With Credit Card Scam increasing – internet users have become relatively more aware of its various forms. However, there are still many who give away credit card numbers and personal information online only to regret it later. Credit card scam involves customers being misled into believing that they will be provided with good services, only to find afterward that they have to pay more money.
Common Credit Card Scams
When in the market for a credit card, you need to do your homework before you even consider submitting an application for any type of offer. There are many different types of credit cards, all of which have different reward programs, rates, and terms. This makes it very difficult to decide what card is best for your needs. In addition, there are card issuers that look to take advantage of consumers that are not familiar with credit cards or how they work. If you fall prey to one of these companies, you can be taken for quite a ride financially. Featured below is information detailing some of the more common scams companies use. If you can spot these tricks during your research, you can steer clear from the offending card offer/company!
Different Types of Credit Card Scams
1. Application Fraud
This can be an assumed identity fraud where an individual pretends to be someone that he is not. Or it can be a financial scam where an individual provides false financial details in order to acquire credit.
2. Lost or Stolen Credit Cards
With the advent of modern technology, even the credit card scams have gone high tech. Nowadays, tricksters produce fake credit cards and trick merchants. They also copy information from the magnetic band on the reverse of the credit card, or the information stored on the smart chip.
3. Postal Intercept Deception
This happens when a card is stolen from the postal service prior to it reaching its owner. Postal intercept fraud has become a less famous aspect of credit card fraud, especially in the EU.
This is primarily due to the successful monitoring of those who work for the postal service. Also, the card issuers have also started to take various safeguards such as requiring personal identity confirmation at the point of credit card activation.
4. Site Cloning and False Merchant Sites
On the Internet, these are fast becoming a common technique of credit card scams for many fraudsters with a proficient aptitude for hacking. They make people provide their credit card details without realizing they have been tricked.
The scam artists use names of known (and trusted) establishments such as banks and credit card companies. They send you an email asking you to confirm critical information about your account. You click on a link and you’re taken to an authentic-looking website, where you enter your username, password, name, address etc. You’ve just given your information to a scam artist.
6. Card switch
After paying your restaurant bill, the waiter hands you back “your” credit card. You put it away and sign your slip (and perhaps even leave a generous tip). You attempt to use it elsewhere, but it is declined. On examining it, you realize that it is actually not your credit card.
7. The Keystroke Logger
Also known as key logger, This is a piece of malicious software, spyware, or malware, that captures keystrokes you are typing on your computer and reports it back to the scammer via the internet. When you make an online purchase, the scammer is able to obtain your name, credit card number, address, security code and all. Keystroke loggers are typically downloaded by the person without realizing it.
Credit cards that charge fees in advance
It is very common for credit card companies to offer cards with extremely desirable terms with low-interest rates and generous limits. They boast that this offer is available for people of all credit types, including bad credit. The only requirement for approval is that the applicant has to pay a small fee in advance. The creditor claims that this fee is either required to process your paperwork or is needed in order to get you pre-approved. Unfortunately, once the fee is paid, the credit card company will disappear with your money and you will never hear or see from them again. Never pay any fees upfront in order to get approved for a credit card, period.
Precautions To Be Taken To Avoid Credit Card Scams
- The best way to avoid credit card scams is to be on the lookout for any fraudulent activity. Be alert whenever you are using your credit card. Whenever you give your card to the merchant, keep an eye on it. See what he is doing and take it back as soon as possible. Do not let it go out of sight for too long.
- You must not give out your credit card number on the phone to someone you do not know. The trickster may call you up pretending to be from the card company or some other company you do business with. Still, do not give your card details to him. Insist on calling back on the number you have of the company.
- Do not respond to any email that asks you to disclose your credit card details. Be extra cautious of emails that ask you to click on a link and verify your financial information. They are mostly ‘phishing’ scams. If you want to check the site, do not click on the link. Instead, type out the ‘url’ on the address bar and check the authenticity of the site. Be careful not to provide credit card information on an unsecured website.
There are numerous ways to protect yourself from credit card scams. Also, you can get different types of leading software that are known for better protection against credit card scams. XA technologies offer the best software named XA Troop which uses advanced protection algorithms for better scam protection.