Credit cards are the greatest boon for any person who wants to spend money without actually having any money in their hands. If not used properly, credit cards can cause different issues sabotaging your credit score, especially with credit card scams.
There are numerous credit card scams that can make you fall victim to their whimsical tricks. Follow the simple steps given here to learn about the different types of credit card scams and protect yourself from becoming a victim of them.
How to Use Credit Cards Safely?
- Pay attention to the basics. Do not write the pin number on the back of the card.
- Do not disclose your credit card details like CVV and PIN number to any person online or offline.
- Turn on two-factor authentication which will require you to enter an OTP (one-time-password) to do any transaction.
- Shred your credit card statements and bills before discarding them.
- Check your statements and bills to ensure you are not billed extra or unnecessarily through the card.
Credit Card Scams
75% of credit card scams can be avoided if you pay attention to these basics. Apart from that, there are some unique scams you need to be aware of to protect yourself.
You might get a call from some unknown number describing all the details about your last purchase with an online shopping company. They will tell you everything starting from the name of the item you ordered to the exact quantity.
The person on the call will say that you are their one-millionth customer and you have won a new car or a trip to a foreign country. Unfortunately, many people are quick to believe such things and get extremely pleased with their sudden luck.
The call continues and the person on the other side tells you to cash in the prize or come and collect the gift from a faraway location. When the victim informs them it is not possible for them to do that, they immediately give an offer to cash in the money instead of the grand prize.
Most victims get flabbergasted at this state believing there is no better offer. They won something and they could collect the reward in cash if they didn’t want the object. The company then asks them for their bank details, account details, credit card details, and every other important piece of information.
The conversation takes place in a smooth and convincing manner, nobody even suspects why they are asking for the CVV and other details. Then the card is used very quickly to make huge transactions in other countries with a different timeline and maxed out in a single minute.
Protection tips: Never pick up unknown numbers and do not believe the sudden luck. Never disclose any details about your credit card or bank account number to the person on the phone. If you have genuinely won something, the company will inform you through an official mail with the company seal. In any case, they will not need your credit card details.
New Card Scam
A person calls you and gives you the last four digits of your credit card. They even give you details of the bank and your mother’s maiden name, etc. All of these details are collected through theft from your other documents or social media accounts.
They make you believe the call is genuinely from your bank and inform you about your current credit card expiration. They either send you a new card to use from now on or ask you to enter a certain internet page and give your credit card details to renew the card and extend its life for a few more years.
Most people get appalled when they hear their credit card won’t work anymore. They visit the website which duplicates the bank site and do whatever the scammer says. The website collects all your credit card details and maxes out its limit within a few seconds.
If you opt to get a new card through the mail, the person will ask you to give all the details through their portal again. Their aim is to get information from you regarding your credit card, CVV, and other personal details they don’t have yet.
They will tell you the procedure is to create another card for you with a similar number and details so that you don’t have to update the new card details into your monthly subscriptions. Never believe such scams and enter your credit card details on anonymous or suspicious websites.
Protection tips: All new cards will be sent to you via mail by your bank directly if the card expires. They will never ask you to give the details of the current card on a website or on the phone. Ignore such calls and requests completely.
Call the customer service desk of your bank to check if your credit card is blocked or going to expire if you are doubtful. Check the number of potential scammers on Nuwber. You can easily identify the authenticity of a person using this site and confirm whether they actually belong to the bank or any profession they mention.
Advanced Protection Tips:
- Always use an encryption app to mask the original credit card details when you use them online.
- Use appropriate mobile wallet apps to pay with a phone. It prevents you from getting your card lost.
- Do not use your credit card on unsafe websites without https extension. Purchase online only through reputable sites. Install a good antivirus in the system which will warn you if you are entering an unsafe website.
- Inform your bank if your credit card is lost immediately to block the card and prevent thieves from using the card.
- Take credit card insurance when you buy the card which will come in very handy in case you lose it or someone misuses it.
Conclusion
There are numerous stories about credit card scams on the internet. Read them and try to create awareness about how scammers target the victims. Follow the protection tips given in this article to keep your credit card safe.