A scammer phishes credit card details disguised as online shopping rewards

PaisaSimple Tips to Tackle Credit Card Fraud

Q: How does credit card forgery occur?

Through phishing, skimming, hacking, and using someone’s lost card.

Q: What are ways of detecting credit card fraud?

Monitoring credit card statements and credit ratings, reviewing credit card bills, and analysing suspicious calls, emails, or text messages.

Q: Can connecting to public Wi-Fi cause credit card fraud?

Yes, your laptop or phone could be hacked to gain access to your personal and credit card information.

Q: Is credit card fraud detection easy for a common man?

It is tricky, but not impossible. Follow our tips and you’ll be smarter in avoiding and dealing with it.

• August 24, 2024

Credit card fraud can be stressful and harrowing. But you aren’t alone and might be able to reverse the charges if you report them as soon as possible. Paying attention to your credit card statement(s) is vital for this.

A credit card fraud is the illegal act of using someone else’s card to make payments and transfer cash. This could happen either by physically stealing your card or virtually hacking your account to access your card details. A credit card fraudster will use your card to purchase products or transfer and withdraw cash.

If you’ve ever been a victim of such a scenario, it can be a serious headache in unauthorised transactions and alarmingly high credit card bills. Moreover, as these fraudulent transactions pile up, your credit utilisation increases and your credit score decreases.

There are many ways scammers can get your details. Understanding how they could scam you and how you can avoid it is how you protect your card from attacks.

The Types of Credit Card Fraud

Let’s take a look at the common ways in which you could be scammed.

Phishing

A credit card fraudster would send you an email or SMS or make phone calls posing as a government agent, bank manager, insurance agent, or marketer. They force you into giving them your details on the grounds of transactions or verifications.

Skimming

This is a very dubious way of credit card fraud. Your credit card information is stolen by swiping it through a card reader.

Credit Card Loss

If you lose your card and it ends up with a credit card fraudster, they can use it to carry out transactions till you block your card or it reaches its limit.

Hacking

If your smartphone or computer gets hacked, a fraudster can extrapolate your details through credit card forgery and use them for their gains.

Detecting Credit Card Fraud

Scammers can attack and acquire your credit card details at any time. You may be vulnerable to these attacks, but there are ways to ensure detecting credit card fraud.

Constantly monitor your credit card statements, SMS alerts, and emails.
Monitor your credit rating to see if there is a drastic decrease in it.
Review your credit card bills for discrepancies.
Do not entertain suspicious calls about rewards or offers, asking you to share your OTP.

Tips to Prevent Fraudulent Credit Card Transactions

Take your time while making online transactions; do not be in a hurry. Verify the payment gateways before adding your payment details.
Report your stolen card to the bank immediately. Block the card on the bank’s app to prevent unauthorised transactions.
Do not share your card details or bank login information with anyone. Do not write down this sensitive information; keep it away from prying eyes.
Avoid public Wi-Fi. These networks are not secure and can be intercepted by scammers to steal your personal information.
Ensure the website you’re making payments on has high-level, secure encryption.
Use the transfer limit option on your credit card app to limit the damage from unauthorised transactions.
Be aware of suspicious links. Contact your bank to confirm the authenticity of the link or information.
Report suspicious activities on your card immediately.

Credit Card Fraud Detection and Next Steps

So, what do you do after detecting credit card fraud? Here are some things you could do to protect yourself.

Contact the card-issuing bank immediately or within 2 days of the fraudulent transaction. But take care about how you contact them. Visit the bank’s branch for a personal discussion or its website to find the correct helpline number.
Change your login passwords and credit card pins and block the card.
Contact the police and file an FIR after discussing with your card issuer or bank if the amount lost is high.

Conclusion

Don’t hesitate to inform your bank immediately when you spot a fraudulent transaction. Follow the steps we mention in this blog to safeguard your account and protect yourself from credit card fraud. Detecting credit card fraud is not easy but neither is it impossible. Monitor your statements and credit score to be aware.

With each passing day, there are more tools to combat scams and get back your money in case of fraudulent transactions. Keep your personal information safe and remember not to click every link that comes your way.