How to Avoid Credit Card Fraud

Posted on Thursday, September 14th, 2023 | By IndusInd Bank

Credit Cards provide you access to money on credit and the option to pay it back at a later date. This allows you to make purchases even when you might be running low on funds. However, along with the power of convenience, they are accompanied by the risk of fraud too.

The threat of fraudsters accessing your identity and personal details and making unauthorised transactions in your name is on the rise. Though banks are beefing up their security measures, fraudsters keep finding new ways to commit these crimes.

Thus, it is crucial to educate yourself on the different types of credit card fraud taking place and ways in which you can avoid becoming a victim of these crimes.

What is credit card fraud?

Credit card fraud takes place when your credit card or credit card information is used without your permission for fraudulent transactions or purchases. 

Let us understand the different types of credit card frauds that are taking place these days.

Different types of credit card frauds

Having a credit card is a blessing in a time of crisis, but if it falls into the wrong hands, it can become a crisis in itself. It is important to be aware of the different forms of credit card frauds:

1. Card not present (CNP) / skimming

In this type of fraud, the fraudster does not have your physical card. Instead, your credit card information is being used to perform offline or online transactions. The card data can be copied either by taking it manually or by using an illegal card reader.

2. Loss or theft of physical card 

This fraud takes place when the fraudster has stolen your physical card or made a duplicate of it. The card can then be used for their financial gain.

3. Phishing

Phishing is where the fraudster or scammer tries to get your credit card details by convincing you that there are offering exciting offers on products / services. For example, they try getting your information by tricking you that you have won a contest and that your credit card details are needed to transfer bonus points. This scam can be performed via phone calls or emails.

4. Cyberattacks

This is a dangerous act where cyber criminals hack various payment servers and steal client data, which would include all your details. This data is then used to create fake accounts or make fraudulent transactions.

5. Dumpster diving

If you are someone who carelessly dumps your credit card statements and bills, you need to think twice before doing so. These statements are collected by scammers, which gives them access to your card and bank details. The details are then used for fraudulent purchases and transactions.

6. Capturing keystrokes

Keystroke logging is used by hackers with the help of specific software to get your credit card details. They send emails or messages that contain links. When you click on the link, you are redirected to install malware. This process happens without your knowledge.

Once the malware is installed, every key pressed gets recorded; which means all your IDs, passwords, and data gets recorded. Make sure you have antivirus software installed on your devices.

7. SIM swapping

At times, fraudsters pretend to be you and contact your mobile operator to place a request for a duplicate SIM card. They also request to deactivate the original SIM card.

This enables the fraudster to receive the OTPs for credit card purchases or even create new IDs and transact using your card details. 

8. Identity theft

This fraud takes place when a criminal steals your documents and identity. They use the information to get credit cards and other documents under your name. This gives them the power to conduct various monetary scams using your identity. You must always be aware of where your documents are being submitted and used.

Detecting a credit card fraud

1. You must review your credit card statement carefully. Watch out for any suspicious charges or transactions made. Ensure every transaction reflected in your statement has been authorised by you.
   
   
2. These days, scammers try to convince and con you into handing over your card information by offering deals, prizes and bonus points. Social media platforms have become a space for scammers to trap users into believing they have won contests and other prizes.

Make sure you cross-check the accounts you connect with and always remember that no company or bank asks you for your card details.

• If you have received a credit card statement for cards you have never applied for and never used, this could be a possible fraud!

Steps to report a credit card fraud

If you have lost your credit card or have identified fraudulent transactions made using your card, these are the steps that you must follow:

1. Collect data: Collect all data that supports your claim of your card being misused. Collect the credit card statements and highlight the suspicious / fraudulent transactions. Record any other data likeSMS, emails, and screenshots of any apps downloaded. 
   
   
2. Contact your credit card provider: Contact the customer care of your bank and get your credit card blocked. Inform them of the fraudulent transactions that have been made using your card. These days, you can even lock your card immediately using the bank’s mobile app.

For instance, IndusInd Bank’s IndusMobile app allows you to manage your credit card efficiently. You can monitor your transaction statements, pay your bills and even blockyour IndusInd Bank Credit Card instantly.

• Register an FIR: You must file an FIR at the nearest police station. The FIR copy acts as a proof of theft and also protects the complainant against any possible misuse and fraud. Moreover, a copy of the FIR can come in handy if demanded by the bank.

IndusInd Bank offers a unique Total Protect program that covers you for the amount equal to your credit card’s credit limit up to 48 hours prior to you reporting the loss of your card. It is available on your add-on cards too. Thus, with IndusInd Bank Credit Cards, you need not worry about fraudulent transactions! 

Conclusion

Remember that protecting your personal data and credit cards from fraud requires staying alert and educating yourself constantly. Adopt secure practices and be cautious of where you punch in your details to prevent credit card fraud. Get yourself a credit card that not only offers a multitude of benefits but also protects you from fraudulent transactions.

IndusInd Bank Credit Cards and their Total Protect feature can help you stay safe from frauds and the harm they can cause. Moreover, you can benefit from the host of rewards and discounts that the multitude of IndusInd Bank Credit Cards offer on different lifestyle purchases. So what are you waiting for? Apply now for IndusInd Bank Instant Credit Cards!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.