India, soon to be one of the world’s leading cashless economies, is battling an upsurge of cases related to credit card fraud.
During FY 2020, approximately 52,000 cases of fraudulent transactions using credit and debit cards were reported across India.
A total monetary value of Rs.228.44 crore was involved in approximately 52,000 cases that were reported till March 2020.
While rapid digitalization has made card usage readily accessible to the masses, first-time users, often not familiar with its existing security protocols, fall prey to credit card fraud in India.
The details of almost 1.3 million payment cards, mostly belonging to Indian consumers, were put up for sale last year.
Lack of awareness makes credit card users especially vulnerable to criminals, who often use phishing, scamming, cloning, and other techniques to collect their personal and financial information. Understanding what credit card fraud is, its types, and the ways to prevent the same can help customers protect their financial interests remarkably.
Different types of payment card frauds
Criminals employ multiple types of credit card fraud to dupe users. What is even more concerning is that they often readily update their tactics and methods as new technologies appear in the market. The two main categories include –
CNP fraud – CNP, or Card Not Present fraud, is mostly committed online after a cardholder’s financial details are stolen. Individuals falling prey to some form of a phishing attack can expect CNP scamming afterward due to shared card credentials.
Additionally, as a layer of protection, one can purchase a Wallet Care insurance cover, provided by Bajaj Finserv under their Pocket Insurance & Subscriptions, which cover any financial liability that might arise because of such fraudulent transactions.
Card-present fraud – Although less common, card-present frauds pose a similar threat as criminals collect victims ’ skimmed information to clone a card for later use. This credit card fraud is often carried out at POS terminals where customers are more likely to hand over their card for payment.
Understanding the types and examples of credit card fraud should help a careful customer recognize methods to prevent the same. Also, one can follow some healthy practices to eliminate the chances of card fraud or theft. Here’s a look.
Preventing credit card theft and fraud
Credit card fraud prevention requires only some simple steps and careful online as well as offline usage from every customer. Here are some of the tips that one can follow to stay safe.
Card information should be kept private
The threat of credit card fraud can be greatly eliminated by keeping card details private. Scammers often use tele-phishing and email phishing techniques to steal customer details. Not divulging any sensitive information on the phone or in the email will eliminate the chances of data theft. Insurance plans like identity assure cover can provide additional relief as the insured individual will stay covered financially against any malicious use of personal or financial information.
Note that not all websites are the same
Genuine and trustworthy websites will carry a security certificate, denoted by ‘https’ in its URL. Making a financial transaction from any other website subjects a user to the risk of data breach. It is thus of utmost importance that one uses genuine sites only for online purchases.
Emails can be dangerous
Phishing emails often carry links and malware that can plant Spywares in a victim’s computer. These can then record their keystrokes as well as various other details before transmitting this information back. While one can avail a cybersecurity cover to financially protect against such attacks, simply ignoring any unsolicited correspondence or suspicious links will keep them safe as well.
The absence of any exposure to plastic payment systems and a relaxed attitude are the primary reasons why credit card fraud is still present in India. Thankfully, Government initiatives revised regulations, and stepping-in of private organizations are likely to reduce the same sign in the coming years.
