Some Other Kinds of Frauds

Consumer Voice - - Banks' Credit Cards -

• 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. •

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