Credit card fraud may be exceedingly destructive, especially as people’s dependence on plastic money develops. Credit card theft occurs when a scammer uses your credit card number and PIN, or a stolen credit card, to withdraw funds from your account without your knowledge. As technology advanced to make life easier, so did fraudulent credit card techniques. People with a fraudulent mindset are always looking for ways to make use of your credit cards without your knowledge, irrespective of how safe your wallet actually is. This could be because you were careless with your credit card at one point. Before applying for a credit card, ensure that you understand how to keep your credit card safe at all times. Moreover, it is advisable to only apply for a credit card when you have a high Credit score.
RBI Guidelines
Apart from the fact that RBI or Reserve Bank of India has already released their guidelines to help people in avoiding credit card fraud in India. There are still many cases of credit card fraud occurring in today’s digital era. The RBI has taken a number of precautionary measures, including:
- Online purchases require two levels of authentication. The first stage occurs when you enter your credit card information and CVV (Credit Card Verification Value). The step-in-aid of the execution of a 3D Secure Code is the second level of Certification (Verified by VISA and Mastercard SecureCode).
- The introduction of EMV-enabled credit cards with a chip and PIN. The RBI has produced cards with embedded chips and PIN protection.
- The option to select/set an international usage limitation. According to RBI a user can allow or disable foreign transactions on his card according to his convenience.
- Data Security Standards for POS Terminals The RBI has established several POS security guidelines to ensure that whenever a user swipes his card to make a purchase, the POS system is accountable for handling the transaction’s complexity in the background.
- Every Credit Card transaction creates an SMS alert to the customer’s registered mobile number to tell the user about every transaction that is done using his card.
- IVR transactions require a one-time password (OTP). Interactive Voice Response transactions are such that you make over mobile phones by supplying your credit card number on an automated system to make a payment to the merchant.
However, the vast majority of credit card frauds are carried out on a global scale, which means that credit card information is stolen in India and subsequently utilised outside of India. The best part is that for overseas purchases, you only need a credit card number and a three-digit CVV number. In contrast to India, there is no multi-layer security verification. The RBI has no jurisdiction outside of India. The only comfort is that if the user demonstrates his innocence by demonstrating that credit card fraud occurred due to the bank’s or its employees’ ignorance, fault, or complicity in this circumstance, the bank will compensate the user for the damage sustained as a result of credit card fraud.
Preventive Measure for Credit Card Frauds
Below are some of the preventive actions that you should take in order to avoid credit card fraud:
Keep your credit card details private.
One of the most prevalent strategies used by credit card scammers is to masquerade as a customer care representative and gain personal information from the cardholder. Giving out your credit card or other personal information over the phone should be done with extreme caution. A bank or financial institution will never call and request this information from you. Only provide your credit card details on calls you’ve initiated to bank authorities or the helpline number on the back of your card
Credit Card Security.
The first option in inhibiting credit card fraud is to keep credit cards in a secure place that isn’t easily accessible to others. Keep your credit card in a small wallet to make it difficult for snatchers or pickpockets to obtain it. Remember to return the card as quickly as possible after each purchase because thieves can capture and store a digital image of the credit card using smartphone cameras. It’s also a good idea to check your credit card in your wallet every now and again, even if you haven’t used it in a while
Monitor online credit card transactions
Monitor your online card transactions and avoid leaving a paper trail of your credit card number. Banks provide SMS and email alerts, as well as Online Banking, to help you keep track of your credit card transactions. You can receive real-time alerts to track your credit card usage. Credit card billing statements often include the entire credit card number. When using a credit card, always be sure to destroy the statement before tossing it away. Expired or cancelled credit cards should be discarded as well.
Complain about a Stolen or Lost Card as soon as possible.
A lost or stolen card should be reported as soon as possible to the service provider. Remember, as a consumer, that the sooner you report a lost card, the sooner you can avoid credit card theft. Keep your credit card company’s customer service number in your phonebook to avoid delays in reporting the service provider in the event of credit card loss or theft. Only early disclosure can prevent credit card fraud in such cases.
Carefully Examine your billing statement.
Another key step in preventing credit card theft is to routinely examine your monthly payment statement. Charges that are not authorised are a symptom of credit card fraud. In such circumstances, the scale of the fraud is unimportant, because even tiny unauthorised charges should be reported to the credit card service provider straight away.
Apart from these above-listed measures, you can always make a CIBIL score login to regularly monitor your credit score and report. Because these frauds can have a negative impact on your overall credit score. Moreover, the only relief a user has in the event of credit card fraud is if he demonstrates his innocence by demonstrating that the credit card fraud occurred as a result of the bank’s or its employees’ ignorance, negligence, or collusion. In this case, the bank will compensate the user for the loss caused by credit card fraud.
