Credit cards have become an integral part of our lifestyle. From petrol pumps and shopping stores to ordering food and paying utility bills; we need them for almost every payment we do on a regular basis. We can also use our debit cards to withdraw cash from any ATM and at any point in time.
However, with enormous number of advantages, manyatimes, these cards have been found vulnerable to frauds and cybersecurity attacks. However, with proper attention and precautions, we can minimize these threats substantially.
Here are some common credit card related frauds that can happen to anyone.
Credit Card Skimming
In this fraud, a small electronic device 'skimmer' is used to steal credit card details. This miniscule device is normally planted in the point of sale (PoS) machine. When the card is swiped through the machine, it also goes through the skimmer, and card details from the magnetic strip are captured on the device.
The stolen data is then copied to the magnetic strip of a blank credit or debit card. Hackers can use the cloned card to make purchase and withdraw cash from the ATM. The whole process is called as card skimming.
Make sure that your card is always swiped in your presence.
Spam emails are sent to the cardholder on behalf of leading banks and financial institutions. And when the user clicks on the link, they are routed to a fake bank website that asks their confidential account information. Majority of card holders are duped through these mails as they think that the link and website are genuine.
Majority of banks do not send such emails. Hence, if you receive any SMS or email asking to click on a link and provide confidential details then you should contact your bank for clarification.
In keystroke capturing, hackers con users into downloading a fraudulent software. Identity thieves then capture your keystroke while you type in your credit card details. The captured details are then leveraged to make online transactions.
To prevent this fraud, use a good antivirus on your smartphone and computer that can disable spyware and malware. Also, check out whether the website is starting with 'https' or not. 'http' website don't have a security layer and are more vulnerable to frauds.
SIM Swap Fraud
In SIM swap fraud, identity thieves show the fake identity of the cardholder to the mobile operator to get a duplicate SIM card. In the process, the actual number of the cardholder is deactivated. Now when the OTP is generated to authenticate the transaction, the message will go on the duplicate SIM card.
If you suspect of any such misdoing, you should immediately call your mobile operator. This might happen if you are suddenly receive a duplicate SIM request message or your phone goes out of service abruptly.
Always keep above mentioned points in mind to avoid any kind of financial fraud.