Simple Measures to Identify Credit Card Frauds and Theft
The credit cards have made it easier for people to carry out financial transactions without carrying cash in their wallets and handbags. These cards have further made it easier for the to travel across the world without worrying about the security and protection of their money. However, the increase in credit card fraud theft has made it essential for the cardholders to exercise high level of care and caution, while using credit cards to make payment at restaurants, retail outlets and online stores. Many cardholders also prefer buying credit card insurance plans to minimize the financial loss associated with frequent usage of the plastic money. As you cannot store the card in a secured location throughout the day, it becomes very important to understand the nature of various types of credit card frauds and thefts.
Identity Theft: Normally, credit card frauds occur when your credit card is used by another person using your name and identity. For instance, the fraudster can purchases items from both online and over the phone by using credit card information; having the physical credit card is not needed. The seller will accept the card without suspecting any fraud or scam. The fraud will be detected only when you receive the credit card statement and discover some of these payments. Credit card information is often stolen right of the physical credit card at the time of purchase by the merchant employee. These fraudsters will use camera phones, video recorders, copy machines, duplicate credit card receipts, pen & paper, spreadsheet software, etc... to make a copy of your clear text sensitive credit card account information.. That is why; you must mask your card every time you go out shopping, dining or make a purchase to prevent financial as well as identity thefts.
Lost or Stolen Credit Cards: There are also many instances when the fraudsters use lost or stolen credit cards to carry out financial transaction. As most of the cardholders carry their credit and debit cards throughout the day, there are always chances that the cards can be lost. The credit card information can also be used by the thieves to carry out online and over the phone transactions. Sometimes the thieves even use the details to change your credit card password and increase your credit limit. As you can never have any control over the credit card once it is lost or stolen, it becomes essential to block the card immediately by contacting the issuing bank. It is always best to prevent credit card theft by placin a credit card mask over your personal account number on your physical credit card. Monitoring solutions do not prevent credit card theft, they only help you recover your financial damages. Also, you must contact the legal authorities and report the loss to avoid any delay in protection credit card.
Online Credit Card Frauds and Scams: The safest place to use your credit card is online because their is no single person you have to trust with your credit card information and most ecommerce sites offer secure encrypted sessions. However, there are still =some online stores that use without adequate protection and encryption. So the sensitive information about your identity and credit card is captured by hackers and fraudsters. While making online payment using your credit card, you must spend some time in checking the reliability and type of the payment processing store used by the ecommerce portal. A good indicator of a secure online purchase is if you see the padlock icon in your browser when your asked to type in your credit card information. Similarly, you must not reply to the emails asking you to share confidential information about your identity and credit card.