Since their arrival as Diner Cards in the 1970s, Credit Cards have been a revolution in the finance industry. They have been the building block for modern cashless modes of payment. Basically, credit cards are like an e-loan, whenever you use a credit card to buy something you are loaning a certain amount of money from the credit card company. These expenditures are later billed to the credit card holder as a monthly statement. This bill usually contains the sum you have to spend on commodities plus a certain fee levied by the credit card company as a charge for their services.
Normally, we all have certain spending habits. Some of us are very low-key who use our money tactically, whereas some are spendthrifts. Consider you have been experiencing an unexpected spending spree on your credit card bill, and you know the enlisted expenses are not justified as you never bought that thing. Then, most probably you are a victim of Credit Card Fraud.
Every credit card has a golden chipset engraved into them. This chipset contains all the information about the card and acts as the interface for transactions. Card numbers and PIN act like keys to the complex information stored in the chipset. As technology has reached its peak and dependence on cloud data has made it hard to retract such crucial information like credit card details we often think using Credit Cards is safe. But consider someone with great coding skills gets the hold of some basic pieces of information like Card numbers and Pin. Then it's just a matter of minutes until they can get complete accessibility to someone's Credit Card.
How Credit Card Fraud usually happen
- When you lose your credit card - At the end of the day, a credit card is a small object with negligible weight making them prone to lose.
- When someone counterfeits or clones your card details.
- Via emails from fake companies who offer great deals on luxury items and ask for your credit card details for registration.
- When someone intentionally steals your Credit card. In comparison to cash or valuable objects, a credit card is way easier to steal and sneak past with.
What to do if you are a victim of Credit Card Fraud
- Notify the credit card company immediately.
- Verify the location and estimated time of fraudulence.
- Close down your account or ask to freeze your card right away.
- Apply for a new card and account number.
Things to keep in mind regarding Credit Card Fraud and how to avoid them
- Beware of the companies' credit card protection policies, as credit card companies are very strict when it comes to card protection. Each card is registered under a unique username and linked with third-party companies who provide the financial backbone and insurance cover in case of an emergency. This means, even if your card is stolen and misused you will not be liable to pay the laundered amount.
- Keep an eye on all the bills and reports. It is often found that people take more than 4 days to notice a sudden change in their expenses. Thus, constant monitoring of bills helps you to keep everything in check.
- Always keep an eye on your credit card, as once lost these are really hard to reacquire.
- Don't fool around with credit card security, as any illegal steps to launder money via Credit Card fraud by owners can cost 3 years of prison and up to Rs 1 lakh in fines.
- Many credit card companies nowadays offer credit card protection schemes. These schemes are like insurance, where you pay a nominal amount per year and the company covers any losses you occur during that period because of credit card fraud.
Every year there are more than 50,000 reported cases of Credit and Debit Card Fraudulence in India which causes a laundering of nearly Rs. 220 crores. If you think you are a victim of such an event then call the customer services of your credit card company immediately.
And lastly, Credit Cards are a financial responsibility so everyone should keep their cards safe with utmost vigilance and privacy.