How to Protect Yourself Against a Credit Card Fraud?


The period between 1st October 2019 and 31st December 2019 registered a total of Rs.128 crore as payments card and net banking fraud. Credit cards alone accounted for a whopping Rs.19.7 crore with around 6,117 fraud cases. In such a situation, the best bet to avoid credit card frauds is to gain more information about it and adopt measures that will help to lower its risks.

What is Credit Card Fraud?

It can be described as the illegal use of an individual’s credit card to withdraw cash or make unauthorized purchases. Each day, more credit cards are being exposed to the threat of online fraud and technological scams.

The most common credit card fraud types are as follow –

Stolen Credit Cards

It is probably the most common credit card fraud in India. Typically, a stolen card remains usable as long as cardholders do not inform their card provider and get the same blocked right away. 

Stealing Credit Card Information Via Calls and SMS

Fraudsters often impersonate bank officials on calls to steal credit card information like CVV number and PINS. They may even ask card users to share OTPs in the name of upgrading or verifying their credit card. 

Phishing Emails

It is also one of the most common examples of credit card fraud. Fraudsters tend to steal cardholders’ financial information by tricking them to reveal passwords and PINs through emails.

Card Skimming or Point of Sale Fraud

Typically, credit card skimming takes place at a merchant’s store or POS. It is mostly carried out through data skimming devices which are potent at reading and copying customer’s card information when swiped at a POS. 

Application Fraud

At the time of processing card applications, data is stolen to open credit card accounts in other’s names. Often utility bills and bank statements are used for this fraud.

Tips to Prevent Credit Card Fraud

By following a few simple tips, one can ensure credit card fraud prevention to a great extent.

Carry Cash and Card Separately

Individuals who tend to carry cash and credit cards in their wallet run the risk of losing both in case of theft or misplacement of wallet. However, those who prefer keeping both essentials together may consider availing Pocket Insurance & Subscriptions like Wallet Care from Bajaj Finserv.

Such an insurance policy will serve as a card protection plan, and will provide benefits like – a high sum insured, round-the-clock card blocking service and complimentary fraud protection cover, among others.

Track your Credit Card Statements

Card users must reconcile their credit card account and track their monthly statement closely to track unsupervised transactions or billing errors. Also, card users should be prompt when it comes to reporting suspicious credit card activity. Blocking cards quickly or conveying card providers about suspicious transactions immediately will help to prevent any major financial loss effectively.

Also Read: Know The Benefits Of Getting a Digital Personal Loan

Do not Disclose Credit Card Details over Phone Calls or Emails

To deal with phishing and vishing scams, one must be careful about the information they share over phone or internet. Card users must refrain from disclosing credit card details like CVV, PIN card, expiry date, etc. to unknown callers, company emails, etc. 

Also, they should not share personal and credit-oriented details on public computers or networks. As a safety precaution, individuals should consider availing fraudulent charges cover and limit exposure to unauthorised credit card transactions. 

Use Updated Anti-Virus Software and Transact Through Safe Websites

Individuals must opt for card transactions on websites they trust. They should look for secured websites to ensure the safety of their online transaction. Furthermore, they should install updated anti-virus software on their device to protect themselves against malicious malware and cyber thefts. To further ensure protection against identity theft or credit card frauds, one may avail an insurance policy like identity assure plan and get probable financial obligations covered.

Card users should not leave receipts lying around and must store them in a safe place to limit the risk of credit card frauds. Other than that, card users should be careful while dealing with a POS machine or while withdrawing cash from an ATM to identify and prevent scams effectively.