Credit cards in the wrong hands can wreak havoc on homeowners. Unfortunately, with the increasing use of digital technology, credit card scams are becoming more and more common. Scammers and cybercriminals are finding more and more ways to commit this type of fraud. Although credit card fraud can happen with anyone who uses it, there are several ways you can avoid falling victim. Let's take a deeper look at what this fraud is before we can move on to ways to prevent it from happening.ContentsWhat is Online Card Fraud?Preventing Different Types of Credit FraudCard Missing (CNP)SkimmingLost and Stolen CardApplication FraudKey Points to Remember
Online card fraud refers to the misuse of credit or debit cards by stealing owner details. Due to the growing trend of online shopping, scammers and cyber criminals have access to user details which they can use to their advantage. Many scammers don't even physically need the card to commit the fraud. Plus, they don't even require you to physically slip one on. Scary as it sounds, it's all true and it's the reason credit card theft is becoming so common.
Let's look at some common types of credit card scams, ways to prevent them, and what to do if you've already been scammed.
One of the most common types of fraud is through cardless transactions. As the name suggests, the scammer does not physically need the card to commit this type of fraud. All they need are the contact details of the victim, which they can get when someone does an online operation. The growth of the e-commerce industry is a major contributor to the increase in cases of this type of fraud.
CNP fraud is a big threat to buyers and sellers. Merchants are advised to beware of this fraud by monitoring for any unusual activity on the site. They can also develop a more proactive approach by adding an additional layer of authentication. This way, the scammers will have to undergo another layer of security which could discourage them from committing fraud. On the other hand, shoppers should be skeptical about entering their card details and should only choose legitimate platforms for online shopping.
Skimming fraud occurs when a credit card device or ATM is programmed to copy credit card details onto a magnetic stripe and then uses it to counterfeit the credit card. Alarmingly, skimming can also take place if someone walks past you with a credit card skimming machine. This type of fraud requires the user's PIN.
A tampered ATM will most likely have a micro-camera installed inside which will write down the PIN code. Similarly, if the activity is carried out using a credit card machine at a terminal, the manager will attempt to read the PIN code being entered.
To avoid such fraud, always hide the keyboard when entering your PIN code. If you are in a public place, you should keep your card in the inside pockets of your wallet. Also, if you suspect an ATM is tampered with, you should report it to local authorities immediately.
As the title suggests, this type of fraud will only occur on cards that have been lost or stolen. If you've suddenly lost your card or misplaced it, don't wait for the worst to happen – contact your credit card company immediately and have your card blocked. If your card falls into the wrong hands, it could have disastrous consequences.
Fortunately, many banks have the possibility integrated into the bank's mobile application to immediately block the card in the event of loss or theft. This made it easier for users to take action. Also, if you've decided to stop using a credit card, don't just throw it in the trash. You must cut it into small pieces so that none of the information on the card can be leaked to criminals.
App fraud is one of the oldest types of fraud that scammers have committed over the years. The person who commits this fraud assumes the identity of another person and receives their credit cards. They even use a temporary mailing address to receive these cards at their doorstep. However, banks have now raised their security bars and have regular monitors to confirm their customers' addresses. Processes in banks have become increasingly thorough to ensure that account accessories reach the right person.
The best way to protect yourself from a scam is to be vigilant when it comes to online transactions and keep your credit card in a safe place. If you suspect suspicious activity, do not hesitate and notify your credit card company. Online credit card fraud can happen anywhere and anytime, but with the right measures, you can mitigate the impact.