How to Prevent Credit Card Fraud?

The increasing use of credit cards has made our life easy with instant payment without the availability of cash in hand. With the demand, credit card fraud is also increasing, and one needs to be vigilant about it. Also, the good news is that there are various ways to prevent fraud by adding multiple layers of protection to your account. In this blog, you will understand credit card fraud and various preventive measures to avoid it.

What is Credit Card Fraud?

Card fraud happens when a scammer uses your PIN and card number for unauthorized financial transactions from your account without your consent. These kinds of scams have become quite common, and fraudsters use card details for unethical transactions. However, you can protect your card by opting for security options to ensure the safety of transactions.

What are the types of Credit Card Fraud?

The credit card scam can be divided into four types, which are mentioned below:

The stolen or lost card is used without your consent.
The cards get copied or cloned while swapping through a machine to make a duplicate card. It is known as a skimmed card.
The card details such as number, name, address, and date of birth are stolen online via email scams and sold on the phone or the internet.
If someone applies for a credit card without your knowledge is another type of scam.

Who is responsible for Credit Card Fraud?

It would be best if you got yourself covered to claim the entire amount lost due to credit card fraud. Also, you will not be liable for illegal transactions done through credit cards. However, there are two scenarios in which you will not get a claim: if the card gets stolen or lost and you need to pay attention to securing the card information.

The below mentioned are certain circumstances where your bank can prove your negligence:

If it has been over a year of the credit card scam and you have yet to report it to the bank authorities.
The financial institution proves that you authorized the transaction.
Your action shows that payment was unauthorized, but when you know that it was only you.
The card details, such as PIN or password, were not protected.

How to detect Credit Card Fraud?

Credit card fraud detection can be evaluated regularly by analyzing if someone has used your credit card information. Here, we are discussing certain ways to detect fraud.

Keep a tab on the bank statement- If you find any undesired transaction in your bank account, then call your bank and report the same.
Check credit card report- Make a habit of checking your credit card report at least once a month. If you notice suspicious activity, report it to the concerned authority.
Take the matter to the credit card issuer if you are expecting a post and not receiving it. Also, be attentive if you are receiving any random posts.
Ask for alert messages from your bank when any transaction is done. This way, you can track payments through credit cards and prevent card fraud.
In case the card gets declined, check with your card issuer.
If the bank tells you that you have reached the limit and the card is declined for further transactions. It means that the card is used by someone else without your knowledge.

How to Report Credit Card Fraud?

Credit card fraud can be reported in the following ways:

You can call your credit card company and report if you witness any unauthorized transaction from your credit card. The company will reimburse your money if you report the fraud immediately.
You can report credit card scammers' actions to the concerned government authority or cybercrime cell.
Also, contact and report if someone has applied for the new credit card by your name without your consent.
Also, report to the cybercrime cell if your post is redirected or stolen
Report an FIR in case of stolen or lost documents such as an Aadhaar card, PAN card, driving license, and passport.

What is Credit Card Security and its significance?

Credit card security can manage transactions carried by your credit card. The safety features offer the benefit of card blockage if you suspect any fraud or unauthorized transaction. The safety features can prevent your credit card information. Also, your alertness can prevent card fraud.

Ways to perform Credit Card Fraud

Your credit card details can be stolen through phishing attacks, unsecure websites, and credit card scams. Credit card scammers can open new accounts, spend money from your credit card, apply for new cards in your name, and commit loan fraud. Hence, the best way is to detect and prevent fraud immediately.

Mail theft- Scammers look for documents like statements that convey information about the card details. If you notice that mail stops arriving, it could be a mail theft case.
Physical theft- The thieves can steal the credit card from your purse. They can either do an online transaction or go for card cloning.
Phishing attacks- The fraudsters send text messages, phishing emails and phone calls saying they are from your bank and ask to convey financial details.
Card skimming- It can be done by installing skimmers at the ATMs. While using the card, it records your PIN and number, and the information is sent to the thieves.
Malware and spyware- Cyber attacks such as attachments or links can infect your smart devices. These viruses scan your device to steal personal and financial information.
Intercepting Wi-Fi- The public network is easy to hack, and your personal or financial details, passwords, and account numbers can be easily stolen.
Data breaches- These days, we are witnessing multiple data breaches wherein personal information is stolen and sold to the dark web.

How to prevent and avoid Credit Card Fraud?

Numerous actions can be taken to prevent credit card fraud. Some of these are listed below:

Keep the credit card with you while doing a transaction and only allow people to handle it if it is tempered.
Don't pay attention to unwanted emails, phone calls, and messages.
Don't share credit card information like PIN, password, and login details.
Cut the old credit card and destroy the magnetic strip and chip properly.
Use strong passwords and avoid using the same password for multiple accounts. Change your password regularly.
Avoid using public Wi-Fi for transactions.
Always use secure websites; a website starting with HTTPS is more reliable than HTTP.
Log out from the bank accounts if you are using a public computer.
Don't share personal details like your date of birth on your social media accounts.

Conclusion on Credit Card Fraud

These quick tips can help you to prevent credit card fraud and make safe transactions. Also, you must keep your credit card secure by not sharing card details with any second person. Be aware of the malware and phishing attacks, and don't open suspicious links on your devices. This blog will help you prevent your card from card skimming or cloning. Moreover, if you observe any unauthorized transaction, report it immediately to your bank or credit card issuer.

FAQS on Credit Card Fraud

What is Online Fraud?

The fraud committed by using the internet involves financial fraud, online scams, and credit card scammers buying products online without your knowledge. These scams are often done through offering employment opportunities, credit card or loan approval, phishing, lottery scams and free vacation offers.

What is PAN Card Fraud?

A PAN card is issued by the Income Tax department that is often linked to your bank account and credit card. If someone steals the information of a PAN card and takes a loan or does other fraud by using the card is PAN Card fraud. It can be prevented by securing your information and not downloading or clicking suspicious links and messages.

What are the Steps to Prevent Fraud?

You can prevent Credit card and other online fraud by keeping a tab on your online details, bank accounts, and credit report, and report suspicious activity on time. Don't share your personal and financial details with others, and implement fraud tools on your devices. Also, don't open or download any suspicious links.

What is UPI Fraud, and How to prevent UPI Fraud?

The UPI address is unique to every user, and UPI payments have the complete record of transactions through saving accounts, debit cards or net banking. UPI frauds are increasing and stealing information through payment requests, phishing and using OTP or PIN. You can prevent UPI fraud by scanning carefully, not sharing OTP or PIN and beware of suspicious payment requests.

What is CPP & What are the Benefits of CPP?

CPP is a card protection plan to prevent fraud and stop unauthorized transactions. There are various benefits as you can protect your card from loss, theft and fraud. So, you must enrol yourself today and opt for a card protection plan to stop credit card fraud.