Tips to avoid credit card frauds

We are breathing in an environment where fraudulent can attack any time whether it is the virtual or the physical world. People must be aware of these frauds and take precautions specially when making financial transactions through credit card. It will secure their funds. In simple term, Credit card fraud occurs when consumers give their credit card number to unfamiliar individuals, when a credit card is lost or embezzled, it may be used for illegal purchases until the holder notifies the issuing bank and the bank puts a block on the account.

Most banks have free 24-hour telephone numbers to encourage quick reporting. Still, it is possible for a robber to make unauthorized purchases on a card before the card is cancelled. Without other security measures, a thief could potentially purchase for thousands of INR in merchandise or services before the cardholder or the card issuer realizes that the card has been compromised.

Credit card holders must know the types of credit card fraud to generate awareness and evade from it. Most common type of online credit card fraud is the phishing e-mail scam, which is designed by thieves to look like an e-mail from banks, financial institutions, social networking sites, and even friends or co-workers. By using official-looking logos or information about friends, these e-mails often appear to be genuine. They prompt the reader to enter log-in information or passwords to verify accounts, with links to illegitimate websites. Once sensitive information is found, scammers can use the data for fraudulent activity. Banks, financial institutions and other companies normally do not ask for account information online, so customers who receive this type of e-mail should confirm with the company by phone before responding.

Another category of credit card fraud is Counterfeit Credit Cards. The ability to recognize counterfeit credit cards is crucial to prevent credit card fraud during face-to-face transactions. Counterfeiting involves taking a real credit card and using the information from the magnetic strip to create a fake card. This fraud often involves Canadian credit cards, as people are less familiar with them. Dealers are held accountable for accepting counterfeit credit cards, resulting in heavy fines that can be devastating for business.

Identifying counterfeit card simply requires knowing what to look for. Real credit cards have special features that make them hard to duplicate, such as standard specifications regarding colour, tint, style, holograms and other details. Credit card fraud can take many different forms, and in order to protect your business and your customers, you should be able to recognize the types of fraud. Sensitive credit card information can be compromised even if your credit card is not physically stolen from your wallet.

Phishing Scams:

A common type of online credit card fraud is the phishing e-mail scam, which is designed by thieves to look like an e-mail from banks, financial institutions, social networking sites, and even friends or co-workers. By using official-looking logos or information about friends, these e-mails often appear to be legitimate. They prompt the reader to enter log-in information or passwords to verify accounts, with links to illegitimate websites. Once sensitive information is obtained, thieves can use the data for fraudulent activity. Banks, financial institutions and other companies normally do not ask for account information online, so customers who receive this type of e-mail should confirm with the company by phone before responding.

Counterfeit Credit Cards:

The ability to recognize counterfeit credit cards is crucial to prevent credit card fraud during face-to-face transactions. Counterfeiting involves taking a real credit card and using the information from the magnetic strip to create a fake card. This fraud often involves Canadian credit cards, as people are less familiar with them in the United States. Merchants are held liable for accepting counterfeit credit cards, resulting in hefty fines that can be devastating for business. Identifying counterfeit card simply requires knowing what to look for. Real credit cards have special features that make them hard to replicate, such as standard specifications regarding colour, tint, style, holograms and other details.

Identity Theft is also a type of credit card fraud. When thieves gain access to certain personal documents, such as driverís license, they can use the sensitive information to perform deceitful activity. They can open bank accounts, set up bill payments and even apply for a job under the stolen identity. Identity thieves gain this information by going through trash and accessing non-shredded documents, or performing a phishing scam to obtain passwords. To prevent identity theft, consumers must always keep important documents locked up and be sure to shred before throwing them away.

Credit card holders must take following precautions to evade from credit card fraud:

1. Experts advise that when people are using credit card online, they must be cautious. Due to advancement of internet technology, it is easier for people to make online shopping but when they use their credit card online, they are prone topotential frauds. While choosing a card, it is important that they focus not only on the fees, credit limit, and reward structure but also on the security aspects of the card.

It is observed that sometimes hackers hack into a bank's website and steal customer's card information which are then used to make fraudulent transactions. If the card company does not have proper security systems in place it makes card holderssusceptible to deceptions. Therefore it is very important that people must be careful while using their credit card for online shopping.


2. To prevent from credit card fraud, it is recommended that people must not store their credit card number on a website. Because if people store the card number on a website, it exposes to potential threats. The information is available to the website, hackers trying to commit fraud and to anybody else who may use the laptop/computer/mobile.

3. Always use secure websites. There are numerous websites available for shopping. They attract users through special discounts, fashionable designs and fast delivery. It is necessary to check for the security features of the website especially when making a transaction on a new website.Check the website URL, it should begin with "https" and there should be some indication on the website to ensure that it a secure one.

Generally all websites have set of security guidelines, mode of payment to be used for the safety of the users. Users must read these carefully before using.


4. Credit card holders while using financial website must be careful with the names. It is not recommended to follow a link that is sent in a promotional email to transact. People who are looking to commit frauds may create websites that have similar names with similar web design and lay out to trick buyers.

5. People must avoid public terminals to protect from credit card fraud. Using public terminals or transacting over a Wi-Fi network makes the user more susceptible to credit card misuse. People can never be sure about the safety of a public terminal, if they have required safety features (spyware or malware) and who will use it after them. The information people enter can be hacked into and may also be available to other people using the terminal.

Some more tips that can help people from credit card fraud

  • People must have the requisite safety guards on their computer/phone to prevent hacking.
  • People who are using mobile phones for online shopping must take extra care.
  • Never enter PIN for online shopping. Online shopping requires CVV number and the transaction password that is sent to phone.
  • People must set for alerts so that they get a message immediately after usage and can take necessary action in case of misapplication.

As a preventive measure, it is recommended that card holders:

  • They should not give their account number to anyone on the phone unless they have made the call to a company that is reputable. If people never done business with them before, do an online search first for reviews or complaints.
  • They must carry cards separately from wallet. It can minimize losses if someone steals wallet. They must carry credit card whenever necessary.
  • During a transaction, it is important to carefully observe card. Make sure they get it back before walk away.
  • Never sign a blank receipt. Draw a line through any blank spaces above the total.
  • Save receipts to compare with financial bank statement.
  • It is advised to check them online record of transaction very often and reconcile them with the purchases they have made.
  • Report any questionable charges to the card issuer.
  • Notify card issuer if address changes or if people will be traveling.
  • It is not a good practice to write account number on the outside of an envelope.
  • It is being made cautious to everyone who have credit card that credit card information is always at risk for stealing. Therefore it is essential to take preventive measures to escape from scammers who play trick to fool people.