Here’s how credit card fraud happens and tips to protect yourself

Fraudsters now use special machines to clone copies of people’s credit cards. However, the most common card fraud occurs when a person’s card details get into the wrong hands. Sometimes this could be from online databases or email scams. Stolen or lost cards can also result in such frauds.

In 2018, for example, money stolen via card fraud totaled £844.8 million in the UK. The aftermath of credit card fraud is always a very painful experience. As such, you must take necessary precautions to prevent the occurrence of this at all costs. This article discusses common card frauds and ways to prevent credit card fraud.

Common credit card frauds and how they happen

Card-not-present (CNP) fraud

This kind of credit card fraud happens without the card being present. In this case, the scammers only use the card details or the card holder’s personal information. If the card is used for online purchases, such frauds are difficult to obstruct since the merchant can’t confirm the buyer’s identity.

Account takeover fraud

Account takeovers happen when the scammer contacts the credit card company disguised as the card owner. Most times, they change the PIN and passwords related to the card.

Credit card application fraud

In this kind of fraud, the scammer uses personal information stolen from someone to apply for cards from card companies. Such personal information could be their address, social security number, name, or birthday. The victims can only get to discover the fraud if they attempt to check their credit report or apply for a card.

Credit card skimming fraud

This kind of fraud happens when a scammer uses a special skimmer device to steal credit card information from cards. The machine does this by reading the magnetic strip on the flipside of the card. Scammers attach these skimmers to card reader machines at retail stores, ATMs, gas stations, etc.

Stolen or lost cards

This is the commonest of all kinds of credit card scams. This involves scammers stealing your card or using your missing card to make purchases or other transactions.

Tips to protect yourself from credit card fraud

1. Use strong passwords

The rate of card fraud activities continues to rise as new hacking technologies spring up by the day. Using strong passwords is one of the best ways to prevent scammers from easily hacking into your personal information online.

We recommend mixing letters, numbers, and other special characters. In addition, longer passwords are better.

2. Keep personal information private.

One of the ways hackers use to get your personal information is through insecure websites. Also, your credit card company may get hacked. One simple precaution is being wary of sites with the “your connection is not private” warnings.

Never enter your personal information on such sites as scammers can easily hack them. Moreover, be careful where you write passwords or never write them.

3. Be careful of links you open.

Scammers now access emails from databases. They send emails or SMSs to these individuals with clickable links, posing to be a reputable company or your bank. Sometimes, they may ask you for personal information or to claim a prize.

If you’re wary of a link, don’t click on it. In this case, the best thing to do is to delete the mail and block or add them to your spam list.

4. Conduct regular checks on your account

It’s easy to ignore minor charges on your card. However, we advise that you always check your account activity. You may not notice this until your credit score has been heavily damaged. Timely checks can help you notice and curb suspicious activities before it goes out of hand.

5. Report suspicious activities

Lastly, report suspicious activities on your account to the appropriate authorities. This also involves occasions of stolen cards or missing cards. Your card issuing company can block your card, preventing any transactions by the thief. Moreover, do this in time before it gets too late.

Conclusion

Credit card frauds are now more rampant than in recent years. There may be upward surges in the coming years as hacking technologies are becoming more popular. However, you can stay a step ahead by taking necessary precautions before it’s too late.

Some links could be phishing links used by scammers to steal your personal information. So, you must be wary of the links you click on. Also, use strong passwords and conduct regular checks on your account to stop things from getting out of hand. Lastly, report any suspicious activities or a missing or stolen card early.