Credit Card fraud: What you need to know about – Millions of people around the world are always vulnerable to credit card fraud. If you own a credit card, or even a debit card, then chances are you can be the next victim of this fraud.
Since 1980, we have witnessed an impressive increase in the number of users of debit, credit and pre-paid cards all over the globe. A report shows that more than US$31 trillion were generated by these payment methods in the year 2015, which was an upgrade of 7.3% from 2014. 87.5% of the transactions are made electronically.
We owe the cause of this trend to convenient online money transfer tools such as Paypal and the wide spread approach of e-commerce around the world. The growth is visible in developing parts of the world but at a slower rate but these trends will continue.
All this is because of leading companies such as Flipkart, Snapdeal, and Amazon India (together they own 80% of the Indian e-commerce market in 2015) as well as Alibaba and JingDong (it has 70% of the Chinese market in 2016), electronic payments are now accessible to more and more people now.
But it comes with its own problems;this web of electronic payments is a goldmine for cyber criminals. Reports show that US$21 billion worth of card fraud took place in 2015 worldwide. In 2010, the number was US$8 billion. Looking at the trend, the projected fraud is of US$31 billion by 2020.
There are two main categories of fraud
- Card-not-present (CNP) frauds. This is the most common kind of fraud that takes place. In this, the information of the card holder is stolen mostly via Phishing- emails sent by fraudsters claiming to be credible institutions.
- Card-present frauds: This kind of fraud is very rare nowadays. It’s done via skimming in which your information is stored in the card swiping machine by the fraudster when you purchase something from the store.
How to be safe from fraud?
Right now, there is none 100 percent safe way to keep fraudsters at bay. But, for now you can use these measures to reduce the risk significantly.
- Never click on the links in the email that ask you to furnish your personal information, even if the sender says it is your bank. Your bank will never ask for your information like that.
- Whenever you are buying something online from a new seller make sure it has good positive ratings from its previous users. You can Google the name of the vendor.
- Final one but the most important one, always make sure that there is a green padlock besides the address bar of your browser. The URL should start with https://, which is secured and encrypted protocol to access webpages. Note that fake pages will likely to have grammatical errors or strange words; it is an indicator that the website is solely designed to steal your financial data.
This age of internet offers no guarantee of safety but these steps will decrease your chances of being a victim of fraud.