Credit Card Scams: Things To Be Aware Of And How To Keep Yourself Protected From Fraud

Credit card fraud has become prevalent these days that can have a disastrous effect on your financial well-being.

So, if you are a cardholder, here’s how you can protect your information, and respond appropriately if you fall victim to it.

Common Types of Credit Card Scams

Here are a few common type of credit card scams.

1. Card Not Present Fraud (CNP): This happens when a fraudster makes transactions online or over the phone without a real card, using credit card information that has been stolen from the original cardholder.

2. Account Takeover Fraud: In this scenario, fraudsters gain access to a victim’s existing credit card account by obtaining personal information, allowing them to make unauthorised purchases or change account details.

3. Identity Theft: Here, the fraudsters set up fake credit card accounts in the victim’s name by using stolen personal information.

4. Counterfeit Card Fraud: In this fraud, the stolen information from real credit cards is used to create fictitious credit cards. Fraudsters use these counterfeit or cloned cards to make unauthorised transactions.

How To Spot Credit Card Fraud

Here are a few ways to spot credit card scams.

1. Unfamiliar Charges On Statements: If your monthly credit card statement includes charges for items or services that were not received, it is imperative to closely review these transactions. As soon as you realise of any illegal charges, you should notify the card issuer.

2. Notifications of Large Purchases: If you get a text or email notice about a big transaction that you didn’t approve of, it is a potential fraud. Call up your card issuer without delay and inform them of the fraud without delay.

3. Sudden Changes In Credit Limit: A sudden decrease in your credit limit or an unexpected notification about it may signal unauthorised activity. Contact the credit card issuer to inquire about any such changes.

4. Requests for Sensitive Information: When someone calls, texts or sends an email asking you to verify your credit card information, or provide your CVV, or OTP, then proceed with caution. Never reply to unsolicited mails seeking personal information. You should end the call and notify your bank about the questionable contact.

5. Unexpected Arrival of a New Card: If you receive a new credit card without having applied for one, it could be a case of someone having created a fake account in your name. Contact the card issuer immediately to report the issue and have the card blocked. Send a mail as well on their official id as proof of you having informed the bank of your conversation with them to have the card blocked.

Strategies To Safeguard Against Credit Card Fraud

Here are a few ways in which you can protect your credit card information.

1. Protect Your Personal Documents: Properly destroy copies of your card related documents, such as PIN, account statements, card, and letters from the card issuer, which could contain your card number, name, phone and other communication details, before disposing them. This is essential to prevent identity theft.

2. Create Robust Passwords: Create secure passwords for your online accounts that use a mix of capital and lowercase letters, digits, and special characters. Also change your passwords at regular intervals and do not use the same password across multiple platforms.

3. Conduct Regular Account Checks: Frequently review your bank and credit card statements to identify any unfamiliar transactions. Setting up alerts for transactions can also help you monitor your accounts and quickly spot any unusual activity.

4. Immediately Report Lost Or Stolen Cards: You should promptly inform your bank or card issuer if your credit card is lost or stolen. Taking quick action can assist in stopping illegal charges and guarantee that your account is shielded from future fraud.

What to Do If You Fall Victim to Credit Card Fraud?

• If you become a victim of credit card fraud, react promptly to reduce the impact of the financial damage.

• As a first, immediately, contact your bank or card issuer to report the fraudulent charges and block your card to prevent further unauthorised transactions. Write a mail to them and take an acknowledgement of the same.

• Also consider freezing your credit reports to stop new accounts from being started in your name.

• Lodge a formal complaint with the police.

• Lastly, review your recent statements for any additional unauthorised charges and keep your card issuer or bank apprised of any development.

• Regularly check your credit reports and consider enrolling in a credit monitoring service which can help you stay alert and informed about any unusual activity on your accounts.