Credit Card Scams: Its Common Types and How to Prevent Them
Credit card scams occur when a thief or fraudster makes unlawful purchases in your name using your stolen credit card or the information on the credit card. Additionally, the fraudster might use your account to obtain cash advances. Credit card fraud is a common occurrence that could immensely affect you.
Credit Card scams can also occur when thieves or fraudsters get your credit card information and use it to make transactions using your current accounts, without your knowledge or agreement. As a result, you should use your credit card with extreme caution and regularly monitor all purchases.
Types of Credit Card Frauds
Credit card scams can be carried out in several ways. A handful of these scams are listed below in the hopes that they will inspire you to be on the lookout for them.
It uses a tiny electronic gadget called a “skimmer.” Credit card skimming is a sort of credit card fraud, used to steal credit card information. After a credit card has been swiped, a “skimmer” reads and stores the data from the card’s magnetic strip. A blank credit card’s magnetic stripe can be cloned.
Phishing is a type of credit card fraud in which the cardholder receives an email claiming to be from a reputable financial organization or a bank which they are familiar with. The cardholder is then directed to a fake website after clicking on a link in the email, which further prompts them for personal information.
Since the URL they receive in their inbox seems natural, most individuals fall for this con. Banks never email customers requesting for their confidential information online.
Online Shopping Scams
To steal customers’ credit card information, some con artists create bogus e-commerce websites. They might make these websites in a way that they resemble real shops, replete with trademarks, expert (stolen) photographs, and “https” (the lock sign) in the URL.
The website creator could steal your card information by permitting you to use your credit card on their platform—some websites only accept payment methods that are more difficult to reverse, like a wire transfer or cryptocurrency. It might also take several days or weeks to realize that the item you were promised with wouldn’t be delivered.
Credit Card Skimming
Since there is no one persuading you into disclosing any information, credit card skimming isn’t like every other scam. On top of (or inside) credit card scanners, however, are occasionally attached skimming and shimming devices. If your card is swiped, they can then copy the information on it, and the thieves can either sell the data online or use it to generate counterfeit credit cards.
Con artists keep an eye on a public Wi-Fi network or build and broadcast their Wi-Fi signal. If you use your credit card while you are connected to such a public network, they can take your credit card information from it, or they may infect your computer with malware so they can steal it later.
Credit Card Application Scams
This kind of credit card theft happens when con artists use someone else’s identity to get a credit card. In addition, they might support their application with stolen documents and private data.
Banks typically have stringent credit card application procedures and rigorous background checks to prevent fraud. Scammers, however, can also alter your current information using and replacing it with their information.
Credit Card Keyboard Capturing
It is one of the newest methods to use internet transactions to commit credit card theft. Your card information is being collected here via fraudulent software. Once you click on the dubious link, the software is instantly downloaded and installed on your computer. The device then keeps track of each key you press to collect your credit card information.
Theft or Loss of Card
If your credit card is lost, there is a high likelihood that you will become a victim of credit card fraud that is if the card ends up in the wrong hands. Therefore, it is suggested that you immediately notify the authorities about your misplaced card as a precaution.
Four Precautions to Help Prevent Credit Card Fraud
As technology keeps advancing, introducing a more comfortable living, dishonest ways to cheat credit card holders also evolve. No matter how well-secured your wallet is, fraudsters can use your credit cards without your knowledge. It might be a result of you handling your credit card information carelessly someplace, at some point.
Take the following steps to avoid being duped by scam artists:
Avoid sharing card information
Among the most popular methods that credit card scams implement to obtain sensitive information from cardholders, the frequently used approach is where they dial a targeted number and impersonate a customer service representative.
Therefore, it would be beneficial to exercise extra caution when giving out critical information over the phone, such as your credit card number. Never respond to phone calls asking for such information, asserting to be from a bank or financial institution.
When speaking with bank staff or calling their helpline number, only provide your credit card information if it is necessary.
Keep credit cards in secure places
Your wallet or purse containing your credit cards should be kept safely and within your reach to prevent them from being stolen.
Additionally, using fewer credit cards while making purchases is a safer option than using multiple cards. Return the card once you have completed paying for the item.
Use credit cards safely on the Internet
As the number of online buyers is increasing, scammers have moved online to trap cardholders. Avoid clicking on inactive links that request your credit card information.
These URLs could seem authentic, but they’re phishing attempts, which are unethical ways that scammers use to obtain your personal information. Neither financial institutions nor credit card providers ever requests such information online.
Be an alert customer
Keep an eye on your detailed monthly credit card statements. It is essential to look into and report any irregularities, unexpected charges, or transactions to your credit card provider.
Report the incident immediately in the event of theft or fraud to avoid paying for any dealings that you haven’t initiated from your card.
Another sort of credit card fraud is account takeover. The credit card business receives calls from scammers while they pose as you.
They might have enough personally identifiable information to persuade the credit card company that they are you because they can buy a lot of identity information on the dark web.
These crooks may also subsequently alter the mailing address for your statements so that you are unaware of the charges made on your account. Even worse, new cards may be created and distributed to them.
Malware on your computer that takes your bank login is one-way of hackers obtaining this information. This kind of credit card fraud is risky if it involves debit cards and your bank account. You can suffer a total loss.
Identity theft in the form of credit card fraud occurs when someone steals another person’s credit card information without their consent to make transactions or withdraw money from their account.