Credit cards have become rampant and millions of people rely on them for making major purchases. It’s hard to make large payments up front at once, so we consider taking some credit to manage our money. Most of the transactions go smooth without any problems.
But prevention is always better than cure. Fraudsters and hackers are always in the vigil of possible ways to take control of your money. That’s why you should know the different scams these frauds use to fool people.
Understanding credit card scams
Stolen/ lost card
It’s not uncommon to lose your credit card or your card getting stolen, you should be prepared in such cases. Keep your bank’s helpline handy and whenever it gets stolen or lost then call the helpline to block your card. Blocking the card prevents fraudulent transactions and misuse.
More of social engineering, someone may sometimes call you or email you, pretending to be a personnel from the bank. He or she may ask you to reveal sensitive information, your PIN or OTP. These scams are called Phishing.
Your bank is never going to ask you for your PIN and nobody else not even the police. Thus, never give your PIN to anyone whom you don’t trust.
Never use birth dates or mobile number digits as PIN. Fraudster can have access to all this information easily.
The advent of technology has not only empowered the good but also given tools to the fraudsters. Scammers may use new ways to clone or copy your credit card to use it later on. These electronic devices can skim card details often when you use it in shops, restaurants, or bars.
Don’t worry much! Your bank will call you as soon as it observes any unusual, potentially fraudulent transactions and if you verify that transaction not to be made by you then they will cancel your card right away.
Another act of social engineering in which the criminal may clone one of your ID and collect your PIN to pose as you and set up new credit card account to take loans is ID theft. The lenders will try to extort money from you.
You should be very cautious about your personal information and never leave it just anywhere. If possible, always shred the documents that you don’t need and then decompose it.
How can you stay safe?
- Don’t write down your PIN. Are you one of those persons who write down their PIN because you can’t retain it? If yes, you can face lot of trouble if you ever get caught up in a fraud. Your bank may accuse of negligence and won’t give your money back.
- Never ever share the PIN. If someone calls you and asks for your personal information such as PIN over the phone or email, impersonating as bank official, never give the information. No legit company asks you for such information.
- Watch out for fishy emails. Once in a while, you may get an email from someone pretending to be your bank to verify your details. Delete such emails and delete it right away. Don’t even click on any link in such emails as you may get trapped.
- Sensible use of Public Wi-Fi. All the information shared over public Wi-Fi is vulnerable and can be accessed easily by anyone on the same network. Never make transactions or use banking app over the public Wi-Fi. Criminals my intercept the network.
- Shred documents with personal information. Personal documents left in haste can leave personal information to be prone to criminals. Don’t leave them in open.
- Try harder PINs. Try the most random password that you can think of. If possible, change your PIN every month. Fraudsters can easily access your date of birth or your family’s.
These steps will keep you safe on the internet. You should report immediately to police and bank if you ever get into a scam.