How to Avoid Debit & Credit Card Financial Fraud
Debit card fraud occurs when a criminal gains access to your debit card number and in some cases, your personal identification number (PIN), to make unauthorized purchases or withdraw cash from your account. There are many different methods of obtaining your information, from unscrupulous employees to hackers gaining access to your data from a retailer’s insecure computer or network. Fortunately, it doesn’t take any special skills to detect debit card fraud.
Debit card fraud falls into two major categories: where the criminal uses the physical card of the consumer and card-not-present (CNP) fraud, in which fraudsters siphon money from the payment card via using it online or over the phone.
The prior can occur in many ways, from theft on the street and intercepting your mail to attaching a card skimmer device to an ATM to create a counterfeit card. In these cases, fraudsters use the physical card (or a cloned card) either at an ATM to withdraw cash or at a point of sale (PoS) terminal at a merchant.
On the other hand, cybercriminals utilize a wide variety of tactics to acquire debit card details for CNP fraud, including hacking centralized databases of merchants or financial services, skimming, and phishing attacks. After they have the necessary information, which is often paired with sensitive personal data like social security numbers, date of birth, name, and billing address, perpetrators use this to purchase products and services at merchants to be sold later or open new financial accounts to monetize the stolen card details. Here are two basic ways to protect yourself from such fraud.
Keeping the Credit Card safe
The primary step for credit card fraud prevention is to keep the credit cards in a place which is not easily accessible to others. First, make sure that a new credit card kit/envelope is not tampered with, and sign on the back of the card as soon as you receive it.
Always keep the credit card secured in a small wallet which will make it difficult for snatchers or pickpockets. After every purchase, one must never forget to put the card away as soon as possible because thieves can store a digital imprint of the credit card through snapshots using cell phone cameras. It is also recommended to confirm the possession of the credit card in your wallet from time to time, even if you have not used it in a while.
Review your statement each month
Online bank accounts typically offer a transaction log where you can regularly review your purchases, but it’s also worthwhile to run through your statements each month to see if you missed any unusual activity. If you find a questionable charge, be sure to contact your debit card issuer immediately.
More in Life Hacks
Celebrities We’re All Hoping to See Making a Grand Comeback
There is a certain nostalgia that strikes when you hear an old favorite song on the radio, instantly transporting you back...October 12, 2023
Money-Related Questions to Ask Before Moving In Together
Moving in together is a significant milestone in any relationship. It’s a time filled with excitement, hope, and the promise of...October 6, 2023
Using Modern Tech to Take Your ‘Man Cave’ to a Whole New Level
Every man cave is a reflection of one’s personality, hobbies, and tastes. From cozy corners to sprawling rooms filled with memorabilia,...September 30, 2023
The Benefits of Breastfeeding for the Mother and the Baby
Breastfeeding is an age-old practice that has stood the test of time for its remarkable benefits to mothers and infants. The...September 30, 2023
Inflation Surge Over the Decades: What Lessons Can We Learn?
As an aspiring investor, understanding the history of inflation surge is vital. Inflation is a common phenomenon that affects most economies...September 21, 2023
Barbie and Ken’s Relationship: Weird Details We All Ignore
Barbie and Ken have been a part of most of our childhoods. We grew up playing with Barbie dolls, dressing them...September 15, 2023
The Future of the Healthcare Industry
As technology continues to evolve at an unprecedented pace, the realm of healthcare stands on the cusp of a remarkable transformation....September 5, 2023
Looking to Create a Dream Living Space? Here Are Some Tips for You
Your home is your sanctuary. It is where you relax, unwind, and spend time with your loved ones. Your living space...August 29, 2023
Leadership Lessons Gained From Fatherhood
Leadership is a skill that extends beyond the boardrooms and workplaces. It can also be cultivated and honed in the everyday...August 24, 2023