5 Credit Card Scams and How To Stay Safe
Using antivirus softwares and password managers on your devices can help add an additional layer of security
An Indore based real estate broker was recently defrauded of Rs 2.96 lakh by cyber conmen posing to be from ICICI Bank, promising a credit card with a Rs one lakh limit, free of charge. The caller convinced him to download an app, which ultimately led to the fraud. The Indian Cyber Crime Coordination Centre (I4C) reported that over the last three years, digital financial frauds have led to staggering losses worth Rs 1.25 lakh crore.
Says Shikhar Aggarwal, BLS E-Services - a financial services platform, “Most become victims of these scams simply because they do not pay much heed to minute and crucial details, like spelling mistakes in emails, unsolicited calls, or unexplained charges in statements.”
How To Prevent Falling For Credit Card Scams?
Says Adhil Shetty, CEO, BankBazaar.com - a credit card fintech, “In suspicious situations use the CHECK list - Credibility, Haste, Excess Information,Control, Known platform.” In this method you check for the reliability and reputation of the site, whether you initiated the request, if it comes with an unusual sense of urgency or is requesting too much information.
Avoid using public Wi-Fi and unsecured networks while entering sensitive banking information. Don’t share credit card PINs, logins and similar information with anyone. Most banks these days come with a two-factor authentication (2FA) option for your accounts for added security. Enabling this option acts as an additional line of defence against credit card frauds. While shopping online, going through websites that use secure payment gateways ensures your data remains confidential. Setting limits on where and how your card can be used can help keep a check on card usage and instantly be alerted of card misuse.
Here are five of the most common virtual credit card scams and how you can avoid them.
Credit Card Skimming
Scammers often fit skimming devices onto card readers. The device collects all your card data and PIN when you insert your card into a machine or withdraw money, and transfers it to the scammer. Machines that appear to be coming apart can be indications that they have been tampered with. Wiggling the machine before use can help you detect a skimming device as well.
SIM Swapping
Once they have your basic details, hackers can sometimes impersonate you and request your phone operator for a duplicate SIM. This allows them room to access your current IDs, create new ones, receive OTPs, access 2FA codes and execute online transactions. If you receive a duplicate SIM access or your number has been blocked without cause, immediately notify your operator to limit the damages and cut off the hacker’s access.
Fake Customer Service
In these cases scammers call posing to be customer service and trick you into sharing sensitive personal or banking information. They may also pose as tech support requesting remote access to your device. They use this to gain access to sensitive data. Exercise caution when you receive calls from customer service or tech support especially when requests have not been initiated by you. Verify their credibility before disclosure of any information.
Phishing
Scammers try to con you into revealing personal information and card details using fake emails, messages, or websites links that imitate authentic bank or credit card services. Some telling signs are misspellings, emails not sent from official ids and messages with a tone of urgency.
Keylogging
Hackers sometimes make use of malicious software which you unknowingly download when you click on malicious links or download unsecured apps. This malware records keystrokes, capturing IDs, passwords and bank information leading to identity theft and financial crimes. Using antivirus softwares and password managers on your devices can help add an additional layer of security.
What To Do If Your Card Has Been Exposed?
Says Aggarwal, “If your credit card has been compromised, report it to your card issuer at once, block your card and freeze your account if needed. Notify them of any unusual activity and set fraud alerts.” Says Shetty, “The earlier you report, the higher will be your chances of being eligible for zero eligibility protection, subject to conditions.” Ensure that you regularly follow up on the report and provide requested documents timely until the dispute is resolved. Notifying the credit bureau will ensure the fraudulent activities don't impact your credit score.
