Credit card fraud in India

Know more about credit card fraud and its impact. Check out the ways to prevent financial loss due to loss of credit cards.
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Credit card fraud in India
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3 mins
20-April-2023

What is credit card fraud?

Credit card fraud refers to a scammer using your credit card number and PIN to commit financial fraud. The transactions happen without the knowledge of the cardholder.

When an individual uses someone else’s credit card information illegally or for uninformed personal spending, it is classified as credit card fraud. Credit card scams fall under identity theft and have become increasingly common nowadays. Scammers use your card details to perform unethical activities and initiate transactions from your account without your knowledge. Such events have led to the need for credit card security.

By securing your card and its related information, you can prevent yourself from falling into the trap of severe financial losses. People must opt for credit card security options that are readily available and accessible to ensure the safety of their transactions and financial statements.

Types of credit card fraud

Fraudsters use various techniques to steal credit card information and misuse it for their gain. Here are some of the most common types of credit card fraud:

  • Skimming: Fraudsters can use a skimming device to steal credit card information during transactions.
  • Phishing: Scammers can send fraudulent emails or texts that look like legitimate requests for personal information to gain access to your credit card details.
  • Chargeback fraud: Fraudsters can file a false chargeback claim for a legitimate purchase with the intention of keeping the product and receiving a refund.
  • Counterfeit cards: Criminals create counterfeit cards using stolen credit card data and use them to make purchases.
  • Online fraud: Hackers can send fraudulent emails with malicious links or intercept sensitive data during online transactions.

What is the process of credit card fraud detection?

Credit card fraud detection is the process of identifying and preventing unauthorised activity on credit cards. It involves various methods such as monitoring transactions and using advanced analytical techniques to detect suspicious behavior.

By detecting fraud early, banks can prevent financial losses for customers and themselves. Consumers can also help in credit card fraud detection by staying alert, keeping their credit cards secure and reporting any unusual transactions immediately. A proactive approach to credit card fraud detection and prevention can help minimise the risk of financial loss and keep credit card information secure.

How does one steal credit card information?

There are multiple ways through which one can steal your credit card information:

  • Skimming: Scammers place a card skimmer, which is a device that is kept on the credit card swiping machine. This device will take in your credit card information when your card is swiped for an actual purchase.

  • Dumpster diving: When you discard your bills or documents with your full credit card number on them, thieves can retrieve these details and commit fraud.

  • Hacking: Thieves can hack companies with whom you have had transactions or firms that perform credit card processing activities. They will then engage in data breaching.

  • Phishing: This includes persuading consumers to provide their sensitive data by tricking them to click on invalid links. Phishing is a form of social engineering in which the perpetrator obtains sensitive information. This includes account credentials, credit card information, and passwords. Emails and text messages originating from unreliable sources constitute phishing.

What is credit card security and its significance?

It is of utmost importance to secure your account from any unwanted threat of identity theft. You must check your account statement at regular intervals to check for any irregularities. Contact your bank if any discrepancy is traceable and take the required actions.

By securing your credit card, you can control the transactions taking place through your card. You can also get your cards blocked if you receive any notification related to an alarming fraud. If your card falls into the wrong hands, you can prevent yourself from the loss that may follow.

What are some of the ways to prevent credit card fraud?

  • You can prevent credit card fraud in the following ways:
  • Destroy any bill or document that has your credit card information before discarding it.
  • Do not give out your credit card formation when someone calls or emails you.
  • Always keep your credit cards safely with you.
  • If your card gets stolen or lost, report it right away and get it cancelled.
  • Be careful while using your card for online transactions.

Moreover, you can buy a credit card fraud to protect yourself against financial losses in case of fraud. You can choose the CPP Wallet Care plan available on the Bajaj Finance Insurance Mall. This plan provides the benefit of single-call blocking. This allows the cardholder to call a toll-free number and get their credit cards blocked instantly. They need not call different banks to block their cards.

Credit card frauds have become extremely common and one must ensure that they safeguard themselves against such fraud.

Frequently asked questions on credit card fraud

What is an unauthorised credit card charge?

When your credit card is used for a transaction by someone else without your knowledge, it is known as an unauthorised charge. This can happen when you lose your card or when your card or card information gets stolen.

What is the meaning of a counterfeit credit card?

A counterfeit credit refers to a fake card that has actual credit card information on it. The card information will belong to the victim and it will have encoded magnetic strips and the logo of the credit card issuer.

What is the credit card protection under the CPP Wallet Care plan?

In case of wallet loss, you can report the loss of your payment cards at 1800-419-4000 (toll-free number) with the CPP Wallet Care plan. You can get your payment cards blocked with just one phone call with this credit card protection plan.

What does the Wallet Care membership cover?

Here’s a look at the extensive benefits that you get in this wallet care card protection plan:
1. Blocking all cards with just one phone call
2. Complimentary fraud protection, which covers you from any card-based fraud on account of skimming, theft/loss, online use, counterfeiting, PIN-based fraud, and phishing
3. Emergency cash and travel assistance
4. Replacing lost PAN card
5. IMEI registering and SIM blocking for lost phone

How is credit card fraud detected?

When a credit card holder, observes any unusual activity in their cards, they can contact to the card issuing bank or entity. There are multiple tools used by them which can help in tracing these unauthorised transactions. The cardholder must keep a thorough check of the bank transactions to avoid financial loss due to any such illegal fraud.

Can credit card fraud be traced?

Yes, there are multiple tools which can help in tracing credit card fraud. If you promptly report a credit card fraud, the bank or card issuer will initiate an investigation. There is a system in place at banks for investigating credit card fraud, which includes some standard procedures.

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Disclaimer

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