Types of Credit Card Fraud You Must be Aware of

People have been talking a lot about credit card fraud lately. If you use credit cards, you need to know about the scams around you. Credit card fraud must have been in the news or happened to one of your friends or family members at some point. Banks are trying to figure out how to fix the problem, but scammers always devise new ways to take your money.

Do you want to know how to stay alert to prevent things like these from happening? In this article, we’ll talk about credit card scams you need to know about and how to avoid them.

Credit Card Fraud: Types & Avoiding Them

Fraudsters can get their hands on your personal information in several ways, such as by getting your CVV, credit card number, one-time password, and so on. This makes it easy for someone to trick you. Here are some ways to spot these scams and stay away from them.

1. Skimming

Your credit card information may be fraudulently obtained by a practice known as “skimming,” using a “skimmer.” This term refers to a tiny electronic device that is connected to point-of-sale (POS) machines. Therefore, when you swipe your credit card through a POS machine, the skimmer reads the credit card’s data and then stores them. After the skimming device has stolen all the information from the credit card, a nearby hidden camera will record the PIN you enter while completing the transaction. This makes it easier for fraudsters to get all of your credit card information and scam you of your money. This scam frequently occurs in crowded situations where you are often in a hurry, like gas stations. It can also happen when people use ATMs.

• Before you swipe your credit card, you should always check the POS to see if it has a skimming device attached
• If you think there might be some device attached to the ATM, don’t use it
• Cover the keypad with your other hand while typing the PIN so that fraudsters can’t use your credit card information without the PIN
• If someone stole your credit card information, you should immediately call the credit card company and have your card blocked. This will stop scammers from being able to make transactions

2. Phishing

Phishing is a kind of credit card fraud in which cardholders get an email from what seems to be a trustworthy financial institution. After they open the email, they are instructed to click on a link, and when they do, they are sent to a fake website. They are asked to provide their personal information on that website. The majority of individuals fall for phishing scams in this way.

• Financial institutions will never ask for your personal information in an email
• If you get such emails, call your bank or the company that gave you the card immediately
• If the email looks strange, don’t click the link
• Confirm the URL before you enter any personal information

3. Malware Attacks

Malware Attacks are a type of credit card scam in which people are tricked into downloading malicious software. When you type your credit card information into your device, hackers can see what you do with your card and steal the information. In return, these hackers use your credit card information to make purchases online.

• No matter what, you should always use licensed software
• Install antivirus software on your device to prevent this kind of credit card scam
• Do not give out private information on websites that are not encrypted. Check if the URL starts with HTTPS or HTTP to see if a site is secure. Also, if HTTP is red instead of green, it means the site is not safe
• Never click on links from sources you don’t trust

4. Card Fraud Department

In this kind of credit card fraud, a fraudster calls you and says they are from the credit card company. These scammers know some things about you, like your name, where you work, and where you live. They use these details to win your trust. Then they tell you about the unauthorized transactions made on your credit cards. They say that you will be responsible for these transactions if you don’t give them your card details. This is how many individuals end up falling for the scam.

• You can always check your online banking to see if any of these kinds of transactions have been made with your card
• Always remember that a credit card company will never call you and ask for your credit card information
• You can always call customer service or go to your bank to see if a call like this has been made by them

5. Free Wi-Fi

If you are connected to unsecured public Wi-Fi, there is a chance that a scammer is also connected to the same Wi-Fi. With some work and research, the scammer can see what you do on the internet. If you transact or log into your online banking portal while connected to the Wi-Fi, the scammer will get all of your information. This is how you may get caught up in credit card fraud.

• Always ensure that a public Wi-Fi network is safe before using it
• Never make a purchase or log into your online banking portal using public Wi-Fi

Final Thoughts

After reading this article, you should be able to better understand the different kinds of credit card fraud and how to avoid them. If you don’t understand something or have questions, visit your bank or call customer service immediately.

Piramal Finance is an outstanding financing option for people who are seeking ways to protect themselves from being scammed through credit card transactions. Visit our website for other financial services like housing or MSME loans, personal loans, etc.