From everyday purchases to online shopping, credit cards have become an essential part of life. Credit cards have eliminated the need to carry cash around especially when travelling, but like any technology, there are some challenges and potential problems that have emerged from using credit card.
Credit card fraud has become one of the biggest type of financial fraud today. Unfortunately, most of this stems from careless use of credit cards. Below are some tips to help you prevent credit card fraud.
Storing credit cards safely
It might seem obvious but it is extremely important to store your credit card(s) in a safe place that is not accessible to others. From your maid to your babysitter, anyone with access to your card could potentially misuse your card if not safely stored.
Disposing of sensitive information
It is important to carefully deal with all bank correspondence. A lot of bank documents contain sensitive revealing information that can be potentially misused for fraudulent purpose in the hands of the wrong person. After usage, it is important to shred irrelevant documents with confidential details. It is important to also take immediate action if you think your credit card details have been compromised.
Carefully signing credit card related receipts
A lot of times, purchases require receipts to be signed at the end. It is important to verify the amount stated on the receipt and ensure that there are no blank spaces above so that the cashier does not potentially misuse the information for maleficent purposes.
Related: Do You Understand Your FICO Credit Score?
Not sharing credit information
Credit information is really sensitive, consideration the modern nature of the transaction, minimal details are required to make purchases. In the wrong hands, it can only be a matter of minutes before the information is misused by the wrong person for fraudulent purchases. It is extremely important to be wary about sharing sensitive card information. Attempts must be made to restrict the people aware of the details to extremely close spouses or partners.
It is also extremely important to never share these details over the phone and unsafe text message to another person. This can result in the information being leaked in case the other person device gets compromised.
Using credit card online only on safe websites
Only purchases are the major source of the credit card used today due to the convenience that is brought by them. Consumers use their cards for almost every single purchase online. These purchases are usually made from a number of different websites due to the wide variety of online stores and forms of purchase. In the midst of the purchases, it is important to verify certain important details to ensure that the transaction is safe in nature.
- The website has a certified SSL certificate showing that the site encrypts all financial transaction data directly to the payment gateway.
- Reviewing the site’s authenticity to avoid getting scammed.
- Shopping from trusted brands to ensure that there are effective security measures and financial data is dealt with ethically.
Just keeping into consideration these minor steps can ensure financial safety and go a long way in avoiding any online frauds.
Reporting lost cards promptly
In the case the card gets lost or stolen, it is extremely important that the details are reported to the authorities right away. This can help avoid any liability of the misuse of the card and in most cases, it will alert the officials to block the card so that It cannot be used any longer. This always helps avoid any potential negative uses of the card after it is stolen.
Having OTP Verification
One Time Pincode (OTP) verification is an effective way of keeping financial transactions safe. They ensure that every single transaction processed is effectively verified before it proceeds. This adds the mobile phone as a source of verification to ensure that there is an effective verification method on the transaction. It also adds an additional security layer which can prove to be extremely beneficial for security purposes.
Turning on purchase updates
Purchase updates are a rapid way of making you aware of every single transaction and action carried out by the card on both the phone and email. They are free with most banks and have a minimal cost with others. Having these updates on can help have a rapid update on the transactions being carried out. This can help vet out any potential misuse of the card within the first transaction. This can also document a formal detail of every single transaction which can be revisited in the case official action needs to be taken. This can also help provide a solid reference in case an appeal needs to be made regarding that specific transaction.
Being careful with skimming devices
A major chunk of the fraudulent transaction is carried out by the means of skimming hardware. This hardware is embedded into card machines and make a copy of the card data with every single transaction. This data is further either directly misused or sold for malicious purposes. This act is even more common in shady areas without credible brands. In the case of the usage of cards in remote towns without major brands and store, the best possible way to go is to avoid card use.
If that is not an active option, then the machine must be properly inspected before the card is used to ensure that the machine is not rigged. Details of the transaction can also be noted to have proof in the future.
All these steps might seem like a hassle in the beginning but this little bit of extra work can go a long way in ensuring that you avoid any possible credit card frauds.