Increased digitization has resulted in a significant increase in online transactions. Credit card issuance and usage have witnessed tremendous growth. While this is a really convenient and hassle free option, it opens up the possibilities of fraud. Credit card fraud is on the rise, and if you’ve fallen victim, you are not alone. Credit card fraud can occur when unauthorized users gain access to an individual’s credit card information, in order to make purchases, other transactions, or open new accounts. It is a form of identity theft. If you’re a victim of fraud, you may incur unauthorized charges that can result in steep bills. And if your credit card balance increases drastically, you may risk damage to your credit score. This can be with an existing account, via theft of your physical credit card or your account numbers and PINs, or by opening new credit card accounts in your name.
How Credit Card Fraud occurs?
Lost or stolen card fraud: This old-school credit card theft can happen when a fraudster uses a card you’ve lost
Skimming: This happens when the information in your card’s magnetic strip is copied by inserting it in an electronic device.
Account takeover: Account takeover fraud occurs when cybercriminals gain access to your online accounts and use them to withdraw money, make purchases or extract information.
Phishing: Phishing is one of the most common methods used to steal personal data. These are email traps, where you receive emails from people supposedly working at banks or government agencies, asking for confidential details pertaining to your account or credit card.
Steps to be taken if you are a victim of credit card fraud:
Inform the bank immediately
If you notice any kind of suspicious transaction on your credit/debit card, inform the bank/ card issuer immediately. One should lodge a formal complaint with the bank and ideally call up the customer care number to block the card or the account immediately. Once the card issuer or the bank has been informed about the fraudulent transaction, one should file a written compliant with the nearest police station.
Change your online passwords and PINs
Immediately change your online password and PINs related to your credit card account to prevent fraudsters from doing any further damage.
Closely monitor your account activity
This can be helpful if you are not sure how your information was compromised. Also, keep a close eye on your bank statements and if you notice any signs of fraud, immediately notify your credit card issuer.
Monitor your credit card statements and credit report.
Fraudulent charges can keep appearing on your card statements months after your card information is stolen.
Protect yourself from credit card fraud:
Destroy any bill or document that has your credit card information, before discarding it.
Review your card statements regularly. If you see any unfamiliar purchases, contact the card issuer immediately.
Periodically review your credit reports for unfamiliar inquiries and loan or credit card accounts you didn’t open.
Be vigilant online. Stay safe from phishing and other online scams.
Secure your physical cards.
Do not give out your credit card information when someone calls or emails you.
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