Credit Card Fraud: What You Need to Be Wary Of

In 2017, research and advisory firm Aite Group conducted a Consumer Trust and Security Perceptions survey where they tried to understand people’s attitudes towards data protection and fraud. This global survey stated that only 36% Singaporeans trusted online platforms with their credit card data.

Wondering where this mistrust stems from?

In the first 6 months of 2018 there were 2,308 data breaches in the US alone, putting nearly 2.6 billion records at risk. Add to this the fact that some of the best known retail stores in the world such as Saks Fifth Avenue, Under Armour, and Forever 21 have all had some form of a data breach that ended up compromising customers’ payment information, and you have a pretty good case for not trusting online or offline platforms with credit card data.

All that said, the convenience of paying with a credit card or via a mobile wallet cannot be denied. Which is why people still use credit cards to make payments and they store card information on shopping sites to speed up the checkout process.

So, how do you protect yourself from card fraud? One way is to know the common tricks that fraudsters use to glean your card information.

Here is a list of the most common credit card scams out there:

 

Scam 1: Interest Rate Reduction

Ever received a phone call or an email from a ‘bank representative’ saying that among all the credit cardholders the bank has, you (and you alone) have qualified for a new programme. They then go on to tell you that this programme will help you lower the interest rate on your card. Instead of 25% p.a., you only have to pay 15% p.a.! All you need to do is provide them with your credit card details so that they can process this new rate of interest.

Unfortunately, while you are singing praises to the powers that be for getting so lucky, your credit card is being used by these scammers.

Remember: Your bank will never ask you to disclose any personal information over the phone or via an email. If you are confused about whether the call or mail you have received is genuine, you can always visit the bank’s branch and speak to a representative there.

 

Scam 2: Potential Fraud

You’ve really got to applaud the ingenuity of a scammer who is looking to defraud you by telling you that there have been unauthorised transactions on your card. They then ask you for your credit card data to put a stop to these transactions.

In fact, these scammers may already have some information such as your name and probably your account number to convince you that they are indeed genuine.

Remember: While banks will call you or send you an SMS if your card is used for any suspicious transactions, they will never ask you for personal card information to block your card or check for fraud. If you receive such a call, the best thing would be to call your bank’s customer care hotline to check if your card has indeed been used for fraudulent transactions. You could also cross-check the card statements for this data.

 

Scam 3: Free Wi-fi

All of us want to save data on our phone, so free wi-fi is nothing short of a blessing.

But it could cost you. Especially if you connect to open hotspots or wi-fi networks in public places.

You see, scammers understand how important free wi-fi is to you, so they set up open hotspots. Once you connect to them, they can access almost any information you send or receive over this network. If you decide to log in to your online banking platform using this network, scammers can easily gain access to details such as your username and your password. If you decide to shop on an open platform, your credit card information is, once again, accessible to the scammer.

Some scammers are even able to access information in your browser history and decrypt encrypted data.

Remember: No matter how much you want to, do not connect to open public hotspots. Also, make sure that you use your home wi-fi for any activities that involve using your credit card. This includes online shopping and paying utility bills, among others.

 

Scam 4: Credit Card Skimming

Probably the most common credit card scam out there, credit card skimming involves a card reader that electronically reads your card. This data is then stored on the card reader and used by fraudsters to make unauthorised transactions.

Skimming most commonly occurs at places where your card is taken away from view for a while (like cafes, bars, restaurants, and other food and beverage outlets).

Remember: Always keep an eye on your card. Even if this means walking with your server to the place where your card is run through the card machine. Also, keep in mind that skimming machines are now portable thanks to advances in technology. At times, they may be worn as an ankle strap. So, don’t lose sight of your card.

 

Scam 5: Spyware

A lot of credit card fraud happens thanks to spyware. Spyware, like the name suggests, is a type of software that sends data from your computer to another without your knowledge. This includes your internet browsing habits as well as the keystrokes you use.

The problem with spyware is that you don’t really know your data has been breached until it is too late.

Remember: The best way to stay protected is to get a good antivirus and not provide personal information on unsecured websites.

 

Scam 6: “Attack of the Clones”

While Star Wars: Episode II – Attack of the Clones may (or may not) have its fans, fraudsters sure are fans of clone sites.

These are websites that look and read exactly like the original site, so much so you may think that it is safe to provide your personal information when asked to do so. But a careful look will show you that these are just copycat sites.

Remember: Always take a look at the website’s URL. You will be surprised to find sites that look exactly like Amazon but are actually www.amazoon.com or search engines named gooogle.com.

Also, if you receive an email that seems too good to be true, don’t forget to check the sender’s email ID to see if it has been sent from an official ID or not.

 

Scam 7: Some Good Old Conversation

Slick scammers can easily get personal information such as your bank account number or credit card details just by engaging you in conversation. They may claim to be financial gurus or industry experts to get you to give out information.

Remember: As a kid, you were told not to talk to strangers. It would be good to use an amended version of that rule as an adult. So, it’s okay to talk to strangers, just don’t give them personal information. Even if it means that you may miss out on a million dollar opportunity.

 

What Can You Do to Protect Yourself?

Yes, credit card fraud is scary, but there are steps you can take to protect yourself.

• Review your credit card statement regularly and look for any unusual transactions.

• Sign up for My Credit Monitor with the Credit Bureau. This is a subscription plan that notifies you if any changes are detected in any of your accounts. You can choose to subscribe for a 6-month plan for S$29.96 or a 12-month plan for S$48.15.

• Make sure that all your internet banking passwords and credit card PINs are different and complex. They shouldn’t be a combination of your birth date or the birth date of your family members since these are the easiest details to get hold of.

• Shred any correspondence that has your card details or any personal/financial information.

• If your card is lost or has been stolen, report it immediately.

• Even if you are convinced that the person over the phone is a bank representative, don’t provide any personal information over the phone. Always visit the bank and provide information in person, if necessary.

• Don’t leave phones, laptops, and tablets unlocked and always make sure that they are password-protected.

• Always use 2-factor authentication for your transactions.

Technological progress is evidence of the fact that human beings are constantly trying to better themselves. So, while banks, companies, and regulators work towards creating systems that effectively protect data, fraudsters will look for creative ways to breach these barriers. The best you can do is be aware of the different ways fraudsters try to trick you, so that you are (more often than not) one step ahead.

This article was written by BankBazaar.sg.

BankBazaar.sg is a leading online marketplace in Singapore that helps consumers compare and apply for financial products such as credit cards and personal loans.

(By BankBazaar.SG)

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