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Currently, there are more than 41 million active credit cards in circulation; and every year approximately 8.4 million new credit card users signup with various financial institutions for new cards.
However, despite the massive penetration of credit cards amongst all classes of Indian consumers, the threat of credit card fraud is still an ever-present danger. Most card companies integrate various security measures to prevent such unfortunate incidents from happening. But with access to modern technology and better worldwide communication network, fraudulent entities are implementing new methods to steal valuable credit card details for misuse.
As a credit card user, you should have a thorough understanding of some of the methods used for card data theft and should know how to prevent such an incident. So, let’s take a look at the different types of credit card frauds in India and their deterrents.
Over the internet
There are several methods how impostors steal credit card information online. Most of these involve imitating a representative from your financial institution, luring you into a false website to log credit card details, etc. Here are some of the most common methods.
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Phishing – Phishing is one of the most common types of credit card frauds in India. Fraudsters usually send false emails impersonating your financial institution and trick you into sharing your credit card number, CVV, and PIN.
Phishing still poses a significant risk despite stricter regulations from various Government bodies regulating credit cards in India. A large number of first-time cardholders and relatively limited awareness overall allow imposters to dupe many users.
Fortunately, preventing a phishing attack is relatively easy. You can check the details of an email’s sender to identify whether it is from a legitimate source or not. Credit card companies will also not ask for your valuable information over an email.
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Keystroke logging – Imposters usually also send keylogger software programs with emails to register your computer’s key presses and use that information to perform credit card fraud. To prevent this, you should avoid downloading, opening, and preferably clicking on any attachment that you have not requested in an email.
Over the phone
Scammers utilise both phone calls and SMSs to impersonate as officials and steal your credit card details. It is considered as a type of identity theft and is known as vishing in the financial market.
A simple yet effective method to dodge such frauds is to avoid stating any privy credit card information over phone or SMS. Your financial institution will never communicate over phone or text message asking for your credit card details including card number, CVV, etc. and they are likely to warn you about such activities when you apply for a credit card. It is best to avoid any such calls and SMS whenever possible.
At physical locations
Credit card skimming is one of the most common types of credit card fraud in India that may happen at a merchant or POS station. In these cases, dishonest individuals use data skimming devices to copy card information when you swipe one for a transaction.
You can avoid card skimming if you stay aware during a transaction. Do not allow any individual to swipe your card more than once; also, don’t let anyone use it on devices that look different than POS terminals or handhelds.
Most credit card companies offer stringent forms of security to protect against common credit card hacking and fraud techniques. For example, Bajaj Finserv RBL Bank SuperCard comes with zero liability fraud cover and in-hand security features that prevent both online theft and unauthorised transactions over regular storefronts. You can also control your card usage and review your transaction details on the RBL MyCard application. These features make SuperCard one of the most secure credit cards in the Indian financial market.
Bajaj Finserv also provides pre-approved offers on credit cards, personal loans, business loans, home loans, and a range of other financial products. Such offers simplify the process of availing financing and help you save time. You only have to share some necessary information to check your pre-approved offer.
Preventing credit card fraud requires good situational awareness and understanding of the specifics of how imposters lure and gather data from a victim. The above mentioned tips will help you avoid unauthorised transactions and thefts.
