In a fast paced world such as ours, everything takes place in an instant. Transactions such as withdrawal, deposits, purchasing goods and services, etc., everything happens within a short span of time. Thanks to their credit cards or debit cards, customers can also procure cash instantly by visiting any of the ATMs. it is safe to say that credit cards and debit cards have revolutionised the world of finances. These plastic cards come with an enormous number of advantages. However, there are also a number of instances wherein fraudulent occurrences have been linked to these cards as they are quite vulnerable. However, with proper care and precautions, credit card fraud can be avoided.
Given below are some of the most common credit card related fraudulent instances that can occur.
This is a type of fraud wherein a small electronic device known as a ‘skimmer’ is used to steal credit card information. This usually occurs when the credit card is inserted into electronic devices such as Point of Sale or PoS. This card gets run through the ‘skimmer’ and information from the magnetic strip of the credit card or debit card gets captured and stored.
This data can then be copied onto the magnetic strip of a blank credit card or debit card. This information is then used to withdraw money from the bank account or making purchases using the credit card details. This process is known as card skimming.
In order to prevent the above from occurring, it is important for individuals to ensure that their credit card is always swiped in their presence. They should also not insert their credit card in any slot in case it looks suspicious or odd. Chip based cards are also a lot more secure in comparison and should be preferred.
This is a type of fraud wherein email are sent to the cardholder from a supposedly reputed financial institution or bank that is known to the individual. This link, when clicked on leads to fake websites which ask for confidential information. Most cardholders fall for this fraud as the link that they would have received the mail from would seem genuine. However, most banks do not send any emails asking the individual to provide confidential information online.
Hence, if anyone receives such as email or SMS, they must contact their bank or card issuer at the earliest.
Keystroke Capturing is a technique wherein individuals are conned into downloading a malicious software which is used by identity thieves or hackers to record all keystrokes used by the cardholder when they type in their credit card details. These details are then utilised by them to make online transactions using their credit card.
In order to prevent this fraud from occurring, cardholders must always have an antivirus application on their computers and smartphones. This helps to keep out malware and spyware. Also, secure websites start with ‘https’ and ‘http’. Online transactions must only be conducted in such websites. Also if the ‘http’ is in red and not green, such sites are most likely not secure.
In case of a Swap Fraud, the identity thief would contact the mobile operator by showing the identity proof of the cardholder, which would be a fake. This fraudster will then apply for a duplicate SIM card and the mobile operator in doing so, would also deactivate the actual number of the cardholder. This fraudster would generate an OTP on the phone using the SIM and conducts transactions online.
In case an individual suspects this of occurring, he/she must immediately contact their mobile operator. In case their phone goes out of service suddenly or if they receive a message regarding a duplicate SIM request, the individual must immediately contact the relevant authorities.
It is always better to be safe rather than sorry. By keeping the above points in mind, individuals can prevent their credit card from being misused by fraudsters.
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