Protecting yourself from Credit Card Fraud: Common Scams & How to Prevent Them

Posted on Thursday, April 6th, 2023 | By IndusInd Bank

While the COVID-19 pandemic saw an unprecedented surge in the use of credit cards in India, particularly the online use of credit cards, post-pandemic years indicate the trend is here to stay.

According to data from the Reserve Bank of India (RBI), credit card payments increased from INR 6,30,414 crore in fiscal year 2020-21 to INR 10,49,065 crore in the first nine months of fiscal year 2022-23.

Unfortunately, increased credit card usage has also been accompanied by increased credit card fraud or scams. A report released by the National Crime Records Bureau (NCRB) shows that 3,432 cases of debit and credit card fraud in India were registered in 2021, an increase of nearly 20% from 2020. If you are a credit card user or are thinking of obtaining one and are worried about the risk of fraud, read on to get the complete lowdown on common credit card scams and what to do to prevent these.

5 Common Types of Credit Card Fraud & Prevention Tips

1) Phishing:

In phishing scams, you are persuaded to hand over your card details to someone under the guise of something else. The fraudster might impersonate a bank or reputed company or service and provide instructions or links to gain access to sensitive information. For instance, you could be asked to share your OTP or other details on the phone, or an SMS or email may direct you to a fake website. Once you put in your card details on these fraudulent links, the scammer can access and subsequently misuse these.

Prevention Tip:

NEVER give answers to questions pertaining to credit card security or personal details on unsolicited calls. Such requests are usually marked by a strange sense of urgency – a definite red flag.

NEVER click on suspicious links. Look out for the tiny lock icon on the top left corner of the URL or the ‘https://’ at the beginning of the URL.

2) Skimming:

A classic form of credit card fraud, skimming involves duplicating or stealing your credit card data from its magnetic stripe via an electronic device that is attached to either an ATM or a merchant’s terminal. Worst of all, the target has no way of knowing their card information is being fraudulently stored until monetary transactions begin to take place.

Prevention Tip:

DO NOT swipe your card using any machine that looks tampered with. Keep an eye out for signs such as unaligned graphics, loosened or crooked parts, or any components that seem to differ between one Point-of-Sale (PoS) device and another nearby.

3) Keystroke Capturing:

In case of an online transaction, a cyber-thief might deploy keystroke
logging with the help of certain malicious software to steal your credit card data. This usually begins after you have inadvertently clicked on a link, installing the malware on your system. Every key you press on your computer is subsequently recorded by the software, including your card number and PIN.

Prevention Tip:

Use a virtual keyboard while entering personal information such as ID and
password details. Get an added layer of protection with quality antivirus software.

4) Fake Application Fraud:

Prevention Tip:

Keep track of all your IDs and other such important documents. Make sure to tear redundant copies into shreds before disposal. Scratch or destroy credit card bills with your full credit card number on them.

5) Stolen & Lost Card Fraud:

It is obvious that if you lose your credit card or it gets stolen by a
thief, they are free to use it until it gets cancelled, frozen, or reaches the credit limit. Moreover, if you decide to throw away an active credit card you no longer want, a thief could always retrieve it from the bin and begin to use it.

Prevention Tip:

Set up SMS alerts for all transactions so you can be immediately notified of any fraudulent activity; report the theft to your bank and block or freeze the card as soon as possible. Use credit card protection services such as the ‘Total Protect’ programme provided by IndusInd Bank
for IndusInd Bank credit cards.

Total Protection with IndusInd Bank Credit Cards

IndusInd Bank credit cards have several features that ensure the safety & security of your card. To begin with, there is the ‘Total Protect’ insurance programme that covers you for an amount equal to the credit limit on your card for:

a) Unauthorised or fraudulent transactions: In case of loss/theft of card.

b) Counterfeit fraud: In case your card or card details are stolen and misused by producing counterfeit plastic.

Secondly, several IndusInd Bank credit cards such as the Legend, Nexxt, EazyDiner and Platinum Aura Edge are chip-based contactless cards that simply require you to tap your card at merchant locations,
enabling faster and 100% secure transactions. There is no need to swipe the card, hence keeping you safe from skimming attacks.

In a Nutshell

Credit card fraud is a terrible thing that can happen to anyone albeit for no fault of their own. That said, there are precautions you can take to avoid being scammed. Keep your details safe and take care of your card as you would of any other valuable object you own! Apply Now Online!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.