As we are becoming increasingly dependent on plastic money, credit card fraud is proving to be extremely harmful. Credit card frauds happen as fraudsters copy your card details through a skimmer or through counterfeiting. However, banks have taken multiple steps to prevent credit card fraud. Yet, we tend to neglect the basic steps to prevent these frauds in future.
Consumer education is a great strategy where people can self-educate and help avoid these fraudulent activities. This piece provides you with some simple steps you can follow to prevent credit card fraud.
When a scammer uses your credit card details and PIN to conduct financial transactions in your bank account illegally, without your knowledge, it is credit card fraud. These frauds are segmented as identity thefts and are a common issue these days.
Such events, therefore, require credit card security. However, if you opt for credit card security, it ensures your credit card safety and saves you from unwanted transactions.
Here are the 10 best ways to prevent credit card theft:
Moreover, whenever you travel to international countries, try not to carry all your cards while venturing out. Lock the unnecessary ones in your suitcase or inside your bag properly. If your credit card is stolen there, report it immediately to your issuer. This is an effective way to prevent credit card fraud as it will reduce any pre-empt fraudulent charges you might face.
By now, you already know most of the ways to prevent credit card fraud. Yet there are certain measures you need to take to ensure online and mobile safety.
So, these are some of the online credit card fraud prevention techniques you can keep in mind. Now, let’s learn how credit card fraud can occur.
There are several ways through which skimmers conduct credit card fraud. Although the internet and application-based banking help people enjoy banking facilities at home, they are risky and initiate fraud. Here are the ways how credit card fraud might happen -
One of the easiest ways your credit card details get transferred to an unwanted individual is through theft. To ensure the security of your card, you must keep your card safely in your wallet. Do not initiate a credit card purchase unless necessary.
Your credit card can accidentally fall among the many cards you keep in your wallet. This can cause someone else to pick it up and never return it.
Skimming is a dangerous way of stealing your credit card details these days. Expert skimmers use a card skimmer device on the credit card swiping machine on PoS or Point of Sale counters. These devices scan and store your credit card information as you complete your transaction through a credit card swipe.
This way, all the details get automatically read by these people when you are swiping your credit card for the original purchase. This is a way where the skimmer does not require your card and yet steals all information. When your fraudsters skim your credit card information, you will not know about it unless banks accuse you of charges that you never made.
Skimmers keep these devices on ATM card slots to clone data. They keep a hidden camera on the keypad to capture your PIN.
Dumpster diving involves credit card fraudsters rooting through your trash that might include access codes or passwords noted down. They gain information from your cell phone lists or calendar notes to access all your data. Also, they gather information when you discard documents, bank receipts, and bills with full credit card details written on them.
There are many websites and stores that you regularly shop that offer to save your card for their convenience. While this can help you in further transactions, it also threatens your safety since hackers who access company databases can steal the saved information from your credit card.
Phishing involves personally soliciting card details from you by impersonating official communication from banks. This acts as a trick or bait for you and tempts you to click on false links. This takes you to so-called secure websites.
As you enter your card details, credit card fraudsters can access data. They ask you to share an OTP to verify your card, avail bonus points, etc.
Since most transactions happen online, hackers use keystroke logging systems via malicious software to steal credit card data. This happens when you have accidentally clicked on a suspicious link and unknowingly installed the malicious software in your system.
This dangerous software captures all PINs and personal data that you enter via a keyboard on your system. So, stealing PIN and card details become easy while you are unable to know anything.
Public places such as airports and coffee shops use public Wi-Fi, which is not safe. Hackers use MITM or 'man-in-the-middle' attacks to interfere with your connection and steal data that you enter. This includes all PIN numbers and credit card details.
As per recent studies, data breaching has increased to almost 68% from 2020 to 2021. There are reports that say that fraudsters have hacked numerous accounts through social media since people are most active there. Hackers can access numerous credit card data through a single data breach on Dark Web.
A recent type of credit card hack, carding is a process where a fraudster steals your credit card first. Then they use this credit card to purchase gift cards or recharge prepaid cards. Carding involves the fraudster purchasing gift cards. Then, they sell these products for cash to other people. Credit card hackers who use carding systems to steal data are known as 'carders'.
Now, you have a clear idea about how to prevent credit card fraud. A careful attitude will prevent you from saving your details from such hackers.
In this regard, treating your credit card just like any other valuable asset is essential. Try to familiarise yourself with all the security features on your card. Use your card with utmost care and avoid carrying too many of them while travelling. The best way to prevent credit card fraud is to choose debit cards for a transaction or avail cash payments wherever necessary.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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