Credit Card Frauds and How to Protect Yourself

I have been using credit card since my college days and I remember the risk involved in using a credit card. A number of times I have been cheated, from credit card robbery to skimming. I lost thousands of rupees because of credit card theft or fraud.

Hence, I decided to pen down an article using my experience to aware people who are using credit cards.

I thought it is my responsibility to help you guys from credit card frauds.

As you know we use credit card for various purpose from online transaction to offline swapping. You need to be careful every time you pull out your credit card.

credit card fraud protection

So you need to know what different types of credit card theft are and how you can protect yourself from it.

Identify Fraud

This is the most common fraud that could happen. They are of two types

Application Fraud

Application fraud is nothing but when a crook make use of stolen or fudged documents to open an account using someone else name without any permission.

These criminals would steal documents like bank statements or your utility bills to generate their personal information.

In other words they may create a forged document.

Hacking of Account

Second is hacking of account.

Here, a hacker would hack or takeover your account by accumulating information about a person and then asking their card issuer by impersonating as if they are bonafide or genuine credit cardholder.

Then the criminal would ask to redirect the mail to a new address. Criminal will report for the credit card theft and he would ask for the new replacement to be sent to his new address.

That is how it works.

Skimming

Skimming is also a common method used by criminals to steal your credit card information.

A thief would try to get your credit card information through various ways.

They would steal your credit card number by

  1. Taking the photocopy of your receipts and bills.
  2. They could use an electronic device called Skimmer to spy or swipe the credit card number of other thousands of victim like you.
  3. Using a small keypad for unobtrusively transcribing the 3 to 4 digit card security code not present on the magnetic strip.

So these are the ways through which a thief could steal your credit card number and take all your money.

This could happen when you are at

  1. When you are in restaurants or shopping somewhere.
  2. At petrol pump when skimmer is placed in the fuel dispenser.
  3. At Call centers where information is stored of thousands of credit card holders.

ATM

I have to dedicate a special paragraph to make you aware that these thefts happen often at ATMs. I am a victim of it because my credit card information was stolen from the ATM itself.

They can put a device or a skimmer at the card slot of an ATM which could read the magnetic strip when a user swipes their card in it.

They could also use spy cameras in the ATM booth to steal your credit card number when you type in.

Another method used is a keypad overlay that matches up with the buttons of the legitimate keypad below it and presses them when operated. Then it records and wirelessly sends the keylog of the PIN entered outside to the thief.

Online Credit Card Theft or Phishing

This is the modern form of credit card theft or fraud. This types of frauds are growing at a faster rate.

Here hackers roaming around the Internet would lead an online visitor to a website which looks genuine and quite authoritative.

They would claim that website is a bank or a credit card company.

The design, look and feel of the website absolutely resembles the website of an original company. They would look into small details while creating it.

Therefore entire process of keying in your credit card information looks safe. But once you click the submit button the entire credit card information falls into the criminals hand and you lose all your money.

These sites are run from countries like China, Nigeria. Criminals sitting there run such fake website to dupe you and you fell into their trap.

Card Not Present

Here the physical credit card is not used because while placing any order online you have to give the number of the credit card.

Thief could use the stolen credit cards without exposing themselves.

How Do You Protect Yourself From Such Frauds

You have to be careful in two situations.

While using physical credit card and other is without presence of credit card.

Online Transaction

  • Tip1: Use the card only on websites that has https as starting web address not http. ‘S’ is for secured.
  • Tip2: See for the lock sign in the address bar or bottom of the screen.
  • Tip3: If an Indian website does not ask for the authentication then do not make the transaction. Always use password a one-time password provided by your bank and the secured access password via Verified by Visa and Master secure code. Otherwise do not more forward. International sites does not ask for passwords so check their credibility before making a transaction.
  • Tip4: Always check for security certificates on the payment gateways sites.
  • Tip5: Make use of virtual credit card instead of real credit card. Generate the virtual credit card number after registration with bank. Your credit card limit is not exposed.
  • Tip6: The most important thing to realize is keep your credit limit minimum.

Offline Transaction

Now comes the credit card theft for offline transaction. You have to be careful at certain places while you are swiping the credit card. Here the only problem is skimmer.

  • Tip1: In restaurant or bar or shopping mall, do not let your credit card out of your sight. Moreover, while making transaction make sure that any electronic gadget or skimmer is not placed under the slot or the device.
  • Tip2: You could also use chip and PIN based cards. It has a SIM-card like chip on the front and can be used only with 4 digit PIN.
  • Tip3: Always blacken the CVV number.
  • Tip4: In ATM or other places see that there are no cameras or devices installed for spying you.
  • Tip5: Lastly always keep your eyes open before you take out your credit card from the wallet.

So these were certain tips that could save you from a credit card theft or fraud. First you need to know different types of credit card frauds then how you can protect yourself from it.

Read this article and start using your credit card smartly.

74 COMMENTS

  1. hi im bella, i had my friend help me hack my ex’s email cause i suspected he was cheating. all he asked for was a his phone number. he’s email is [email protected] u need help tell him isabella referred you to him and he’ll help. good luck

  2. Dear Priya , thanks for Initiative ,
    Same story was with me in 2010 when i got call from bank around 2310 hrs that i have finished my credit limit on my card. That time i was sleeping when enquire more i found the detail that some one purchased airlines ticket on my card so i immediatly blocked my card and done required processing .

    As i feel the above info in this article is 100 % true because i have given some personal info for issuing new card to other bank ‘s agent in real they are not bank agent but fraud .

  3. Hiiii… Priya…….!!!!!!!!!

    This article is so informative…..i found it worth sparing some mins while going thru…….ys really very compact & crisp in its deliberation abt d topic discussed…..i wd like to express some of my practical experiences & views after a thorough observation of dis article…….ys….while making online transactions we need to beware of phishing attacks…..we need to understand not to entertain e-mails coming from unknown sources asking to claim a lottery or such things strictly & in totality…….Again some sites provide virtual keyboard….. to avoid keystroke logs to thieves….We’d learn to essentially practice this simple exercise to keep ourselves safe & happy wherever it can b executed……….moreover we should be careful to see & check d gadget(PC’s; Laptops; Notebooks etc.) before using it..anywhere else……..in offices….cyber-cafe’s etc…….that if any key-logging software isn’t installed…….otherwise we might fell an easy prey & get victimized & vivisected as far as Online Theft or Scam is concerned……most importantly we’d create a unique strong password…….& keep it written in safe place…….avoid handing over to anyone without a reason…….these r some of my personal views & practices….i prefer to exercise……..while making online transactions……& ys Only attentive & careful use can make us a Happy User when Offline use of Credit Card or Money Transaction is concerned………in a nutshell…..d info provided by u shows a rigorous effort & huge research…….& affinity to provide a common man d Safety-Shield from Spammers, Swindlers & Scammers……Well Congo & Best Wishes from my side……:)

    With Warm Regards,
    Abhinav Saras

  4. Hello Priya,
    Thanks for sharing the information. It is really useful.
    I am a freelance writer by profession. Can you please guide me to some useful work from home options.
    Kindly help me to find the right projects and work.

    • Thanks priya for displaying useful information. This is really useful for everyone..

      Vijay

    • One happening I would like to share with all of you.

      one day my neighbor’s wife received his husbands new credit card at his residence. She forget to tell her husband. After 2 days one boy visited his home claiming that I am banker and you wrongly we have delivered you wrong card. Please carry this card I will dispose in front of you. She was housewife and did the same. She has carried that new card. Boy after taking that card told to carry scissor so that I can dispose in front of you. She went inside to carry scissor that time he replace that card with other one. When she back with scissor he cut that another card in pieces and handed over her an another card. after 2 hrs of this exercise his husband got a SMS that Rs 90 K has been transacted with your credit card. He telephoned to her wife and than her wife told the full story. Although Police has caught that person. He was courier boy.

      So be careful…

  5. your aricle in very nice. But why did you given the wrong name of urs. your name is not PRIYA , ur name in Mr. Pritam Nagrale.

  6. I use my credit card at selected shops like, R Mall,Big Bazar,Easyday,DMart at thane.
    for payment of MSEDCL,MTNL,VODAFONE I have registered with Bill Pay Desk of HDFC Bank and hence
    pay through these without using credit or debit card.I do not give my card details to any one including bank personnel.
    I keep my card at home and take with me only when I have to purchase
    HDFC bank informs what precautions are to be taken for protection from time to time and I strictly adhere with them

  7. Thnx Priya. Always Change ur Credit Card Password Once in a week. Its a right option to stop these type of frauds.

  8. thank u 4 sharing such valuable information , i really am gonna be alert an wish u a theft 4ee life 🙂 . Hope 2 c u soon. U wer sayin about fake key-pads a used which transfer d info related 2 card through wireless, this is primarily seen in tourist places……….I would definitely share it wid my near an dear 1s…….

  9. Thanks for sharing the vital information for saving one and all form the prevalent frauds being done on Credit Cards.

  10. priya
    first of all i sincerely congrats u for such a vivid explanation about various kinds of frauds nd its actual awareness.u know i m now servicing as a manager in u co bank based on kolkata.i used to issue a number of ATM cards regularly.my experience says a fraud may also b taken place due to our proper awareness nd alertness,which u hve not mentioned .a card holder in many cases also responsible for their lack of actual knowledge.its a fashion of our todays society to maintain differents kinds of cards in their possession. hope we will converse again in this regard if u permits…………………………..prabir sengupta.

  11. Thanks Priya for sharing such an information with all of us. We will not only be careful but will also crate awareness for such kind of frauds.

    • dear priya , thanks for your info i shall careful now. touch wood i am safe till now .

  12. Hi Priya,
    These are useful. By the way, your website is http: not secured. 😛
    Never mind, just kidding.

    Happy texting!
    Dilli

    • Hello Dilli,

      http is not required on sites where you are reading information. You need to check https only when you are going to make any transaction through your credit card, debit card or netbanking.

  13. wonder full write
    this information is very useful for those who do transaction ever day or often and often

  14. Hello Priya,
    The piece of article is really informative and enlightening as well.

    Regards
    Southir

  15. My father lost my card and before he could take action 10,000 was drawn 3 days back later we got it inactive. The most important info I want to give is forget 10,000k, when my father went to police station they snatched the complaint paper and they forced him to complaint has only the card lost hence required and FIR for new card, they did not want him to mention about the crime done by the person who stole the card and withdrew 10000/- Any light on this…

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