Credit card frauds have sadly become common across the globe. The problem does not lie in the fact that these frauds are increasing but, in the fact that the customers are unaware of how they occur. This awareness is required to be smarter and keep these scams at bay. For this awareness, it is essential to know the different credit card frauds that are occurring these days.
Application Identity Theft
This kind of fraud occurs when someone else applies for a credit card or credit using your name. Such a fraudster will first try to get the supporting documents in an illicit way to validate a fake application.
Luckily, the credit card issuing organization has some counteractive measures to prevent such kind of fraud. One of them is to ask for only original documents. Another one is to call the person in whose name the application is made for confirming identity.
Nevertheless, as a workaround, the fraudsters tend to counterfeit documents and give fake contact numbers as well as work or home address. Still, this can be verified against the original documents.
E-commerce Cookies Misuse
For most of us, online shopping is perhaps the most loved activity. It has become common to buy from a myriad of things, ranging right from groceries to gadgets from different shopping portals. While searching for any product on a shopping site, cookies are created to store your search details and then provide links to similar other products of your interest.
While this is useful, it also has an adverse impact if used by a fraudster. Such a person can then use the details in cookies to send you e-mails that may seem like coming from your credit card company or bank.
Well, you should never open the links given in such e-mails regardless of how authentic they may appear to you. For any new offer or doubt clarification, it is wise to go to the official website of the bank.
Most credit card frauds happen through a phone call. Many credit card owners have come across such fraudsters who disguise themselves as bank officials or customer service representatives. They typically proceed by asking for credit card details such as expiry date, card number, and even CVV and pin number by conveying genuine reasons.
Some of these reasons are: The card has been expired, the card is about to get updated with new features, and the card is going to give a lifetime or one-time offer. This is how the fraudsters make you fall into a trap. Then, it takes no time for them to withdraw cash from your account.
Well, the fact is that no bank or credit card company official will ask for any card or account details. Any update or offer is directly posted on the official website.
Herein, a device takes the details from the magnetic stripe of a credit card. This device is a credit card skimmer affixed to a merchant’s terminal or ATM. These details are then used to create a fake card or trigger a Card-Not-Present (CNP) scam.
This fraud occurs when an illicit person knows the card’s number and its expiry date. It happens via an e-mail or a call. The fraudster uses your card without having it physically. Such fraud is now kept at bay with the mandate of submitting the card verification code. However, if the fraudster knows your account number, it is possible to know the code too.
These credit card frauds are the most common ones to occur anywhere across the planet. The credit card owners just need to be careful while applying for and using these cards.