Irrespective of low or zero liabilities on a credit card, fraud or identity theft can provoke trouble for the patrons and the bank. The bank’s zero-liability policy authorizes credit card users to escape the financial repercussions only if they report the fraud within 60 days. Nevertheless, they are required to undergo the painstaking process of locating the theft, then notifying the bank regarding the fraud. After this, a user will get a replacement card, pay the fee, and need to reset all auto-pay accounts.
Recent statistics exhibit that global credit card fraud losses reached $32.04 billion in 2021 and by 2027 these losses are expected to reach $38.5 billion. Given the substantial breach of privacy and finances, this incident makes a user struggle with stress and lessens his/her confidence in the bank’s services. Such incidents demand strict action instead of reactive damage control. The bank authorities must resolve the issue early by keeping their credit card users informed.
How can a user prevent credit card fraud?
One of the questions that keep bothering credit card users is- How to avoid credit card fraud? The answer is available in simple credit card usage etiquettes that are emphasized below:
Ensure to keep the login details protected:
Be it a friend or a family, do not share your credit card PINs, mobile application passwords, or internet banking passwords with anyone.
Determine skimming:
Skimming happens when a fraudster robs a customer’s credit card data during a legitimate transaction at a PoS device and utilizes that data to create a bogus card. Scammers can use this card to make online purchases where a physical card is not required. Whether at restaurants or fuel stations while using a credit card, it is paramount to maintain visual contact with your card when passing it to the operator. Undeniably, EVM chip cards have made strides in battling skimming, it’s still vital for customers to stay alert. If anything seems wrong with the card slot or the PoS device, make sure to notify the bank authorities.
Scrutinize before making a payment:
Many advertisements urge the users to ‘pay now’ to get a discount. Do not allow such deals to tempt you into making a payment before considering the pros and cons of the product or service along with the authenticity of the website.
Use various cards for autopay and day-to-day expenses:
It is advisable to have different credit cards for autopay subscriptions on websites, telephone bills, or electricity bills. Users can safeguard their credit card information from passing through multiple hands by keeping their cards within sight during transactions at restaurants, fuel stations, and so forth. While this practice doesn’t eradicate fraud, it does alleviate the risk of late payment charges in the event of card theft until a replacement is received.
Never pay upfront:
Scammers send random emails to credit card users requesting them to pay taxes or fees to amass a large sum of prize money, inheritance, or overseas acquisition. Do not reimburse for such schemes upfront as these are usually online scams. You might not only lose your money but also your credit card information, causing more damage.
Stay aware of phishing and viruses:
Phishing is like tossing a bait to catch a fish, except it transpires in the realm of payments instead of under a water body. Fraudsters deceive customers into disclosing credit card numbers, expiry dates, and CVV numbers over emails, phone calls, text messages, and snail mail. They use regular logos, email templates, and even web pages that seem similar to the real ones. Users should be aware that financial establishments will never solicit such information over the phone, email, text, or mail.
Pay from mobile wallets:
Mobile wallets that make payments at stores are considered to be safe because they utilize tokenization technology. They save only the necessary amount of money in the wallet that you require for the transaction. This way, it is not possible for merchants to collect credit card details. Presently, phones generally consist of a fingerprint, a swipe, or a password-based authentication system. It deters anyone from using the phone to make payments.
If you want to be on the safer side, make sure to use YPay. It is a prepaid smart card solution that is designed for people to experience the concepts of financial literacy. This one card can perform many functions. Its efficiency enhances if a user uses this card with the YPay app. Jam-packed with a comprehensive assortment of exceptional features, this app allows users to smoothly send money, purchase an ideal insurance plan, invest in fixed deposit plans, and so forth.
Fix a payment limit:
It is quite feasible for credit card users to set payment limits for ATM withdrawals, PoS transactions, online/e-commerce payments, and contactless payments. One can modify the limit by using the mobile application anytime.
When it comes to your finances, practicing extra caution makes sense. In conclusion, staying vigilant and embracing proactive measures are crucial to prevent credit card fraud.
