You might have heard about all these credit card frauds, and especially, they are the type of scams that take place when someone uses someone else’s credit card and that too, illegally. These are the type of frauds which are noted out when someone uses a credit card to purchase something or to get out something from the bank.
It is a sort of identity theft because someone is using your account and your card to get all the items. They are pretending to be you so that they can use your bank limit, and this is why it is called identity theft. There is one notion that when there is a reported credit card fraud case, then it means that someone is using your card to just get the product, but there can be so many other things done with the same.
37% of the credit card fraud, which happens occurs for the counterfeiting of these cards. Criminals who get your credit card will use the latest technology to skim the data of your card, which are labeled on to the magnetic strip. There is a ton of credit card fraud that happens over the year, and with the help of this article, you will know how it does.
Type of credit card fraud which happens
Credit card fraud can happen in a lot of ways. Here are some of them which are discussed below.
- Stolen Cards
These are the most common type of credit card fraud, which happens over time. This takes place when the credit card is stolen, and pretty much of the time, the stolen cards remain usable until you report about the theft of your stolen card, and then the card company blocks your card. If someone has taken your credit card recently and you have not filed in a complaint, then you should hurry up and present in one just now.
In these type of cases, the card which is stolen can be used to purchase products from the market and even pay for services that they get. Most of the time, the criminals are tracked with the help of their transaction that they have done with the help of the stolen card. This is because every time they use your card, there is a digital print that is left, and with the help of the edition, their location is tracked.
Another type of credit card fraud that happens is phishing. When it comes to the internet, then it is a vast medium through which credit card fraud happens. When the CNP happens, which is the short form for the card, not present, the merchant has to rely on the person who is giving the source of the credit card details. Hence when all the information is given to the merchant for the credit card like the cardholders’ name and the card number along with the CVV, then the merchant has to source out that item to the person who is purchasing it.
It is effortless to use the credit cards for the whole phishing process. If someone provides the correct information on your voucher, then the online merchant will automatically think that you are purchasing the item and will make the bill according to your name. The whole process is quite simple and easy to understand. Phishing emails are the relative process through which the information of the credit cards is stolen. This is when the criminals ask to give the knowledge on the credit card when someone is buying something online, and with that, they can use it.
3. Credit card skimming
This is the third type of credit card fraud that happens to people. Skimming occurs when you are providing your online credit card details for a genuine transaction. This is why the process is called skimming. Because when you are providing your credit card information to the vendor, then you have to make sure that all the correct details are put in. In other ways, the vendor might be thinking of ways to cheat and take your card details. These are the insider jobs that are done to make the information on someone else’s card and then use it for later. These skimmers will use a small electronic media to read the information on the map and then steal it from the magnetic tapes of the card. Skimming is a very difficult way of taking all the information on these cards.
This is another common type of credit card fraud that happens in India. It is a way through which criminals will provide your credit card information onto the website. If the information is right and then you accept it, then the criminals will get the source to your card. This is how carding pans out.
5. Application fraud
When you are operating your bill payment or others with an online method, then you have to file in applications that take place on the internet. This is called application fraud. Application fraud is done when you enter the details of your card during the time of paying these bills. There are a lot of sites on the internet, which will ask you to get your college fee or your utility bills ready when you fill up for the whole application. So it is better that you keep a lookout on the authenticity of these sites before use.
What are the precautionary steps you should take to stop yourself from being a victim of credit card fraud?
Here is the list of the precautionary steps to take related to your credit card.
- First of all, make sure that when you are opening a server on the internet, it does not look fishy to you. You need to have an authoritative server to get your work done. You cannot just put in your credit card details anywhere you seem for a fit.
- Always be vigilant when someone is asking for your credit card details. There are a lot of people out there who will provide your card details to everyone who asks for the same. So it is essential to be vigilant and be strict with the idea of sharing your card details.
- The CVV, which is called the credit Verification value, should not be disclosed to anyone. If you divulge your CVV to someone, then they can use your card for the illegal means. It can cause you a lot of damage shortly.
- While you are choosing for an online transaction than have a second thought about your vendor. Is your vendor trustworthy? Only opt for those sites which have been there for a long time. You need to have a verified site on the internet for your shopping ideas. Only then you can use your card for the payment method to be completed.
- There are a lot of people who are hungry for money, and whenever they see a span mail that asks for their credit card information in return for capital is something you should avoid. You need to understand that these are the fraud mails, and they can take your information and then use it for their benefit.
- You must keep a stark check on your account. If you follow a severe check on your mind, then you can understand how the amount is being sourced out and what type of deduction is being made to your account.
- And it is mentioned everywhere that you should never share or disclose your private information to someone. It is not discretionary, and you should never disclose your personal information to someone. You might never know who is planning behind your back.
Credit card frauds are increasing in number because people are not being careful with online transactions. So next time you are about to buy something online, check the source of your site and then put it into the payment details. Don’t be hasty because if you take one wrong step, your card can be misused.