In recent years, credit card fraud has been on the rise. Most people fall victim due to minor mistakes that you can easily avoid. This fraud can bring you a lot of trouble, negatively affecting your credit score and losing money attached to your credit card. Knowledge of credit card fraud is crucial to avoiding this type of fraud.
We have compiled top tips to help you not to fall victim to credit card fraud.
Credit card theft
One common way of credit card fraud is actual theft. It’s important to treat your credit card as if it were the actual cash value of the card. Typically, a credit card is worth its withdrawal limit, so if, say, its withdrawal limit is $10,000, you should treat it like it’s that amount.
Many people make one big mistake of having a new credit card or card replacement mailed to an insecure mailbox. If you must have your credit card mailed, ensure that your mailbox is lockable and check and clear it on a daily basis.
Credit card skimming
Credit card skimming is a machine-based fraud, where a small component sits under a card reader or ATM and scraps your card details. Skimming is more of a technical fraud that may not be under your control.
The good thing is, most ATMs have a mechanism for preventing this kind of fraud. Crucially, you should keep your credit on sight when withdrawing cash or making any payment.
Credit card phishing
Credit card phishing is where an unknown person contacts you and asks for your credit card details, unconventionally. While phishing is an easy credit card fraud to avoid, it’s also one of the easiest to fall victim to.
Scammers are all over, not only in the credit card scope, so you should never give your personal information to an unknown person. Please note that scammers may contact you in numerous ways (including email), so you should be extra vigilant.
Only your credit provider is mandated to ask for details about your card, and even so, you should only do it when you’re sure they are the right people. In fact, it’s advisable to sort out all your credit card issues with your credit card provider physically.
Using credit card online
There are many online stores as most businesses have shifted online. Online shopping offers a lot of benefits, making it more preferred than physical shopping. Online shopping saves you time and money. Everything is delivered by just adding items to the cart and completing the payment.
However, this comes with many limitations, such as credit card fraud, and you need to be extra cautious to avoid falling in this online trap. The first thing is to ensure you’re making purchases from secure websites. If you’re unsure of the legitimacy of a website, use third-party payment processors.
Criminals can access all your credit card information from an unsecured website and steal from you or wrongly use the information.
The second option is to use security features such as facial recognition before carrying out any payment. If you’re uncomfortable with third-party, ensure you’re very cautious not to shop from unsecured websites.
Immediately Reporting of Lost or Stolen Card
It’s recommended to report lost or stolen credit cards immediately to your financial institution. The sooner you give the notice of lost card enables quick credit card fraud prevention. With prompt reporting, you’ll be able to avoid cases related to credit card fraud. Keeping the credit card company’s customer service number in your phonebook can help you avoid delays in informing your service provider in the event your credit card gets lost.
Monitor your credit accounts
It’s advisable to regularly check all transactions listed on your credit card statement and online accounts to ensure no unauthorized users make them. You should contact your card issuer immediately if you notice anything suspicious. You can also sign up for a credit card monitoring service as they help provide early notice of potential fraud.
Credit card fraud prevention is a skill we all need to learn now. But it doesn’t have to be complicated. If you come across something that feels in any way suspicious or not secure, don’t follow through. No one can force you to make a purchase that doesn’t feel safe. Just keep an eye out for fraud and take every precaution you can.
The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice.