Credit Card Fraud

Imagine waking up to find your bank account empty and your financial future in trouble. This situation is a reality for countless victims of credit card fraud. 

 

Fraudsters use deceptive tactics to exploit your credit card information, including the CVV. They make unauthorised purchases or steal your identity. These scammers operate silently, potentially draining your funds without your knowledge.

 

The best defence is vigilance and preventive measures. Educate yourself on detection and prevention strategies. This way, you can use your credit cards confidently without constant fear of fraud.

Credit card fraud can take many forms. Each type poses a distinct threat to cardholders and financial institutions.

• Counterfeit Card Fraud

Fake credit cards are created by copying information from a stolen or compromised ATM card. This often involves skimming devices or compromised point-of-sale terminals.

• Skimming

Skimming devices are used on card readers. They capture magnetic stripe data from credit cards. This data is then used to create counterfeit cards.

• Lost or Stolen Card Fraud

When a credit card is lost or stolen, unauthorised individuals may use it. This can lead to fraudulent transactions. This continues until the cardholder reports the loss and the card is deactivated.

• Card Not Present (CNP) Fraud

Unauthorised online or phone transactions are made without the physical card. In this case, the information may have been obtained through illegal means.  

• Phishing and Social Engineering

Deceptive emails, messages, or phone calls aim to trick individuals. They try to get credit card information or other sensitive details.

• Identity Theft

Personal information is stolen to impersonate the cardholder. Impersonators then apply for a credit card or make transactions in their name.

• Mail Theft and Fraud

Criminals get access to credit card statements or new cards sent by mail. This enables them to make unauthorised transactions.

 

If your credit card is lost, you risk becoming a victim of fraud if it falls into the wrong hands. To prevent this, inform the authorities immediately.

Here are a few ways through which you can identify if you have been a victim of credit card fraud. 

• Monitor Your Statements Regularly 

Review your credit card statements regularly for any unauthorised or suspicious transactions. Ensure that all charges are familiar and legitimate.

• Set-up Account Alerts

Most credit card issuers offer account alert services. Set-up alerts for large transactions, online purchases, or any unusual activity. This allows you to be notified promptly of potential fraud.

• Check Your Credit Report

Regularly obtain your credit report. Review it to identify any unauthorised accounts or inquiries. You can get a free annual credit report from major credit bureaus.

• Verify Unknown Charges

Keep an eye out for small, unfamiliar charges. Fraudsters often test stolen cards with small transactions before attempting larger ones.

• Use Two-factor Authentication

Enable two-factor authentication, especially for online transactions. This adds an extra layer of security by requiring additional verification.

• Protect Personal Information

Avoid sharing sensitive details over the phone or online. Only do so if you are certain of the recipient's legitimacy.

• Check for Skimming Devices

Before using ATMs or card readers, inspect for unusual attachments. Look for any signs of tampering. Skimming devices may be used to capture card information.

• Use Secure Websites

Only make online transactions on secure and reputable websites. Look for ‘https://’ in the website address and use secure Wi-Fi connections.