India is witnessing a growing incidence of credit card scams in online transactions. According to the 2015 ASSOCHAM-Mahindra SSG Report,about 13,300cyber crimes were reported in 2011, and this number shot up to 3,00,000by 2015. Of these reported cyber crimes, debit and credit card frauds topped the list, seeing a six-fold increase between 2011 and 2015.
These statistics could make you wary of shopping online with your credit card. However, there is no reason to be worried. A few safety tips couldsafeguard you from being a victim of scams that shopping online with credit cardsentail.
- Refrain from storing credit card details on any website
Storing credit card details on websitesis the number one mistake most credit card fraud victims make. Refrain from doing this as it pavesthe way for potential threats and gives easy access to hackers and miscreants. Though it may seem like a task to repeatedly enter your credit card information while shopping online, the effort is totally worth it.
- Shop on known and trusted websites only
Shopcarefullyonly on known and trusted websites rather than those you chance upon viarandom online searches. It is likely that fraudulent online stores use Black Hat SEO tactics to rig search engine results, thereby pulling in gullible customers to their websites.Some phoney sitescould also use misleading names (for instance, amazon.biz versus amazon.in), so it is important to check the shopping site’s URL to ascertain the genuineness of the web address.
- Install anti-malware software
It is crucialto install firewalls and anti-malware softwareon your laptop, desktop and all other browsing devices. This keeps your devices protected from viruses and other attacks, and ensuresyour credit card information is safe while you shop online.It is also imperative to enable automatic updatesfor the installedanti-malware softwareto let the programme detect all new viruses/threats.
- Exercise caution with public Wi-Fi networks
As far as possible, avoid transacting through your credit card over public Wi-Fi terminals as it increases the likelihood of credit card misuse. Public Wi-Fi systems arerelatively non-secure – the networks are open to all and safety features like malware and spyware are unavailable. This makes important information accessible to hackers.
- Optimise security settings
Always check if your computer’s security settings are optimised. Some malware programs are particularly designed to take advantage of the security vulnerabilities of your operating system (OS) and browser. You can prevent this by regularly installing all the necessary updates and security patches on your OS and browser. Also runyour system mechanic’s security optimiser – it automatically pulls out and repairs any loopholes that may be polluting your OS and web browser.
- Check for SSL encryption
Before using your credit card to shop online, verify if the vendorhas aSecure Sockets Layer (SSL) encryption, i.e. has the vendor encrypted its payment page. Secure and genuine websites use the SSLtechnology, which is a technology used to encrypt information flow between the retailer’s server and the shopper’s device – a closed padlock icon on the page top and a URL starting with “https:” indicate this (s indicates the site is secure).SSL technology scrambles the information you enter to prevent hackers from accessing your personal and financial information. Sites with SSL encryption are usually trustworthy and safe.
- Check your credit card statements regularly
Although tedious, it is a good practice to check your credit card statement after each purchase. This will help you instantly spot any fraudulent purchases and report it to the credit card company immediately. In case of misuse, a 30-day period is offered to notify the credit card company. In case of further delay, the credit card holder becomes liable for the charges, albeit fraudulent.
- Create a strong password
A strong password is your best security defense when shopping online with your credit card. For each separate banking, credit card, and online shopping account, create strong, hard-to-decipher and different passwords. This will ensure maximum safety because in the event that one of your accounts is hacked, at least the others remain safe. A strong password should ideally be alphanumeric with a combination of special characters,upper and lower case letters. For maximum security, change all your passwords every three-four months.
Additional tips:
- Beware of sites asking for your PIN – genuine online shopping websites only ask for the CVV number and a transaction password that is sent to your cell phone
- Install requisite safety guards on your laptop, desktop, and cell phone
- Exercise extra caution when you shop online through your cell phone
- Set up alerts so you get an instant message and/or email as soon as your credit card is used –you can take immediate action in case of misuse
Regardless of whether it is the virtual or physical world, being cautious and using your credit card with utmostprecaution will ensure you do not become another statistic in the growing credit card scams.