Top 10 Ways to Stay Safe from Credit Card Frauds.

. 6 min read
Top 10 Ways to Stay Safe from Credit Card Frauds.

What Should You Do To Ensure Secure Online Transaction?

What is Credit Card?

  1. A credit card is a rectangular payment card issued by financial institutions to transfer funds, make purchases, or cash advances.
  2. The issuing authority decides the fund limit according to your credit history and score.
  3. Please note that a credit card holder is also required to pay back the amount spent using the card to the card provider within some time.
  4. Many people confuse the functions of a debit card and a credit card.
  5. In the case of debit cards, money is deducted from your bank account when you swipe a debit card.
  6. On the other hand, when you swipe a credit card, the required money is withdrawn from the pre-approved limit set by the bank.
  7. Nothing is deducted from your bank account.
  8. Unfortunately, credit cards are at a higher risk of theft, high-tech hacking, skimming, cloning, and triangulation.
  9. However, your alertness and proactiveness can safeguard your hard-earned money from any scam or fraudulent acts.

How To Use Credit Card Safely?

Follow the tips below to ensure a safe credit card transaction.

Keep Checking Your Mobile Alerts

  • Subscribing to the e-mail or mobile alert facility is a wise decision to secure your credit card transactions.
  • It will help you in tracking all the transactions made by your credit card.
  • Moreover, make sure you read the complete message thoroughly and keep a tab on any invalid transactions.
  • The moment you identify any suspicious transaction, connect with your service provider immediately, and report the transaction.

Review Monthly Statements

  1. It is equally essential to keep a check on your credit card’s monthly statements.
  2. In case you come across any unusual transactions, you should alert the issuing authority immediately.
  3. You can report any credit card issuer within 30 to 60 days of receiving the statement.
  4. Do you find difficulties in comparing your expenses?
  5. If yes, you should note down all your credit card transactions on a page or save their bills or receipts.
  6. You can compare these with your credit card statement to identify the genuine payments.
Beware of Credit Card frauds

Be Alert While Swiping Credit Card

  • First of all, make sure you do not swipe your credit card at local shops.
  • Secondly, exercise caution when you swipe a credit card at any Point of Sale (POS) terminal as well.
  • Keep an eye on the card and collect it back the moment you receive the message.
  • Moreover, refrain from signing any blank paper or receipt.
  • In case you have to, cross the blank space above the amount section before you sign it.

Stay Safe From Online Frauds

  1. We all love to shop online.
  2. But rarely do we know the consequences of unsafe credit card transactions made here.
  3. Here are some tips to save you from online frauds:
  • First of all, you should have an updated anti-virus on your laptop, phones, or computer all the time.
  • The URL address of a genuine website will always start with ‘HTTPS.’ The ‘s’ in ‘HTTPS’ stands for security.
  • Moreover, a closed padlock sign on the left side of the address bar signifies that the website is secured.
  • Before initiating any credit card payment, check for text like VeriSign, Verified by MasterCard, and so on. These are the safe digital certificates authenticating the websites.
  • Lastly, make sure you shop from a reputed website that is genuine and not any fraudulent imposter.

Always Use Secure Network and Verify the Source

  1. You might risk your security and privacy by clicking on random links to reach your online credit card or bank account.
  2. Experts recommend always using the original credit card issuer or bank website for this purpose.
  3. Similarly, you should also avoid any financial transaction on public Wi-Fi connections or public computers.
  4. But what if you do not have an option but to use a shared computer?
  5. In this case, you should always use a virtual keypad for entering credit card or net banking passwords.
  6. This method ensures top-notch safety even if the computer does not have an anti-virus.

Notify for Address Change

  • Have you recently shifted to a new place?
  • If yes, make sure you inform your credit card provider about it.
  • Apart from this, a customer should bring to notice any change in the phone number or e-mail address to the credit card provider.

Never share your Credit Card Details

  1. You should never share your credit card details like PIN, password, and CVV code with anyone, including the help desk executives.
  2. In case you need to share the details with them, you should always go for the key-in your IPIN option.
  3. Spelling out the details can lead to leakage of sensitive information to a  third party over the phone.

Always Opt for Chip Credit Cards

  • What is a Chip credit card?
  • It is a type of credit card that has a secured microchip embedded on it.
  • It is an encrypted chip that offers enhanced protection and security against scams and fraudulent transactions.
  • These cards provide better security than magnetic strip credit cards.
  • It also makes copying or changing data difficult for the hacker.
  • Overall, the chances of data misuse are quite minimal in chip cards.

Traveling Overseas? Inform your Credit Card Provider First

  1. Do you know that traveling overseas exposes your credit card to cloning and skimming?
  2. If you are swiping your credit card everywhere, then extracting sensitive information might not be a big deal for the hackers.
  3. Therefore, it is crucial to inform your credit card provider before you leave the country.
  4. They will track all your transactions and can provide you with assistance throughout your trip.

Always Go for Trustworthy Online Websites

  • Shopping becomes fun and safe when done from a trustworthy source.
  • Making online transactions at small vendors’ websites might compromise your credit card security.
  • Last but not least, make sure you cross-check every payment confirmation alert once you are done with your online financial transaction.

In Conclusion

  1. The credit card has come a long way since its introduction in the 1950s.
  2. However, hacking tactics have also advanced with time.
  3. Make sure you follow the above-given tips to enjoy safe credit card transactions.

You might also be interested in reading:

Things You Must Know About Your Credit-Card

What is CIBIL Score? Credit Score & Loan Fundamentals!

All about CoD, Pay Later, EMIs, Card Payments & more


Q- What to Do in Case of Loss or Misplaced Credit Card?

  • First of all, you should immediately inform your credit card provider.
  • They will block all the transactions on the lost credit card number.

Q- Can You Increase Credit Limit?

  1. Yes, it is possible to increase your credit limit.
  2. All you need to do is place a request with your card provider.
  3. The provider will first examine your income status and current credit status before increasing the credit limit.

Q- How to Get a Credit Card?

Ans- Follow this 3-step process to get a credit card.

  • Contact a card issuing authority.
  • Fill in an application form and submit it along with relevant documents.
  • After a quick credit appraisal, the provider will issue you a credit card.

Q-What is the Cost of Owning a Credit Card?

  1. You have to pay a joining fee that can range from Rs. 100 to Rs. 1000.
  2. Apart from this, an annual fee is also required to be paid to the card provider.

Q-Why Should You Pay Through a Credit Card When You Have Cash in Hand?

  • Paying through a credit card leaves you with cash for emergencies.
  • Moreover, you also have ample time to repay the amount to the bank.

Q- What is a PIN?

  1. Personal Identification Number or PIN is a 16 digit number printed on the credit card.
  2. It is like a key that allows you to make payments online.
  3. Make sure you do not share it with anyone and store it carefully in a safe place.

Q- What is a  CVV Number?

  • It is a three-digit number printed on the backside of a credit card.
  • It plays a crucial role in verifying all your online transactions.
  • Make sure you do not share your CVV number with anyone.

Q- Who is Eligible for a Credit Card?

Ans- Here are some  criteria that one needs to meet to get a credit card:

  1. The minimum age to get a credit card is 18 years.
  2. He should have an acknowledged ITR or salary proof.
  3. He should have a valid residential address.
  4. A savings account in any of the banks is a must.
  5. He should qualify for the income requirements of the credit card provider.

Q- How Can You Pay Credit Card Bills?

Ans- You can pay credit card bills with net banking, NEFT/RTGS, cheque/draft, or cash.

Q- What Are the Different Types of Credit Cards?

Ans- There are five types of credit cards:

· Standard Credit Cards.
· Specialised Credit Cards.
· General Credit Cards.
· Reward Points Credit Cards.
· Cash-back Credit Cards.