How Is Credit Card Information Stolen And What Are The Ways To Prevent It?

By Medha Roy Chowdhury | May 20, 2019

The ever-rising breach in Credit Card security can put you on high alert. If you’re looking for tips to prevent fraudulent Credit Card practices, you’re at the right place.

Consumers are increasingly concerned with card data protection. Even simple modern practices such can jeopardise your financial security. For instance, it is best not to store your Credit Card or even Debit Card information on online shopping websites. Though this may seem quite convenient, it definitely puts your financial information at risk.

Additional Reading: Lost Your Credit Card? Here’s What You Can Do

Wondering how your Credit Card information can be stolen if you always make sure never to leave your card neglected? Well, fraudsters can steal your sensitive information from right under your nose without your card ever even leaving your possession. More of than not, victims realise that their data has been compromised till it’s too late, and their details have been used to make unauthorised purchases.

How is your Credit Card information stolen?

  • Hacking

 Did you know that thieves can steal your information through a business provider where you have used your card? By breaching a company that manages some aspect of Credit Card processing they are able to steal sensitive financial details that can be used to make purchases online and unauthorised transactions.

Additional Reading: How To Protect Your Money From Digital Banking Frauds

  • Skimming

A skimmer is a tiny device that detects and captures your Credit Card information during a legitimate transaction. Skimmers are secretly placed over the credit card swipe at gas stations and ATMs. In certain cases, thieves may even tip cashiers to skim the Credit Cards of customers.

Additional Reading: Online Shopping: Safety Checklist

  • Installing malware or viruses on devices

This method makes use of your computer, tablet, laptop, or even smartphone. Hackers design software that can be easily disguised in email attachments or other software. This malware sits on your devices and can go undetected for long periods of time.

Often, fraudsters rely on public Wi-Fi and trick people into installing malware concealed as a software update. These viruses are designed to monitor the keys pressed on your keyboard and are able to take screenshots of your payment pages, thereby intercepting confidential information effectively.

Additional Reading: 3 Unmistakable Signs Of Identity Theft

  • Tricking

Ever received a text message or a phone call asking for your bank or card details for verification purposes? Don’t be fooled by such calls. These are scams set up by Credit Card fraudsters to trick consumers into giving up Credit Card information.

  • Fishing in the garbage

 Never discard documents or payment receipts that contain your Credit Card number. This will put you at great risk of identity theft.

Make sure to always shred such private documents before dumping them in the trash. Unfortunately, we have no control over how businesses choose to get rid of their records. However, any piece of paper that has your bank account or card number written or printed on it should make its way straight to the shredder.

To avoid getting into such traps, remember to always register for both SMS and email alerts that notify you of your transactions. This way, you’ll be able to track various activities on your bank or Credit Card account and report any irregularities you spot.

Additional Reading: How To Keep Your Identity Safe

What are EMV Chip cards?

The Europay, MasterCard, and Visa (EMV) chip-based cards generate a one-time code for every transaction, thereby making it impossible for fraudsters to create counterfeit cards for malpractices. Upgrading to an EMV chip-based Credit Card is a sure way to enjoy a safe experience!

Instead of magnetic stripes, EMV cards store data on microprocessor chips embedded in your Credit Card. Therefore, each time a transaction is completed, these cards create dynamic data, which prevents fraudsters from duplicating it!

If you use Credit Cards frequently, don’t panic. Besides switching to chip-based Credit Cards, there are multiple ways to make sure to stay away from the fraud trap. We’ve listed a couple of pointers that will come in handy.

Additional Reading: Read This Before Using EMV Chip Credit Cards

Did you know that your Credit Card issuer probably has certain services that you can use to establish a layer of protection for your confidential financial information? Below are some of the feature.

  • Setting Limits: Banks let you set certain geographic limits only within which to use your card. This way, there’s no chance you’re card be used anywhere beyond the limit you’ve set!
  • Easy To Block: Most banks have apps that you can use to block and unblock your card as per your discretion. When not in use, you can easily block your card and prevent any fraudulent usage!
  • Prevent Fraud: Want to avoid misuse of your Credit Card? Just fix a daily transaction limit for your card and you’re all set!
  • Place Restrictions: Did you know that you can choose and set a limit on what your card can be used to pay for. For instance, will you use your card to pay for utilities or for your dining or fuel needs? The decision is up to you!

Additional Reading: Digital Lockers: A Safe And Secure Place To Store Your Financial Documents

As an added security measure, make sure to follow these Credit Card hygienic practices!

  • Do not respond to emails that ask for your Credit Card details. Remember, banks never ask for such sensitive and private details over email.
  • Never write your PIN on your Credit Card. This is a classic mistake. This will pose a considerable risk of misuse in case you happen to or misplace your card.
  • Check your Credit Card statements regularly. Carefully to check for any unauthorised transactions. If you notice any, alert your bank immediately.

Additional Reading: Safe Credit Card Practices You Should Be Following

Now that you’re prepared to take on any Credit Card security challenges, time to take a look at our exciting Credit Card offers! We’ve even got a host of financial products such as Personal Loans and Fixed Deposits for you to choose from!

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Credit Cards Digital Security Fraud UCN
Medha Roy Chowdhury

About Medha Roy Chowdhury

Square peg in a round hole, Medha reads whenever she gets the chance to. She is happiest when travelling and dreads having to choose between the hills and the sea. Dog lover at heart, she is in pursuit of adopting a few canine friends someday. Weird as it may be, she bakes when stressed. Previously a Market Research Editor by profession, she takes a keen interest in finance. When she is not reading, you’re sure to find her with her ukulele.

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