Don’t have a credit card? Scammers don’t care—How to safeguard yourself against scam

An IT professional who had never held a credit card lost ₹98,264. Owing to her employer's policy, she was inadvertently issued a credit card because she had a payroll account with a private bank, reported BangaloreMirror.

About the case

The scammer called her on January 15 from an unknown number, impersonating a bank official. She feigned that she urgently needed to activate the credit card within two minutes. The frightened woman received the instructions without questioning the authenticity of her call.

Pretending to be verifying her identity, the scammer forced her to download an app by sending her a fake link. As she complied with his demands, the call was promptly disconnected. In just a matter of minutes, she received SMS notification of multiple unauthorized transactions totalling nearly ₹1 lakh after that.

Understanding credit card scams

The complexity of credit card scams is on the rise, with scammers adopting various tactics to obtain personal information and execute offenses. Scammers utilize the credit card information to make unauthorized purchases, withdraw funds, or even open new accounts in another person's name. This is called credit card fraud. Such scams can happen in physical locations, such as stores and ATMs; online; or over the telephone.

Types of credit card scams

• Phishing scams: Scammers send out fake emails, messages, or phone calls impersonating employees of the bank with the intention of obtaining your card details, CVV, or OTP.
• Card skimming: Scammers attach hidden card readers, or "skimmers," to ATMs or sales machines to collect card information.
• False credit card offers: When a scammer contacts or texts you with an offer for a lifetime-free credit card or a limit increase, they will ask for your personal information to confirm your identity.
• Cashback scams: Scam messages come in that state one has to click some link or contact some phone number to collect bonus points or cashback.
• Malware attacks: Scammers use various means to trick individuals into downloading applications that can give them exclusive access to users' phones such as taking their OTPs and online banking passwords.

How to protect yourself from credit card scams?

1. Protect your card information: Never disclose OTPs, CVVs, or card numbers. Always transact using secured official banking websites and apps.
2. Activate security features: Enable two-factor authentication for online transactions. Turn on alerts for real-time notifications about respective expenditures.
3. Keep a check on your transactions: Regularly check through the transaction history and bank statements. Immediately report illegal transactions.
4. Use secure payment modes: Do not use your card in unknown places. Use virtual credit cards for online payments.
5. Report fraud immediately: If you suspect fraud, lock your card and report this incident to the bank. File a complaint at the cybercrime cell.

In conclusion, this case illustrates how swindlers may prey on the unsuspecting who rarely use credit cards. It is becoming increasingly critical to remain aware and vigilant as the unscrupulous take advantage of anxiety, urgency, and ignorance to perpetrate their crimes.