Knowing the process of fraud detection in credit cards is becoming increasingly crucial as instances of credit card misuse are increasing each year. Despite security advancements and encryption protocols, fraudsters and hackers can misuse your credit card.
Knowing the different ways used to commit fraud can help you protect your finances. So, read on to learn various types of frauds in credit cards, how to avoid them and more.
Here are the various types of fraud related to credit cards to be aware of.
Skimming is among the most common credit card frauds, where scammers steal your card information with the help of a device known as a skimmer. This device stores your data when you swipe your credit card through it.
Scammers then duplicate this information on another card. They can also copy your credit card information manually. With this information, scammers use your credit card to pay for goods and swindle you.
Phishing is a scam in which you get fake text messages, calls, or emails that seem legitimate. Such communication leads you to click on a link or enter your financial information. Scammers then record and use your login credentials to make transactions using your credit card.
This scam works on persuasion since you tend to believe that the sender or caller is genuine and from your credit card company. So, be careful about verifying the communication before you click on links and share your financial information.
This is a popular way used by hackers to steal your financial information by hacking your smartphone or laptop. Scammers can also extract information from financial institutions and companies you have transacted with.
These scams are difficult to catch, so you must perform online transactions carefully. Always check the authenticity of the websites or apps and avoid clicking on unknown links.
Keystroke capturing is yet another way that scammers use to steal personal information. Hackers send out links that download malware without your knowledge. After installation, this malware records every keystroke you make on your device.
When you make online payments, your IDs, passwords, account numbers and CVV can be recorded. This information is then misused. To prevent this, ensure your devices are protected by antimalware and that you are careful about clicking on unverified links.
Also Read: Learn To Use Credit Card Responsibly
Here are some tips that can help you stay protected.
Now that you know the types of fraud and tips for fraud detection in credit cards, be sure to use your care wisely. To get a credit card that prioritises your safety, get the Fibe Axis Bank Credit Card.
India’s first numberless card, this virtual credit card is linked directly to your UPI ID and adds another layer of security to your transactions. What’s more, it offers exclusive perks such as cashback, dining discounts and fuel surcharge waivers. Download the Fibe App or register on the website to apply for it today!
To avoid fraud related to credit cards, keep your credit card information private and monitor your statements regularly. Make purchases from genuine websites and avoid paper trails with your credit card information.
Fraud detection in credit card can be done by regularly checking your credit card statements. Look for any unauthorised transactions or other suspicious activities. You can also check the transaction alerts sent to your registered number.
Some common methods of credit card fraud include skimming, phishing, hacking and keystroke capturing, among others.
No, you also need to provide the PIN and OTP to carry out transactions using your credit card. However, sometimes hackers may use illegal methods and transfer money with just your credit card number and CVV.