How to Prevent Credit Card Frauds

Although credit cards are a boon in the modern world they are often exposed to frauds and scams of different types. Banks and credit card companies are working proactively to offer increased security to the patrons but hackers and scammers are architecting innovative ways to trick card holders.

A sharp rise in credit card frauds

In the recent years there has been a surge of frauds and scams which are related to online transactions carried out through credit cards. The reports of ASSOCHAM-Mahindra SSG report reveals that 13301 cyber-crimes were reported in 2011 which rose to 300,000 in 2015. Among the cyber-crimes, credit card frauds top the list. Crimes related to credit cards sharply rose by 6 times.

ATM machines a common target

ATM machines are one of the favorite target for the fraudsters. They usually use advanced technological tools to target isolated ATM. Reports of scams bring light to a case where a group of foreign nationals were arrested by the Mumbai police and500 duplicate cards were confiscated. The group of hackers installed spy cameras near the card reading slots to capture the passwords which the customers entered in the ATM machine. They recorded the information to make duplicate cards and withdraw cash from other ATMs.

An example of skimming

Credit card fraudsters also target Point of Sale terminals at petrol pumps and shopping stores. In case you notice any attachment on the POS machine make sure that you raise a red flag. The card should always be swiped in your presence. This only reinstates the importance of being a vigilant customer and making use of credit cards with prudence. Recently Nisha Singh,a 32 year old lady advertising professional who works in Delhi travelled to London. She did her shopping with an add-on card which her husband had got for her. A couple of months after she returned to India she received an SMS asking her whether she had made transactions worth Rs.3.35 lakhs in Delhi. She sensed that something was not right and wrote a mail to the foreign bank. Soon she learnt that her card had been skimmed and nine transactions were made on her card which she did not use after returning from London.

How to prevent credit card frauds

• Don’t share credit card details with anybody
• Do not divulge the CVV number
• Carry out online transactions only in trusted websites
• When you get a new credit card it should be sealed
• Sign on the back of the card immediately after you receive it
• Closely monitor your account
• Memorize the PIN number and do not write it down anywhere
• Do not hand over your card to anyone else

Actions you can take

Here is a quick lowdown on what you should do in case of credit card frauds:

1. Inform the bank immediately: If you notice a fraudulent transaction in your bank account, irrespective of the amount make sure that you call or visit the bank. In case you are calling the customer care make a note of the customer executive’s reference number and name. If you submit a letter, keep a copy for yourself as well. Banks today are adopting measures to bring down the cases of fraud losses. They scrutinize the unusual transactions and crosscheck with the customer. The card issuers are making a shift towards more sophisticated cards.
2. Approach the ombudsman at the bank: After you have lodged a complaint and you do not receive a reply from the bank, you can approach the bank ombudsman. Check the jurisdiction under which you fall and once you know whom to contact send him a letter, fax or an email. Usually the bank ombudsman will give a ruling within 30 days.
3. Approach the appellate authority: If the ruling of the ombudsman does not satisfy you or if the bank has rejected your complaint you can approach the appellate authority who is the governor of RBI.
4. Approach the criminal court: After you have been duped by fraudsters you can consider moving the court. All you need to do is lodge a first information report or an FIR at the police station.