How to Initiate Fraud Prevention of Your Credit Cards?

Are you one of the credit card users? If yes, you need to protect yourself from fraudsters. Maintaining financial safety is very important to avoid the theft of cards. The increased dependency on plastic money and credit card fraud can be damaging. Every individual who frequently uses credit cards in their daily activities must be aware of the possible perils of keeping their money secured.

The modern-day frauds vary from account takeover, card theft, and Mo frauds to counterfeiting. The finance industry has employed several measures to give customers ultimate protection against credit card scams. The customers are also responsible for taking necessary financial strategies to avoid deception.

Look at some practical ways consumers can practice credit card deceit prevention.

Monitor Your Transactions Regularly

Whenever you spend through your credit cards, the respective bank will let you monitor all your transactions via email, SMS, and online banking platforms. If anyone deceitfully uses your cards, it will immediately send you alerts so that you can request the bank to block your card and do the needful.

Verify Blank Receipts Before Signing

Whenever you sign the credit card bill, check the amount in the receipt thoroughly so that no one can do any scam with it later. In the blank spaces, put zero or scratches, and then put your signature.

Shred the Billing Statement Before Throwing it into the Bin

Since the paper statements of your credit card mention the complete card number, you should ensure that no one can have the trace after you throw it out in the bin. Therefore, always tear the paper document before disposing of it. Whether your card has expired or been canceled, you need to cut it into pieces.

Thoroughly Check the Online Transactions

To protect yourself from credit card phishing, you have to check the authenticity of the online platforms you use for purchases through credit cards. Never click on any unknown email links to prevent disclosing your personal information.

You can be assured of the legitimacy of your used website if there are no other websites present with a similar name. The website’s security can also be examined by noticing the address bar, which starts with HTTPS. When you take enough caution, it will go a long way to help you refrain from fraud.

Create Strong Passwords

in this modern age, your credit card numbers are digitally saved so you can easily access them when necessary. A rule of thumb for creating a strong password is using capitalized, and small letters and numbers to easily remember the password and secure the card from cracking the code. It is advisable to jot down the characters in your diary for further reference.

Capture Card Verification Value (CVV) Codes

The CVV is a three-four-digit code embossed on the back of credit cards. The value should not be kept in the merchant’s database for any financial operation. When using card-not-present (CNP) transactions (online, email, or telephonic orders), it is important to complete the verification from the customer’s end first.

If the CVV codes do not match, it is crucial to allow the payment gateway to decline the transaction. This won’t avert online credit card fraud, but you will be able to reduce the hazard of having chargebacks.

Be Very Careful of Phishing and Viruses

Phishing is like some sort of enticement to get a hold of a fish. But it happens in the payment domain and not in water. Online impostors fool people into telling credit card details like CVV numbers, and expiry dates over text messages, phone calls, or even through snail mail. They use identical logos, email templates, and even similar web pages, making it difficult to recognize the original platforms. It is important to know that genuine financial institutions never ask for such information through any preferred modes.

Never Pay Upfront

Online scams send random emails asking credit card users to pay fees or taxes to collect a large amount of prize money, overseas investment, or inheritance. Don’t make payment for these structures before, as these are nothing but online scams. Doing so will not only let you lose money, but you will also lose credit card details for further fraud.

Create Blacklists

Blacklists or scam detection include all order particulars such as credit card info, email addresses, customer names, physical addresses, and, in some cases, nations that businesses have recognized as risky or fraudulent. It is crucial to monitor the orders closely coming from certain countries as they are considered high risk.

Some of the states like Pakistan, Egypt, Nigeria, Lithuania, Bulgaria, etc. It is suggested to have bigger constraints by notifying the individual for review and only process after complete verification of the identities.

Identify Skimming

Skimming happens when a thief steals all the credit card details from a customer using a legitimate transaction at a PoS device. Online fraudsters make use of these information to design counterfeit cards. With these cards, they can do online purchases wherever there is a need for a physical card.

Thus, it is advised not to let the card out of sight while giving it to other fuel stations or restaurant operators. Using credit cards with EVM chips effectively alleviates the skimming problems. But the users must alert the banking authorities if they notice anything unusual in the card slot or the PoS device.

Try Paying Through Mobile Wallets

Payments made through mobile wallets at the stores are safe as mobile payments make use of tokenization technology. They save the required amount of money in the wallet required for the transaction.

This ensures that the merchant never collects credit card details. The smartphones also have fingerprint, password-protected authentication systems, or swipe mechanisms. This restricts anyone from using the phone to complete payments.

Set a Limit for the Payment

All credit card service providers offer the facility to set payment limits for PoS transactions, online or offline payments, contactless payments, etc. There is a default spending limit to the maximum amount available on the card. Changing these settings to the minimum amount you may need for daily transactions is important. If needed, you can change the limit only from the smartphone anytime, anywhere.

Make sure to Use Different Cards for Autopay and Daily Spending

Having a separate card set for all sorts of autopay subscriptions on website, electricity bills, utility bills, etc., is crucial. You can save this card from being processed by multiple operators at retail stores, restaurants, or even at fuel stations. This will not stop all fraudulent activities, but help avoid late payment charges in case of a card theft until you get a new one from your credit card service provider.

In Summation

Considering the ever-growing number of fraud cases, it is wise to use a contactless credit card so that you don’t have to swipe it through the machine reader. When customers have a basic understanding of protecting their plastic cards, no one will leak sensitive data from their cards. Whenever you receive a new card, make sure to sign it at the back to claim your authorization. Check your credit card in a while to confirm its safety.

Please feel free to share your thoughts or comments regarding the post below in the comment section.

About tomclark

Check Also

improve credit

Improve Credit and Reach Your Financial Goals

Introduction:  A good credit score is essential for achieving financial success and stability. It opens …

Leave a Reply

Your email address will not be published. Required fields are marked *