Anyone who uses credit cards can become a victim of fraud. To prevent possible misuse, there are a few tips that users should follow.
Credit cards have one undeniable advantage: They are an extremely convenient means of payment and are easy to use for cashless payments on the Internet. That is why they are a popular payment method worldwide. But: Plastic payment methods are an attractive target for criminals. We will explain below how fraud attempts can be identified early on and how credit card security can be maintained.
Typical fraud attempts that users should be aware of
Fraudsters are constantly developing new methods to rip off credit card owners. In most cases, they steal credit card information to use it for illegal transactions. Security authorities warn against the following scams:
- Identity theft: Fraudsters collect personal data and use it, for example, to create new accounts.
- Credit card cloning: Cards are stolen credit card data cloned.
- Unsafe websites and online shops: Online shops that do not pay enough attention to security store credit card information – in the event of a hack, it is then in the hands of fraudsters.
- Querying data over the phone: Callers pretend to be bank employees and ask for credit card information.
- Phishing: A similar scam is sending emails in the name of financial institutions. These often contain links with a request to follow them. They lead to fake websites, some of which look surprisingly real. There, users are asked to enter their credit card details.
- Skimming: In this case, devices are installed on ATMs that can steal data via the magnetic strip when the credit card is inserted. Fraudsters can then use the data to create clone cards or make purchases on the Internet.
- Theft: The classic is still theft of the card – with the data on the card, shopping on the Internet is usually possible without any problems.
Credit card companies naturally react to every new fraud scheme and want to guarantee their customers a high level of credit card security. Certain security features are almost standard. American Express, for example, offers an EMV chip that is supposed to be more secure than the tried-and-tested magnetic strip. According to the provider, the 3D Secure process enables secure online shopping thanks to a check in the background.
Tips for optimal credit card security
To ensure the security of their credit card, customers can take certain measures themselves. Credit card users should note the following:
- Always store your credit card safely: This protects against theft. The fraudsters should also not be able to photograph or write down the card data.
- Check invoices: The monthly credit card statement should be checked regularly and carefully. If you notice any unauthorized transactions, you should act immediately.
- Check websites: Especially when shopping online, websites should always be trustworthy and checked for a secure connection (https).
- PIN and passwords: Strong passwords are particularly recommended on the Internet where credit card information has been stored. If two-factor identification is possible, it should be used.
- Saving data: It is best not to store credit card details anywhere online. While this is tempting and makes online shopping easier, it also provides opportunities for fraudsters to commit fraud.
- Enable notifications: Most credit card companies offer the option of being notified by SMS or email when a transaction has taken place on your account. Installing mobile apps from your credit card provider is also beneficial.
- Recognizing phishing emails: Banks and credit card companies generally do not ask their users to disclose their sensitive data via a link in an email. In addition, scam emails can often be identified by small details such as spelling mistakes or strange email addresses in the sender field.
- Virus scanner and firewall: Especially if sensitive data is used on the computer, it should always be protected by virus scanners and firewalls. The latest security updates should also always be installed.
- Keep credit card details safe: Sensitive credit card data should never be sent via messenger, SMS or email. Secure internet connections are also essential; public Wi-Fi networks, for example, can compromise security.
- Keep contact details up to date: Banks and credit card providers should always have up-to-date contact details available so that the user can be reached immediately in the event of fraud.
- Disposal: Old credit cards and paper statements should not be thrown away in the household waste. Credit card statements are best shredded, and credit cards that are no longer needed can be handed in to the bank.
The credit card provider Barclays protects its customers with a sophisticated security system that automatically checks every single transaction. If there are signs of fraud, the cardholders are contacted immediately. Users can also keep track of all transactions using an app.
What to do in case of fraud?
Anyone who nevertheless becomes a victim of credit card fraud should take the appropriate measures immediately:
- Contact your bank or credit card provider immediately and report the incident
- It is best to have the card blocked immediately – the blocking hotline in Germany is 116116, from abroad it is +49116116
- Request a replacement card and change all passwords and PIN
- Check credit card statements for fraud and report them to the financial institution
- Report to the police
- Legal advice may be useful in order to obtain compensation
- Contact your financial institution regularly to receive updates on fraud incidents
This article contains so-called affiliate links. More information can be found here.
Source: Stern
