Credit Card Fraud, Its Warning Signs, and How to Avoid It

There are many potential ways one can be a victim. Below are some of the red flags on credit card fraud that experts have enumerated.

If the credit card holder keeps track of how much their monthly balance is, then they should check for any significant increase in spending. This should not be taken lightly, so if they are sure that they did not go above their monthly expenses quota then they should go through their credit card statement. It is advised that the holder not pay the balance immediately, but to report the unauthorized transaction to the bank within the allowed number of days.

Consumers should ensure that the merchants they transact with are trustworthy and reputable. If a seller seems sketchy, the consumer should continue to monitor his or her credit card statements and credit score. To avoid fraud better, consumers should call their credit card company and ask for a placement card with a new number.

Checking the credit score regularly can help see if there’s any unusual charge. Having a higher balance on the card or loans taken from the card can affect credit score.

Usually these emails come with warnings that the card has been hacked and that the owner is required to change the password. The owner should not entertain these emails or click any link included in it. There are also emails that try to trick users to enter their personal information such as their bank accounts, credit cards, and the like. If the user happens to accidentally click any link or provide their info, they should check their credit score and credit card statements for any unauthorized transactions and report it to the bank.

The following are ways that the card can be in risk:

• First is skimming. Skimming refers to a crime when the cardholder’s stored information is stolen during transactions. Thieves can then produce fake credit cards with the stolen details. From then on, they can make purchases using the account. Skimming occurs when the merchant swipes the card twice using the payment terminal and once using a skimming device to collect data from the card. Some thieves even sell credit information on the internet.

• Fraudsters can also commit an identity theft crime once they get access to the cardholder’s personal information. If this happens, the owner should report the card as lost or stolen to the bank and get a new one.

• Fraud can also happen when the card is lost or stolen. If this happens, it’s best to report and block the card immediately to prevent any damage.

• Cards can also be intercepted while being delivered to the owner.

• If the account number and its expiry date are known, the perpetrator can use these information to make transactions through mail, phone, or the internet since these do not require the physical card unless requested for the card verification.

• Phishing websites are deceitful. Phishing criminals may also send a legit-looking email from the bank or credit card company. This crime can also be done through phone text messages, fake banner ads, message boards, mailing lists, fake job search sites and job offers, fake browser toolbars, and chatrooms.

When outside making purchases, the owner should not let their credit card out of their sight. It is advised that the owner go with the card when it’s being swiped to keep a close look.

Doing so will be a form of maintenance to keep track of all the expenses made, and this will let the owner check if there are some transactions not accredited to the owner.

As much at is it tempting to use birthdays as personal identification number (PIN), credit card owners should settle for something that is harder to guess or to be identified by others. Those who have multiple cards are encouraged not to use the same PIN for all credit cards. It’s helpful to memorize the PIN as well.

Frauds can happen anywhere even where someone least expects it—even overseas.

Call the credit card issuer if they did not come within the expected schedule. Owners should make sure that the mailbox is also secure and limit the access to themselves and the postal carrier.

These receipts should be shredded to very small pieces before discarding. However, the owner should keep billing statements in a safe place.

As much as possible, owners should make sure that the website has a “HTTPS” at its link. HTTPS secured websites are safe to browse.

Even if they introduced themselves as telemarketers or someone from the bank, owners should not trust anyone with the card number. Owners should make sure they know who they are speaking with or they are the initiator of the conversation.