Around 52,000 cases of fraudulent use of credit cards, debit cards and internet banking were reported in the financial year of 2020 in India. Such fraudulent transactions accounted for almost Rs.228 crore, making cardholders and internet banking customers question the safety of digital transactions.
Nonetheless, with a little caution and applying safe transaction practices, cardholders can lower their risk of succumbing to credit card frauds or any other form of online threats.
Ways to prevent credit card frauds
Typically, credit card fraud in India is described as the unauthorised and illegal use of another person’s card details to obtain funds or purchase goods.
Between 1st October and 31st, December 2019, more than 6117 cases of credit card frauds (accounting for Rs.19.7 crore) were reported in India. That being said, the following tips below prove effective in lowering the risk of credit card frauds.
Don’t share credit card details
Individuals must refrain from sharing credit card details like CVV number, PIN, etc. at all times. In fact, they should never disclose card details to any individual who claims to be an executive officer of the card-issuing institution as well. As a mean of credit card fraud prevention, users must cross-check with their credit card issuer in person before divulging any valuable information.
Be aware of phishing scams
Usual credit card fraud types include phishing, wherein the scammers trick users to share their details voluntarily. Typically, such a scam refers to phoney SMS, phone calls, emails or even letters. The sender pretends to be a financial institution or a business, often boasting about a phoney scheme to secure personal and card details from an individual. Also, while shopping online, individuals must make purchases through reliable and secured websites at all times.
Store credit card safely
Individuals must make sure to keep their credit cards safe, especially during transit. Doing so, they will be able to minimise the risk of misplacing or getting it pickpocketed. To cover for the financial liabilities resulting from a stolen credit card, individuals may consider availing a comprehensive card protection plan.
For instance, Pocket Insurance & Subscriptions like Wallet Care extended by Bajaj Finserv help credit card users to cover for financial obligations arising due to credit card fraud in India. Such a card protection plan comes with instant card and sim blocking facilities that help lower the risk of fraudulent transactions significantly. Also, policyholders are entitled to avail complimentary card protection cover to account for fraudulent charges effectively.
Watch out for credit card skimmers
Skimming is one of the most popular examples of credit card frauds that individuals should be aware of at all times. Typically, such a scam is carried out with the help of credit card skimming devices. Such devices are placed in the ATM to capture and store card details. Resultantly, individuals should be extra cautious when using their credit card at an ATM or a gas station; as a safety blanket, card users may avail a fraudulent charges cover. Such an insurance policy helps to protect card users against unauthorised expenses that might arise from fraudulent usage.
Other than these, card users should review their billing statement carefully to identify any unauthorised financial transactions right away. Since credit card fraud is a part of identity theft, cardholders should consider availing a protection plan like identity assurance insurance cover to account for legal and financial obligations arising due to identity theft more effectively.
Hence, to protect oneself from credit card frauds, card users should become aware of the different types of online scams and also learn how to make safe transactions at all times. Furthermore, they should get a comprehensive card protection plan to account for unwarranted expenses.