Credit Card Frauds

Consumer Voice - - Bfsi -

• Min­i­mum re­pay­ment • An­nual/re­newal fees • Charges for is­sue, add-on cards, cheque re­turn,

cash with­drawal, de­layed pay­ment, etc. • In­ter­est rates on pay­ment due • Loy­alty points or rewards pro­gramme • Cash­back, if any Af­ter you have ap­plied for a card, the credit card is­suer will look at your in­come, credit his­tory and the doc­u­ments you have pro­vided in your ap­pli­ca­tion to de­ter­mine whether you are a high- or low-risk ap­pli­cant. Es­sen­tially, they are look­ing for signs that you have the abil­ity to re­pay the money you bor­row.

There are many kinds of credit card fraud, and they change ever so fre­quently since new tech­nolo­gies en­able novel cy­ber crimes. In the main, there are two main cat­e­gories of such frauds. They are:

a) Card-not-present (CnP) frauds: This is the most com­mon kind of fraud. This oc­curs when the card­holder’s in­for­ma­tion is stolen and used il­le­gally with­out the phys­i­cal pres­ence of the card. This kind of fraud usu­ally oc­curs on­line, and may be the re­sult of so-called ‘phish­ing’ emails sent by fraud­sters im­per­son­at­ing cred­i­ble in­sti­tu­tions to steal per­sonal or fi­nan­cial in­for­ma­tion via a con­tam­i­nated link.

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