down fraud losses. They scrutinize the unusual transactions in the account and crosscheck with you. If you don't receive any reply from the bank, even after lodging a complaint, you can approach the ombudsman at the bank. Check the jurisdiction under which you fall and once you are aware of that you can send your letter via fax or mail. Generally, the bank ombudsman gives a ruling within 30 days. If the bank has rejected your complaint and the ruling of the ombudsman does not satisfy you, you can approach the appellate authority who is the governor of Reserve Bank of India (RBI). You can also register a formal complaint or an FIR at the police station and directly move to the court.