In the world of digital transactions, credit cards have been at the forefront of innovation. It is fast, simple, and easy to use. Not to mention the ease of not having to carry around cash everywhere. But like everything digital, credit cards are also at the risk of getting compromised. And that adds to a host of other worries. Resolving credit card frauds is a painstaking procedure. Unauthorized transactions not only defraud a person of their money but also end up hampering the credit score. So, what is the workaround to this?
How Does Credit Card Fraud Happen?
There are several different ways of credit card fraud. And each of these is a degree above the rest. That means a cardholder has to be a vigilante over several things. But should that deter a person from getting a card? Not at all. Here are some of the common ways a card gets compromised. And as it will become apparent, a few precautionary measures would be enough to secure a card.
-Physically stolen card
– Scanning the number and Code for Verification (CVC) code
– Access to computer and credentials
– Unauthorized wire transfers
– Access to a recovery mail
– Phishing
How to Prevent Credit Card Frauds
It might seem like there are a lot of ways to get compromised. However, just like the means, there are also ways to secure a card. And each of the following steps will add a layer of protection. Essentially iron cladding the card against any threat.
Security Check The Internet Banking Devices
Since internet banking became a supplement to card transactions, hackers target the computer or the mobile to access card credentials. These malicious attacks are often launched as a virus or phishing filter. So, it is important to run a security check through antivirus software. It is better to use paid ones as free ones often fail to detect advanced attacks.
Issue Transaction Alert
This feature comes as a standard with most credit cards. The bank will send a transaction alert SMS to the designated number associated with the card account. However, there are some added charges for this feature. But it is useful considering the instant notification for any unauthorized transactions.
Lock The Card
It is only human to misplace a card. In any case, the prompt action should be to lock the card, regardless of where it might be. Whether a person forgetfully misplaces or gets stolen, locking the card ensures that no one can make any transaction with it. The process is also simple. A cardholder just needs to call the 24/7 hotline or the card division and request a lock.
Stay Up to Date
Let us be honest, it is impossible to list all the different ways a card can get compromised. Every day hackers and scammers are coming up with new and innovative ways to defraud card clients. The best way to stay ahead of the scammer is by staying up to date. Most of the time, scams and forgeries are reported on the news and portals. Find out how it is done so that it becomes easier to see the pattern if and when it happens.
Obfuscation
Consider a scenario where the anti-virus or checkups couldn’t remove the malware from the internet banking devices. Then what? The credentials remain exposed to the risk of being compromised. Obfuscation can help even if the device gets compromised. It’s a process of adding another layer in addition to the computer firewall on the credentials. The credentials are protected with encryption or dedicated security in addition to the active firewall. As a result, even if the device gets compromised, the credentials will not.
Do Not Share The Pin
This one is a given thing. The pin is a crucial access point along with the card number. It is impossible to use the card virtually without the pin. As a result, it is important to safeguard it no matter what. Most of the time, the bank itself will issue a random 4-digit combination as the pin. But some banks allow the client to choose their own pin. In any case, do not go for obvious combinations like 1234 or birthdays. Keep it random and keep it in memory.
Secure NFC Payments
POS machines have advanced since their initial days. Nowadays there is no need for card swipes and pin typing. NFC enabled cards can simply be tapped into the POS machine and the transaction will take place, without having to put in the pin. This has made card transactions even easier. But it has opened doors for physical card thefts as well. Depending on the usage, consider turning off the NFC payment system or include pin verification even while using NFC.
Using RFID Blocking Card Holder
The seamless NFC transaction mentioned above happens because of the RFID chip installed in the cards. It makes the transaction process smoother and faster. However, a hacker can replicate the card by standing in a scannable vicinity of the card. This exposes the card to hackers without ever leaving the pocket of the client. As a result, it is important to use an RFID blocking cardholder or a wallet. That way, it will be impossible to scan the card without explicitly showcasing it.
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Check For SSL Security
Credit cards have made online payments hassle-free. Nowadays people prefer to pay digitally for online purchases. But before making any payment, make sure the SSL certificate of the website is up to date. SSL certification is cloud encryption that helps to keep sensitive data safe by ensuring that it doesn’t get stored on the site. A valid SSL certificate helps to ensure the legitimacy of the site and transaction as well as safeguarding the card information.
Final Thoughts
Hackers and frauds are finding newer ways every day to compromise credit card information. Yet some basic steps and precautionary measures by the client can help them avoid being defrauded. Cards have brought about a paradigm shift in a market transaction. The issues of security will forever be there as collateral. The best approach would be to stay cautious and responsible.
Source: United News of Bangladesh