Credit Card Fraud - What To Look Out For

Credit Card Fraud - What To Look Out For

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Electronic cash has taken over the world, and as technology progresses there are even more payment options available which involve the absence of coins and notes. ATM's, chip and pin payments and online shopping have reduced the amount of physical cash exchanged. This growth in electronic cash brought with it, a whole new crime - credit card fraud.

Online Credit Card Fraud

Phishing

Phishing is a method in which a fraudster attempts to retrieve credit card details or personal information to steal a person's money or identity. These phishing emails mimic the style and name of a popular company, the recipient may not necessarily even have an account with the company asking for the information. In many cases, the emails imply severe urgency and warn the receiver that failure to follow their instructions will result in closure of their account or a similar penalty.

Spotting these emails is becoming increasingly difficulty, particularly for someone new to the internet. The main giveaway is if the recipient doesn't have an account with the bank, it's obviously a bogus email. Secondly, legitimate banking websites would never email their customers asking for any account information, such as passwords, account numbers, PIN number or security codes. Anyone who receives an email which causes them concern should contact their branch directly and enquire before following any of the directions in the email.

Pharming

Pharming is when a fraudster uses a bogus website, which mimics the characteristics of the legitimate website, in order to receive details off the victim which they use for identity theft or credit card fraud. Pharming websites aim to look identical to the site they're copying in order to scam people. However, slight differences on the page may expose that the site is counterfeit. Pharming is harder to detect than phishing and often scams a larger amount of people.

Before entering any personal information, users are advised to check that the site is secure. SSL (Secure Socket Layer) is indicated by a padlock symbol which often displays in the navigation bar of the browser. Absence of this padlock symbol when entering any personal information could indicate an unsecure, counterfeit website.

Offline Credit Card Fraud

Skimming

ATMs allow money to be drawn within seconds at any time of the day and are great for convenience. However, they're also another platform for theft which fraudsters use to gain access to credit card and personal information.

Skimming is a technique which is used to obtain the cardholder's details between the time of inserting the card and completing their ATM transaction. Many skimmers fit false devices, which are hard to detect, onto the ATM where the card reader usually is. This enables them to obtain the information engraved or printed on the card. These are generally accompanied by hidden cameras which capture the victim's PIN as they enter it. Keypad overlays may also be used, which match the legitimate keypad underneath but record which buttons are pressed. The information is then transmitted to the fraudster.

Tracking Finances

Raising awareness of the tricks used by credit card thieves helps to prevent people becoming victims of fraud. Regularly tracking finances via online banking or bank statements is imperative to identifying some of the more subtle thefts. Some people don't realise they have even been scammed.

Fraudsters use personal information for identity theft, obtaining unsecured loans and credit card fraud. Tracking finances and being aware of methods used to scam can help to reduce the number of people falling victim to credit card fraud.

About the Author:
Written by Stephanie Staszko on behalf of Finance Facility who specialise in unsecured loans



Article Originally Published On: http://www.articlesnatch.com


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