How Do Credit Card Frauds Happen?

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As the nation rapidly moves towards cashless finances, credit card frauds continue to increase. During 2017-18, RBI registered around 2,059 cases of fraud involving an amount of over Rs. 1 Lakh.

To curb such incidents, the apex body has released circulars stating that financial institutions should refund the amount debited via unauthorized electronic transaction within 10 days of the complaint.

How do card frauds happen?

Fraudulent cases with credit cards happen when impostors gain unauthorized access to card information like CVV, card number, etc. It can result in identity theft and purchases without making any payment. Sharing card details with unknown individuals, diversion of emails to criminals, stolen or lost cards, etc. can lead to such incidents.

Every user must know the various types of frauds and ways to prevent them. Some of the card frauds are –

  1. Online fraud
  2. Cloning
  3. Phishing emails
  4. Identity theft
  5. Application fraud

Once fraudsters get crucial information, they may use it to make ATM withdrawals, conduct monetary transactions, open fake accounts, etc.

3 essential ways to identify a fraud

The best part is you can quickly detect credit card fraud if you practice the following financial habits.

1. Check monthly statements 

Credit cards come with monthly statements or bills which mention details of every transaction made using the card. You shall find merchant’s name, purchase amount, interest rates, taxes levied, date of payment, etc. Read your statements carefully every month. In case of any suspicious activity or unauthorised entry, immediately report to the concerned provider.

2. Review SMS alerts 

Subscribe for SMS alerts with your card provider so that you receive a text message whenever your credit card is used.

3. Double check the credit report

The credit report contains all your previous payment details, existing debts, and more. Check your credit report once a month to identify any unauthorised entry or record.

How can you prevent chances of fraud?

  • Avoid sharing your card number or CVV with anyone.
  • Refrain from saving your credit cards’ details online.
  • Change your PIN and passwords of your account.
  • Avoid using your card details online when surfing over public Wi-Fi connections.
  • Always keep your mobile phone and computer’s software updated.
  • Ensure to transact on secure websites only.

Most importantly, opt for credit cards which come with high-end security features to prevent cybercrimes and fraudulent cases. One of the prominent financial institutions, Bajaj Finserv brings the powerful Bajaj Finserv RBL Bank SuperCard. It is equipped with two robust security features to keep you protected –

  • In-hand security
  • Zero-fraud liability cover

Besides, there are many other things you should know the SuperCard can do. You can apply for this payment card easily once you meet the simple eligibility criteria.

If you are an existing customer, Bajaj Finserv brings you tailor-made pre-approved offers on credit cards. Pre-approved offers ensure that the application process is simplified and less time-consuming. These offers are also available on other financial products, including business loans, home loans, personal loans, and more. Check your pre-approved offer with some essential details only.

First-time credit card users should responsibly use their cards and expend only the amount which they can afford. Keep an eye on any unexpected charges on the monthly statement and report to the concerned provider soon.

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