My Money - redit card fraud

Credit Card Fraud

HOW TO SPOT, PREVENT AND REPORT IT

NEERAJ GUPTA, CEO, POLICYBAZAAR.AE

Credit cards are central to the financial lives of nearly one-third or 63% of the UAE residents. In a survey conducted by Visa, Dubai Police, and Dubai Economy, almost four in 10 UAE consumers have experienced online fraud attempts in the past year, trust and usage of digital payments both in-store and online.

People hold credit cards and use them to shop online, pay utility bills, and even transfer their house rent without giving a second thought. This inclination towards the usage of credit cards has rather gained more momentum during the COVID-19 pandemic, as credit cards play a vital role as both a source of credit in emergencies and as a mode for cashless payment method. Consumers still adore credit cards to facilitate smooth consumption and earn offers and rewards like discounts on movie tickets, shopping benefits like cashback offers or points redemption, and on air miles, etc.

While credit cards have become an important payment tool these days, credit card fraud too has become a concern. UAE Residents need to be aware of how to spot and prevent credit card scams, as knowing this will help them stay safe and save their money.

How to spot credit card fraud?

Credit card data breach- Unfortunately credit card data breach is a very common problem worldwide. Hackers are able to steal data from merchant sites, including credit card numbers, expiry dates, and CVV.

Phishing – Credit card users may receive emails and messages that look highly authentic from banks. These messages will ask you to click on a link. You may be asked for your card details here. Strictly avoid such messages or emails to save yourself getting into this trap.

Voice phishing- When live or automated callers direct you to call your bank or credit card issuer under the pretext of clearing up a problem and

asking for your personal or account information, strictly avoid such calls.

Keystroke Logging – With this, fraudsters install malicious software either on your computer or mobile phone. When you use your device to pay for something online, a process called keystroke logging happens. With the help of that malicious software, fraudsters identify the keys pressed on the device and track your card number and PIN.

The preventive measures that can be practiced are:

• Treat card as cash and never leave it unattended, especially when travelling - carry only the cards that are needed.

• Do not share card details with strangers.

• Record card numbers, expiration dates and customer care numbers. Keeping this record in a safe place and separate from the cards. Use it if you need to report your lost or stolen cards

• Set up a transaction alert on the phone so that you are immediately notified of every transaction allowing you to continually monitor and track the payment transactions.

• Never put personal identification number

PIN on the card in your wallet or store them on your mobile

• Do not forget to collect your card immediately after use at an ATM or merchant

• Do not provide any financial/personal/ card related information to an unknown internet site or respond to any email seeking such information from you.

• Do not ignore any SMS alerts or calls from the

Bank regarding your transactions or balance in your account.

Immediately call the bank in case you notice any discrepancies.

• Regularly changing your security passwords and adding additional security features such as a ‘security question’ should be considered.

• Cultivate the habit of checking your monthly bank statement on a regular basis, so that it is possible for you to notify the bank if you see any unfamiliar transactions.

• When shopping on online shopping sites or through your mobile device, check to be sure the - Never respond to/make remittances/participate in schemes or offers from unknown entities.

Don’t click or forward links in an email, instant message, or chat from unknown senders or if you suspect the authenticity of the message.

• Immediately Report it!

This step is also very crucial from a legal standpoint.

• If you happen to be a victim of credit card fraud, immediately notify your bank. The same needs to be initiated if you have lost your credit card.

Once the bank is noti fied, they would im mediately block your card thus, prevent any further transactions on the same.