Credit card is a type of payment card which allows a user to pay for their purchase without cash and cheque. It is issued by financial authorities. A certain amount is decided for a user of the card and credit card bill payment done according to the terms and conditions of that financial institution. The limit of credit is decided on a customer’s credit score and income. Credit cards play an essential role in our financial lives and are one of the most widely-used cashless payment methods.
Credit card frauds is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services, or to make payment to another account which is controlled by a criminal. The five types of credit card frauds in India that is:
#1. Card skimming
Card skimming is the most common credit card fraud and there are many cases of card skimming in India. In case of card skimming, a small electronic device called a skimmer is used to steal card information.
#2. Phishing and vishing attacks
Phishing emails are the fraudulent practice of sending emails purporting to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card information.
#3. Keystroke Logging
Online fraudsters or keystroke loggers might trick credit card holders into unintentionally installing malicious software through emails containing contaminated links.
Fraudsters might also use “pharming” to target cardholders. In pharming attacks, customers receive emails containing deals/discounts that look like they have seen sent by e-commerce websites.
#5. Impersonating bank officials
Some fraudsters also call credit card holders on their mobile phones and impersonate bank officials to steal their CVV numbers and PINs. They will convince the cardholders to reveal their payment details by saying that they want to upgrade or verify the credit cards. Some scammers ask the customers to provide the OTPs they have received on their mobile to verify their cards.
#6. Cards using other documents
This is also an easy form of identity theft, where new cards are made by the fraudster using personal information that is stolen from application forms or other lost or discarded documents.
#7. No- card fraud
Comprise 10% of all the losses and is completed without the physical card in hand. This can happen by giving your credit card information on the phone to shady telemarketers and deceptive internet sites that are promoting the sales of their non-existent goods and services.
#8. Public Wi-Fi
If you are used to carrying out transactions on your Smartphone, public Wi-Fi makes for a good hacking opportunity for thieves to steal your card details.
#9. SIM swap fraud
Here the fraudster contacts your mobile operator with fake identity proof and gets a duplicate SIM card. The operator deactivates your original SIM and the thief generates a one-time password (OTP) on the phone to conduct online transactions.
FAQ On Credit Card Frauds
Q.What is credit card frauds?
Answer: Credit card fraud happens when someone uses your stolen credit card or the information from that card to make unauthorized purchases in your name.
Q.How does credit card fraud occur?
Answer: Credit card fraud happens when consumers give their credit card number to unfamiliar individuals, when cards are lost or stolen.
Q.What is an unauthorized charge on my credit card?
Answer: An unauthorized charge is a purchase on your credit card that you did not make or permit anyone else to make. When your card is lost or stolen.
Q.How can I protect my credit cards?
Answer: Never give your credit card number or other personal information on the phone, unless you are able to verify that you are speaking with your financial institution or a merchant you trust.
Q.How do I report credit card fraud?
Answer: You dial the telephone number on the back of your credit card and speak to the fraud department.