Some Other Kinds of Frauds
• There is something called card cloning wherein the caller poses as a bank staff and urges customers to share their card details and PIN over the phone, on the pretext that the card has been upgraded or that the card will be cancelled in the next few minutes if information is not shared with the caller. Fraudsters fit skimmers in ATM machines which scan all data of the card and make clone cards. •
b) Card-present frauds: This is less common today, but it’s still worth watching out for. It often takes the form of ‘ skimming’ – when a dishonest seller swipes a consumer’s credit card into a device that stores the information. Once that data is used to make a purchase, the consumer’s account is charged.
Here are some golden rules to reduce significantly the risk of falling victim to credit card frauds: • Never click on links in emails that ask you to provide personal information, even if the sender appears to be your bank. • Before you buy something online from an unknown seller, Google the vendor’s name to see whether consumer feedback has been positive. • When you make online payments, check that the webpage address starts with https://, a communication protocol for secure data transfer, and confirm that the web page does not contain grammatical errors or strange words. That suggests it may be a fake designed solely to steal your financial data.
Things Credit Card Companies Don’t Want You to Know • Fixed interest rates are never really fixed. • If you are late on one card payment, the APR on
all your credit cards can be raised. • Your rewards programme can change terms at any time. It’s a myth that paying off your balance on time or early harms your credit score. • Low minimum payments are for their benefit,
not yours. • The credit card industry spends huge monies on
marketing at your cost. •