Credit Card is one of the most convenient, flexible as well as a safe method of payment which is accepted worldwide. The Credit Card Scam can take place often. For these banks have taken crucial steps to prevent customers and lessen down the frauds as much as possible.
What is Credit Card Scam?
The credit card scam can take place in various ways. Your credit card can be stolen or lost or might be used for purchasing the services and goods. The credit card scammer can attain the credit card number as well as expiry date and use this data to buy the merchandise via phone or over the internet. Else scammers can interfere with the payment transactions at the retailers to stole credit card data and create another forged credit card.
Primarily, credit card scam takes place when an individual uses any other individual credit card or account information to make any unauthorized transaction or access fund through cash advances. Most of the credit card fraud takes place online, and it happens more in stores or brick and mortar. Being a business owner, you can refuse this stress by identifying the fraudulent use of a credit card.
Moreover, credit card fraud is a part of widespread theft of identity, and your personal information is mainly used to take some loan or other credit on your name. Click here to find out Top 10 Credit Card Scams of all time.
Different Types of Credit Card Scam
Interest Rate Reduction Credit Card Scam
This scam takes the benefit of the frustrated user of credit card who wants to reduce the rates of credit card and pay off their balance quickly.
How does Interest Rate Reduction Scam work?
For this scam, you will get a pre-recorded call from an individual who says that you are eligible for a program which helps to reduce the interest rate and pay off the balance of credit card soon. Only the thing which you need to do is pay fee and register in the program, and then the company will reduce your interest credit card rate.
This call will sound like that it has come from the issuer of credit card and company might be having the details of your account.
This way, the scammer charges your credit card for services but will not help to reduce the interest rate as said. You will be charged even if you decline service.
Potential Scam on Account
Always warn your credit card issuer to warn about the scams done on your account can prevent you from the fraudulent charges in future. Moreover, scammers can use this kind of phone call to commit real fraud.
You will get a call from individuals who say they are from the department of the credit card issuer. They will tell you that there is some malicious activity done in your account and required some data from you to instigate whether your account is comprised.
The individuals who do scam contains the data such as name, address, account number, and they use this information to influence you and ensure that they are from the credit card department. They are just calling to get some more information which they can use for the scam. The additional information is the security code given on the back of the credit card.
The bank always Protect you
Bank as well as credit card companies usually take these credit card scams very seriously and have an extremely best security system and a team of scam experts to monitor the transaction, protect customers and preserve and detect scams done on credit card. For instance, bank systems automatically recognize malicious activity in the account of customer and take some steps to prevent from scams been occurred.
Mastercard, American Express does not have any liability policies for any illegal transactions. Customers are preserved while using the credit cards being issued by the banks and do not responsible for the fraudulent charges.
Information Confirmation for EVM Card
The industry of credit card is moving towards the EMV chip being enabled on credit cards to lower down the credit card scams. It has been done over several months when the issuers of credit card sending new cards period of new cards rather than all at once.
For this scam, scammers mainly posted as the issuer of credit card, email the customers with a warning that cardholder is required to update their sensitive information before getting a new chip card and replying to the email with the personal. When you click on the link and enter personal details will give scammers information which can be utilized to commit identity theft.
Receptionist Call from Fake Hotel
Hotel is one of the last places where you will expect to be defrauded, but still, you need to save while you are on vacation.
This kind of credit card scam happened while you are enjoying vacation or going out for a business trip in the middle of the night you will get a call from your hotel from some individual who claims to be a receptionist. They will ask your credit card information with a reason that there is some issue in the system of the hotel. But, if you give details of your credit card, the scammer can make use of this information to do the scam and take money in their account.
Free WiFi Credit Card Scam
Most of the individuals avoid paying for the WiFi and make use of free WiFi when you are in public. As using the free WiFi its not a safe choice.
For this kind of scam, scammers usually set up a free WiFi hotspot which does not need any password. Once, you are being connected to that WiFi; scammers access any information virtually which you send over the network. If you sign in to your bank account or credit card balance, the scammer can get the password and username. Moreover, sometimes they can get the data in browser history and decrypt information sent over a secure website.
Credit Card Skimming Scam
Most of the individual think that their credit cards are safe when they swipe it and hand them to any cashier for the transaction. But, there is always an issue that the credit card information gets stolen while swiping to pay for services and goods.
For the credit card skimming scam, scammers capture your credit card on a legal transaction. Sometimes, scammers might place skimming device over regular processing of credit card. Recently, the scammers have started placing skimmers over credit card readers at major retailers.
Sometimes, waitresses and cashiers have been recruited to become part of a skimming ring. Scammers usually swipe the credit card through a handheld skimming device while you are not looking.
Once the information on a credit card is skimmed, scammers use it to create a forged credit card and do scams.
Ways to Avoid Credit Card Scam
In today’s world, most of the time, credit card information is at risk for theft. Luckily, individuals can avoid credit card scam by keeping the data of credit card safe. Make sure to keep an eye on scammers who try to trap individuals in taking credit card details.
Here are some tips which can help to prevent Credit Card Scam
Keep Credit Card Safe
It is the easiest ways to stop a credit card scam. Make sure to place your credit card in wallet or purse close to body such that the scammers cannot snatch it.
If you are doing shopping in an area where is high traffic, make sure to carry a small purse as it is much harder to sneak or steal. Make sure that you take one credit or debit card in an area of high traffic. Leave another card at your home.
Some thieves take a picture of your credit card with their device or camera so, never leave credit card exploited.
After you have done with the transaction with your credit card, take it away instantly.
Destroy Things which have Credit Card Information
Never toss your credit card billing statement directly in the trash, as they contain credit card number. Make sure to shred it and then you throw it in the trash. The same thing has been applied to an old credit card, which is canceled or expired.
You can put the shred pieces in several trash bags as the eager thieves put back together with the shredded pages.
Never Sign the Receipt of Blank Credit Card
It is vital to check the amount on the arrival of your credit card before you sign it. If you are having a receipt of credit card that contains blank spaces, then write $0 in it or draw something before you do the sign. Else, the cashier can write any amount and sent that purchase to the issuer of a credit card.
Refuse to Provide Credit Card Information to Anyone
Just provide your credit call number and other different sensitive information on the calls which you initiate. But not only this, whenever you call issuer customer service, use the phone number which is given on the back of your credit card. Never provide a return with a call which is left on your mobile or sent in text or email. Well, it is tough to be sure that scammer left any fake number for you to call.
Never give the number of your credit card to any individuals who call you and ask about the number. The scammers of credit card are known to pose as credit card issuers and other businesses to trap and take the information of credit card.
Remain Secure with Credit Card Online
Never click on the link given on the email which looks like from your credit card company or bank or other business who can use your personal information, even if the email seems legal. These links are mostly phishing scams, and scammer usually traps you in entering your login information on their website. Despite going to the business website and then log in your account. Use privacy protection software to protect your credit card details online.
Ensure that you are completely careful when you are using the credit card online. Just enter your credit card number on the safe websites such that you can be entirely sure that they are legal. Look for Http:// in the address bar to ensure that the site is secure and have a lock in the lower right corner of the browser. Take these additional steps to avoid a credit card scam.
Immediately Report Stolen Credit Card
The faster you report the missing of your credit card, the faster your issuer of credit card cancels your credit card and prevent the scam. Quickly reporting your stolen credit card scam reduces the chances which you need to pay for the scamming charges done on your credit card. Write down the customer service number such that you can complain instantly.
Check Billing Statement Every Month
The unauthorized charges on the credit card are the first sign of scam of a credit card. So, if you notice any charge which you did not do, then whether it is small or large, report it immediately. Your credit card issuer will make you aware you about w whether you need to close an account or get another number to stop this credit card scam.
Keep the Password of Credit Card Strong
The number of your credit card has been stored in several places online. For instance, you might save your credit card on Amazon such that you can make a purchase instantly. Ensure to keep the password of your credit card active with some uppercase and lower case characters and refuse to share your password.
Verify ATM and Gas Station for Credit Card Skimmers
The scammers of credit card sometimes place the skimming device on credit card readers at ATM and gas stations. These skimmers confine and store information about your credit card. So, if you see anything malicious while you swipe the credit cards, then go to another gas station or ATM. Click here to learn about ATM Scams.
Read the blog “How Can You Avoid Debit Card Scams and Credit Card Scams?” to prevent Credit Card and Debit Card Scams.
What to Perform if you Become a Victim of Credit Card Scam?
If you got any charges on your credit card which you have not made or if you think that you have exploited information of your credit card, contact to the customer service of credit card issuer right away by using phone number which is given on the back of the card. The credit card issuer will take accurate hacks to protect you from the credit card scam.