IndiaLends Advisory

By IndiaLends Advisory

Feb 02, 2019

Protect Yourself from Credit Card Fraud


Did you know that almost 110 crores were lost in the financial year of 2018 through credit card fraud?  Over 35,000 cases of credit card frauds in India were reported over the last 2 years. All this drills down to the fact that any of us can become a victim of a credit card hack.  While looking for solutions to counter this menace,  it is clear that many of these cases could have been avoided if the sufferers had used simple known methods to safeguard themselves.

Credit card fraud is not only the illegal and unauthorized use of your credit card to steal goods without paying for them or to withdraw cash from your account, but it is also theft of your identity and personal information. To avoid being a victim of credit card hacks, it is good to know what to beware of.

→ Do Not Reveal Credit Card Information

Never reveal your credit card details to anyone who calls requesting for your credit card information. Scammers are known to pose as banks and credit card issuers to make you reveal sensitive information. Authorized entities will never ask for your card details and therefore it is best to report this to your credit card customer care number.  Do not reply to text messages or emails asking for credit card information because it is difficult to tell whether or not that email or text is from a scammer giving you a fake number to get you to reveal information. 

Related Article: Stolen Credit Card: What to Do if You’re a Victim?

→ Beware of Phishing Mails

Using your credit card online requires caution. Whenever you use your card for an online transaction make sure the website you have visited is secure by looking for the ‘s’ in the https:// in the address bar and a lock in the right corner of your browser. This way you can be sure you are on a safe website.

Scammers use fake websites that look like the website of your credit card issuer or other businesses. You can reveal your  account details when you login to such fake websites thinking it is the real thing. Avoid clicking on email links that you receive,  instead go directly to the business’s website and then log in to your account.

→ Keep a Watchful Eye

It is good to add your mobile number to receive instant alerts on your credit card transaction activity. This way you instantly get to know of any fraudulent activity and can report it to customer service so that you are not held liable for the the amount. New RBI guidelines protect the customers if the loss is due to poor security by the bank. However, if negligence is on our part, we bear the loss.

→ Do Not Lose your Credit Card

The easiest way to avoid a credit card fraud is to not lose your credit card – not that we do it deliberately.  Do not carry all your credit cards at any one time but only the one you are most likely to use. Stolen credit cards put you at risk in case you are ever pick pocketed or lose your wallet. Do not expose your credit card for longer than necessary because scammers can take pictures of your card. Before you leave a store or a restaurant make sure you have your card with you.

Related Article: Handling Identity Theft: What Is Fraud Alert And How To Use It

→ Beware of Credit Card Skimmers

A credit card skimmer is a card device that is placed on the card reader. These devices capture and store your information and scammers can use this to access your data.  Card skimming devices are of different types so to avoid this type of fraud look for: a card reader that sticks out past the panel, a security pin overlay, or parts of a card reader that is loose. If you find any of these at an ATM or card machine, do not use the system.  

→ Dispose of Material with Credit Card Information

Credit card billing statements normally have your full credit card number written on it so shred it before you trash it. You also need to cut your old card when it expires so that it does not fall into wrong hands.  Check your billing statements every month and if you find any suspicious activity make sure to report the same to the credit card issuer immediately.

Related Article: Identity Theft and Fraud Protection of Credit Cards

→ Don’t Conduct Credit Card Transactions on a Public WiFi

Never conduct credit card transactions in public places using public WiFi as hackers can easily get your information on a public internet connection. Also, ensure that you have  an antivirus software on your laptop and it should be regularly updated. This will protect it from downloading malicious content through which hackers could steal your information.   

Preventing credit card fraud requires you to be alert. Scammers are always looking for new ways to trick you. The golden rule to follow is to never divulge your information. Today with chip-embedded credit cards, it has become difficult but not impossible to be a victim of credit card scams.

Previous Article: How Do Credit Cards Work? All You Need To Know