As our dependency on credit cards has increased, so have the frauds. If you go by the newspapers, in Hyderabad alone, over 200 people have first-hand experienced credit card fraud in the first four months of 2015. And, Hyderabad is just one example. Such frauds are not restricted to one city alone but are fast emerging as a global phenomenon. A study conducted by ASSOCHAM has indicated a six-fold increase in credit card theft over the past three years, with the latest figures for 2015 year to date standing at a staggering 3000+.
In the wake of such frauds, the question that lies before us is how we can protect ourselves against such incidents. The first step to protecting ourselves against anything is to actually know what we are placed against. So let us first know the types of credit card frauds and then see what we can do to protect ourselves from being duped!
How is it done?
Identity theft
Identity theft is a form of stealing wherein the thief assumes the identity of another person with the intention of using your card details for unauthorized transactions without your knowledge.
Identity theft ranks among the easiest and most popular ways to commit a credit card fraud. All a thief has to do is have access to some of your personal information and they can very easily assume your identity. Such information about you is not difficult to come by because in the online era, we all are using our phone or computers to store vital information about us, which increases our exposure.
Phishing scams
Fraudsters resort to emails and SMSes to dupe you into sharing confidential information. The tone and design of such emails will give you an impression that they are from a trustworthy source but in reality they are not. A popular way adopted is to come up with schemes that offer financial incentives. Links contained in the email may direct you to a fake website that actually routes the data to identity thieves. If you are unsure about the authenticity or if the offer is too good to be true, then you must contact the source directly. To tackle this menace, companies are now stepping up to protect their customers by raising awareness.
Card duplication
Another commonly used technique to commit a credit card fraud is card duplication. In this case, fraudsters use a counterfeit card that contains information of an authentic credit card. To deal with this problem, credit card issuers have inserted security features, such as holograms and colors, which are hard to replicate. Another way to mitigate this issue is to train sales representatives at malls and eateries on how to recognize a duplicate credit card.
How to avoid credit card fraud
Some simple Dos and Don’ts will help you protect yourself from falling prey to such frauds.