Credit Card frauds and how to prevent them

Credit card frauds can be avoided if you know the different ways scammers try to access your data

Everything happens in a second in the fast-paced financial world we live in today. From withdrawals and deposits to purchases of products and services, everything takes place instantaneously.  Credit & debit cards have undoubtedly revolutionised the financial world. Moreover, they come with a long list of benefits.

However, there have been several incidents where  credit cards have taken place. Read on to know what credit card frauds may include and how you can prevent getting caught in a credit card fraud.

Types of credit card frauds

Unfortunately, there are many ways in which one may fall victim to a credit card scam. Few of them have been explained below in the hope that they will help you keep an eye out to avoid these frauds.

Skimming

Credit card skimming is a type of credit card fraud in which credit card information is stolen using a small electronic device known as a 'skimmer.' A card is swiped through the ‘skimmer,' which captures and stores data from the magnetic strip on the credit card. This information can then be duplicated onto a blank credit card magnetic strip.

The information is utilised to make withdrawals from the bank account or to make purchases with the credit card details. Individuals should ensure they are careful when using their credit cards. They should also avoid putting their credit card in a slot that appears strange or unusual. Chip-based cards are far more secure than their magnetic stripe counterparts.

Phishing

Phishing is a credit card fraud in which the cardholder receives an email from a supposedly reputable financial organisation or bank familiar to them. On clicking a link in the email, the cardholder will be taken to a bogus website, where they will be asked for personal information. Most people fall for this scam because the URL they receive in the mail appears legitimate. Banks do not send emails requesting private information online.

Anyone who receives such an email or SMS should notify their bank or card issuer as soon as possible. Doing this will ensure you are not caught in a trap. Also, stay vigilant about the messages and emails you receive and observe caution before responding to them. Do not click on links if the emails look suspicious. 

Keystroke capturing

Keystroke capturing is a credit card fraud in which people are tricked into downloading malicious software. Identity thieves or hackers can record the cardholder's keystrokes as they type in their credit card information. They use these details to make online purchases with the stolen credit card information.

Cardholders must have an antivirus application on their laptops and devices to prevent this type of credit card fraud. It aids in the prevention of malware and spyware. Additionally, one must always remember that secure websites begin with HTTPS and HTTP. Only these websites should be used to make online credit card transactions. Also, if the HTTP is red rather than green, the site should be considered unsafe.

Sim swap

In the event of a sim swap fraud, the cybercriminal would call a mobile operator pretending to be a cardholder. The scammer will then request a duplicate SIM card, with the cell operator deactivating the original cardholders' genuine number. The scammer would use the SIM to create an OTP and execute transactions online.

If you feel you have fallen victim to this fraud, notify the mobile operator right away. If your phone suddenly stops working or you receive a warning about a duplicate SIM request, inform the appropriate authorities immediately.

Credit card providers are always looking for ways to better protect your card. Every successful transaction is dependent on the OTP, which is sent on your registered email address. This ensures no one can access your card without your approval.

You can, meanwhile, also take efforts to prevent fraudulent activity on your credit card. Never share your CVV (Card Verification Value) with anyone. It is a unique number that protects your card from malpractices on the Internet. If you have lost your credit card, immediately block it by calling the customer support team.

While you can get a credit card from any institution, you get more security with a credit card from a reputed institution, such as Metra Trust. Such banks do everything in their power to help you if you are involved in credit card fraud. Furthermore, Metra Trust offers credit card interest rates that will ensure repaying your dues will not be a burden. Apply for your credit card online today on Metra Trust’s banking app and stay protected with the tips suggested above.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.