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Sunday, April 24, 2011

Guarding Against Credit Card Fraud

Even though credit cards offer extraordinary advantages for the buyers, making it possible to ‘buy now and pay later,’ they might not come without any downsides. The same quality of simplicity that they provide, also tends to expose them to various kinds of frauds and high volume scams. Knowing the challenges facing your credit card is the initial step in the direction of safe-guarding yourself from a financial complication. A few basic checks can furthermore ensure that your credit card account is safe and sound.

Types of Credit Card Frauds

Since the advent of credit cards, the issuers have been introducing newer and more stringent security features every now and then and the fraudsters have not stayed behind. Therefore, it is a good idea keep a track of the current events and improvements in this area in order that you do not to fall in the trap of some newly fabricated trick. Listed below are the most typical ways in which, the crooks cheat the legitimate cardholders:

  • Misplaced or stolen cards are still the most significant source of credit card cons.
  • Phishing attacks are the second most frequent ways to give effect to a credit card scam. A genuine looking email requires update of some key data by the victimized cardholder and contains a counterfeit link that appears to be coming from a real bank, but belongs to a site of the fraudster. When the user enters the info on this website, it is illicitly gathered in the backend.
  • In some cases, the criminals might give a call to the cardholder, claiming to be coming from the issuing bank and request for some key facts for a professed ‘account update’.
  • Making use of the cardholder’s data, the scammers may make purchases on the existing card or even, create a new account in the holder’s name.
  • Skimming is a comparatively new type of credit card fraud, in which the merchant’s representatives at the billing counters covertly copy the card data using camera mobile phones, photocopiers, etc.
  • BIN attack is a method, where random credit card numbers are generated using softwares and later, tested for validity.
  • Taking advantage of some legit mail redirecting services, fraudsters redirect information-sensitive emails or snail mails of the victim to their own addresses.
Read the detailed post here: http://goo.gl/rcUFzX


Avoiding Credit Card Frauds

The security-based technologies used by the issuers will probably continue evolving with time in the wake of newer risks, but they always attempt to develop more and more user-friendly solutions. A little bit cognizance and adoption of some simple safety guidelines can decrease the risks to your credit card greatly:

  • Do not defer reporting lost credit cards.
  • Maintain your credit card info – card number, expiry date and CVV number – with confidentiality. Also, never disclose the login credentials of your online account to anyone.
  • Do not reveal any confidential information in answer to a mailer, sms or call. No authentic issuer ever compiles information in this way. This also refers to your personally identifiable information, which is used for your identification by your bank.
  • Sign your card instantly on receipt.
  • Be mindful at the billing counters and keep a close eye on the person dealing with your card. Take your credit card back immediately after swiping.
  • Always scrutinize the amount charged on your card, as stated on the sales slip.
  • Activate your bank’s transaction alert services, such that you get information the moment a purchase is completed using your card.
  • Take note of all your purchases done in a billing cycle and check it against the bills you get.
  • Do not deal online over public computers, including your office computer.
  • During the course of an online purchase, verify that the website is legitimate and the connection is secure (the address should begin with https://).
  • Look at the security certificate for SSL encryption of the online payment gateway before submitting your credit card information.
  • Sign up for for any optional security services available at your bank.

Read the detailed post here: http://goo.gl/OlNgrn


Eurion Constellation is a research and consulting firm serving businesses in U.S., Europe and India. The research services have a global reach with focus on industry / market / economic research, financial analysis, equity research, company valuations and report writing. The consulting wing in India focuses on the startup and SME sectors. Please feel free to get in touch for any business requirements. Visit http://www.eurionconstellation.com

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