Credit card common scams on rise. How to protect yourself?

With the increasing digital world, the digital payments are becoming a common place in our lives. And thats why we are opening ourselves to digital frauds. What are the credit card common scams and how we can protect ourselves from them.

What is a credit card scam?

In simple language, Credit card fraud is the unauthorized use of someone’s credit card information to make purchases or access funds. This generally happens when criminals steal credit card details through various means such as phishing, skimming, hacking, or data breaches.Once they have the information, fraud expenses can include making online purchases, withdrawing cash, or transferring funds without the your consent.

Did you know that digital frauds today is a multibillion dollar industry and almost all nations experience these frauds.

What are some common credit card scams

1. Phishing: Scammers pose as trusted companies, tricking you into giving away your card info via fake emails or websites. These happens a lot via banking websites
2. Skimming: A device secretly captures your card details when you swipe it at an ATM, petrol station or a retail outlet
3. Counterfeit Cards: Criminals clone your card info onto a fake card to make purchases as if they were you.
4. Account Takeover: Hackers take control of your credit card account to make unauthorized transactions.
5. Card Not Present Fraud: Thieves use your card info to shop online or by phone without needing your physical card.
6. Lost/Stolen Card: Someone finds or steals your card and uses it without your permission.
7. Application Fraud: Fraudsters use your stolen personal information to apply for a new credit card in your name.
8. Mail Theft: Thieves intercept your card or sensitive mail or courier before it reaches you.

Some tips to prevent credit card scams

1. Monitor your statements: Regularly review your credit card statements for unauthorized transactions.
2. Use strong passwords: Set unique and complex passwords for online banking and shopping accounts.
3. Enable alerts: Set up transaction alerts to receive instant notifications of card activity.
4. Avoid public Wi-Fi: Don’t enter card information while using unsecured public networks.
5. Shred sensitive documents: Dispose of old bills or card statements by shredding them to prevent data theft.
6. Keep your card in sight: Ensure your card stays in view during transactions, especially at restaurants or stores.
7. Report lost or stolen cards immediately: Contact your bank right away if your card goes missing.
8. Set limits: Set limits to daily, online and international usage using netbanking.

Conclusion

Its high probability that someday some scam might encounter you. They play on your fears and reactions. Do not lose composure and give any personal details. Follow your statements and keep using the common sense tips to avoid being scammed. Also its important to discuss these things with your peer group, elders and children so that they are aware of the scams going around.