Credit & Debit Card Scams

Credit & debit cards are not only two of the most popular means of making online payments thanks to their ease and convenience, they are indispensable for many people. However, using cards online can also be a double-edged sword that poses some dangers to the user. If you are not well-prepared to face the perils of the Internet, there are many ways in which credit & debit cards can be misused, as well as many card scams you could fall for.

Impersonation of a Service

Scammers can very easily pretend they are an organization you do business with by reproducing an identical website or emails from that same organization. In an act of scam known as ‘phishing’, they will contact you and mention that you need to immediately update your credit or debit card details on your account for some reason - as they owe you money, for instance.

Unfortunately, this is a sham and if you fall for it, the scammer will be in possession of your card details which can allow them to take any amount from your account. You should keep in mind that your bank or any other organization will never ask you for sensitive information such as your credit card details or passwords over the phone. If you need to update that information on a website, always navigate to the official website directly instead of clicking on a link.

Interest Rate Reduction Scam

This involves scammers approaching credit card owners with an offer to reduce the interest rate they are paying for their credit card. Of course, a fee must be paid to enroll in the program. They create a sense of urgency by repeatedly mentioning that the offer is only available for a limited time. To make you act fast, they may even claim to have a money-back guarantee. 

If you agree to enroll, they will ask for your credit card details over the phone. Once they have these details, it allows the scammers to carry out unauthorized transactions. 

It is common for the fraudsters to leave pre-recorded voicemails asking you to call them back. If you do call them back, you could end up being charged for the phone call even if you decline the services.

Skimming

Physically paying with your credit card in a store or using it to withdraw money is not completely safe either. It is possible for scammers to capture your credit card information during a transaction with a skimming device, that is most commonly placed in ATMs or gas stations. Once your card has been skimmed, a copy can be made, and the scammers can put fraudulent charges on your account.

Unfortunately, skimmers can be difficult to detect to the untrained eye. Avoid any credit card device that looks like it has been tampered with and cover with your hand when entering your PIN. Monitor your credit and debit card accounts closely. If you spot any charges you didn’t make, contact your credit card issuer right away.

Data Breach

When purchasing through a website or marketplace, you have the option to store your credit card details into the website in order to make the payment faster during your next order, and that allows the website to store that data in their system. However, let’s imagine that the website’s system is the victim of a cyberattack that results in a data breach, it means that many customers’ data will leak and get accessed by the fraudsters.

How to Protect Yourself

• Monitor your account closely: Keep an eye on the transactions at least once a week or so in order to be aware of the expenses that reach your account. Make sure that you know exactly which purchase corresponds to each invoice.
  
  If you think that your card has been misused due to there being some expenses that you don’t recognize, reach out to your bank immediately and explain the problem to them. They will be able to block your card, and in the best case, your insurance can cover your loss. Credit cards also have a ‘chargeback’ facility that allows you to reverse the charges with minimal hassle, provided you apply for it within the time period allowed by your card provider.
  
  
• Only buy from trusted portals: Always make sure that the website you shop at is real and legit. You can do so with ease by entering the website URL Scamadviser.com. You can also perform a manual check by noting the points given in our article on How to Recognise a Scam.
  
  
• Keep sensitive information private: When you use your credit card in a public space, try to ensure that the machine is legit and has not been tampered with. Always hide your secret PIN when entering it on the pad to keep it safe from prying eyes.
  
  
• Avoid storing card information online: Card details can often be compromised in data breaches carried out by hackers. To avoid your card information from getting leaked, do not store it on a website for a later purchase. It may be a bit inconvenient to enter the details every time, but it also greatly reduces the chances of your card being misused.

If you suspect that you have been scammed after making a payment using your card, follow these steps to apply for a refund: How to Get Your Money Back From a Scam: I Paid the Scammer Using a Credit or Debit Card.