The unscrupulous use of credit card through online or physical theft of account holder card’s number, name and personal information by using different techniques in order to perform unauthorized transactions from the breached account.
Credit card frauds are one of the most trending crimes now days, according to a report of Creditcards.com credit card frauds are on rise, but it’s not just a number of frauds cases the types of credit card scams are increasing excessively. .
Credit Card Frauds Punishment
According to the world laws of crimes, a credit card fraud crime would carry a fine of maximum $1000 and so on, and a sentence of up to one year in jail. As the value of the received property increases the penalty also increases. In Felony credit card fraud the amount of fine is $25,000 and 15 years in prison.
Techniques used by Scammers for Credit Card Frauds
Account Takeover
It is one of the most common form of credit card fraud. Basically the criminal somehow manage to get hold of your personal information and relevant documents by using your online platforms.
After that they will contact your credit card company and pretends to be you and provide all necessary information asking them to change your address and pass codes. After that a new replacement card will be sent to the fake address and the criminal will be able to make charges.
Fake Cards
Although it is hard and take lots of skills to create a fake card, but determined criminals do it with ease. In this technique the criminal creates a fake card by using a fake magnetic strip and a computer microchip and then linked the card with your credit card account.
In this way you never knows that your account has a fake duplicate card.
Never Rreceived Issue
In this case, you were expecting a new card or replacement one and a criminal is able to intercept these. The criminal will then register the card and they will use it to make purchases and more.
ID Breaching
In this technique, the criminal breaches in your account and collect all your information and your id and then opens a new account registered with your name. Thus uses this card for online purchase but this is easily traceable after the first transaction is made.
Stolen Card Frauds
In this technique, the criminal take card from your possession usually by stealing and then use it to make purchases. It is difficult to use these cards through machines as they require pin codes but can be used easily on online merchandise.
CNP frauds
Card Not Present fraud is a very common type of fraud technique, in which the criminal uses expiry date and account number and this can be done by using phone, mail and internet. It essentially means that someone is using your card without being in possession physically with your card. They can also encode your verification code as there is only 999 combinations of that.
Sources of Credit Fraud
As there are various types of credit card frauds, there also are different ways that the
- Criminals gather your personal information
- Looking to your personal record details
- Make scam phone calls to attain your information
- Send scam emails
- Going through your trash
- Stealing information from your mailboxes
- Using Stolen or lost cards
- Observing you while making transactions
How to Save Yourself From Frauds
Review Bills
Every time you use your card for a transaction or paying any bill always review your bills and confirm the deducted amount with your notified mails or texts. In this way you are prevented from skimming frauds and hidden charges.
Check Reports
Always check your credits reports at the end of the day and check if there is any irregular purchase in your report or not. If found something suspicious then immediately contact your credit card company.
Shop Online only from Good Companies
Always shop or purchase from good and well reputed companies, there are some companies which uses skimming and phishing through online sales and purchase, avoid such sites and immediately report them to cyber crime.
Make Strong Passwords and Keep Them Safe
Always maintain your passwords to the requirement of policies of your credit card company, make them strong and keep them safe, usually card companies prefers to change your passwords after every 60 days. In case to forget or lost your password contact your card company or seize your account till solution.
Avoid Giving out your Credit Card Information
More than 90% frauds happen due to the leak of your personal details and information records. Criminals use account takeover techniques and skimming to breach your account. Never share your personal information to anyone unless authorized person.
Never use public computer for logins
Never login from any public or local computers, hackers easy access to your IP address and collects all your account information. Some criminals use phishing websites, they give you random offers and once you login in that all your information are captured.
Tip: The biggest advantage of Debit card is safety, Try switing to it.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.
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