Credit Card Lost, Misused? Here's How to Claim Compensation

Credit card frauds are becoming a major issue in the world of ecommerce. A credit card fraud is a theft or fraud which involves your credit card. The very aim of a credit card fraud is that theft can buy goods without having to pay, or even steal money from your credit account.

What Are the Different Types of Credit Card Frauds

There are 4 main types of credit card frauds:

• Credit card skimming: This is when your credit card is copied using a swipe device machine known as a skimmer. This is used to make a duplicate version of your credit card.

• Lost/stolen credit cards: If your credit card has been misplaced or stolen, the thief can use the card without your permission.

• Making fraudulent applications in your name for a new credit card.

• Credit card details: Information like your credit card number, date of birth, card holder name, and address can be stolen from online databases and even via email scams. This information is then sold on the internet.

Claiming Compensation

• Compensation is offered to every cardholder in case of a loss and misuse of your credit card by the bank that has issued your card. They will also set up your insurance arrangement.
• To claim the loss and for it to be valid for the credit card issuing bank, you have to ensure that every procedure to establish this as a genuine loss is in place.
• You should notify the bank regarding the loss of your credit card and also block the card to ensure that it cannot be misused.
• The loss of your credit card needs to reported to a police station and you can file an FIR as this will ensure that the recovery from the miscreant is now possible for the bank.
• Compensation to every cardholder is given independent of your recovery of money from the miscreant due to the insurance cover.

How to Prevent and Avoid Credit Card Fraud

• Do not let your card get out of your sight when you are paying at any outlet as the merchant can use credit card skimmers and misuse your card.
• Do not give out personal information or any login details (PIN or passwords) to anyone.
• Be extremely careful if someone contacts you and asks for credit card details.
• Keep your computer and mobile phone softwares up-to-date.
• Cut old credit cards through the chip and magnetic strip and throw them.
• Always double check that the companies you are dealing with are legitimate before you make any payments.
• Always use a strong password and do not use the same password for many accounts.
• Do not use public Wi-Fi for any kind of transactions.
• Make sure to log out of your bank account and website accounts.
• Always use secure websites as you can spot the more secure sites by looking at the web address.
• Make sure you redirect your post when you move, else, the letters will not reach you.