4 Credit Card Scams That Could Drain Your Bank Account

There are many ways that fraudsters commit credit card fraud and in this article, we cover the Top 4 credit card scams that you need to be aware of:

1. Application Fraud

This can be an assumed identity fraud where an individual pretends to be someone that he is not. Or it can be a financial scam where an individual provides false financial details in order to acquire credit.

2. Lost or Stolen Credit Cards

With the advent of modern technology, even the credit card scams have gone high tech. Nowadays, tricksters produce fake credit cards and trick merchants. They also copy information from the magnetic band on the reverse of the credit card, or the information stored on the smart chip.

3. Postal Intercept Deception

This happens when a card is stolen from the postal service prior to it reaching its owner. Postal intercept fraud has become a less famous aspect of credit card fraud, especially in the EU.

This is primarily due to successful monitoring of those who work for the postal service. Also, the card issuers have also started to take various safeguards such as requiring personal identification confirmation at the point of credit card activation.

4. Site Cloning and False Merchant Sites

On the Internet these are fast becoming a common technique of credit card scams for many fraudsters with a proficient aptitude for hacking. They make people provide their credit card details without realizing they have been tricked.

Precautions To Be Taken To Avoid Credit Card Scams

The best way to avoid credit card scams is to be on the lookout for any fraudulent activity. Be alert whenever you are using your credit card. Whenever you give your card to the merchant, keep an eye on it. See what he is doing and take it back as soon as possible. Do not let it go out of sight for too long.

You must not give out your credit card number on the phone to someone you do not know. The trickster may call you up pretending to be from the card company or some other company you do business with. Still do not give your card details to him. Insist on calling back on the number you have of the company.

Do not respond to any email that requests you to distribute your credit card details. Be extra cautious of emails that ask you to click on a link and verify your financial information. They are mostly 'phishing' scams. If you want to check the site, do not click on the link. Instead type out the url on the address bar and check the authenticity of the site. Be careful not to provide credit card information on any unsecured website.

Some More Do's and Don'ts

Do not write down the PIN number on your credit card or even keep it in your wallet. Your wallet is equally prone to being stolen.

Do make sure that you keep your credit card receipts properly and do not keep them lying all around you.

Do be careful that others around you can not copy your credit card number.

Do not carry all your credit cards all at the same time. If your wallet gets stolen, then all the cards will be lost at one go. Ideally, it would be better if you carry your credit cards in any place other than your wallet.

Do not lend your credit card to any one.

Do scrutinize each item on your credit card bill to ensure that you have not been overcharged.

Do not sign a blank credit card receipt. If at any time, you feel victimized, you must promptly let your issuer know.

As long as there are credit cards there will be credit card scams but common sense and vigilance coupled with ever developing scam detection technology should make credit card fraud rather negligible.