Of Plastic Money: Measures To Reduce Credit Card Fraud

credit card fraud

With the day-to-day technological advancements, a significant hike in credit card fraud has been reported. This is especially common to people who travel a lot and use their credit cards to get bonus points. Also, people who do a lot of online shopping are at risk of credit card fraud.

The only foolproof way that will ensure no cases of credit card theft are heard off, is to completely eradicate the use of credit cards. This is, however, not a viable option due to the over-dependency individuals have on them.

It is on that note that companies like PowerCARD came up with an electronic payment solution to help issuers of credit cards better manage their systems. In addition, they support other operations like fraud and risk management among other backoffice operations.

In as much as there are these bodies that help fight credit card fraud, there are a few precautions that we as individuals should take in order to minimize the likelihood of the unfortunate occurrence.

Before we delve into specifics, I cannot overemphasize that information in your credit card is vulnerable to potential threats and should be guarded at all costs to avoid greater damages in the long haul.

Secure your card

The best and most effective way to keep your credit card safe is by always knowing its whereabouts; and that should be with you, always!

Another thing is to only use your credit card when necessary. This can significantly reduce the risk of malicious people from accessing your credit card information.

Use a credit card that has a EMV chip

Most criminals will use certain high-tech devices to capture information from your credit card. This is mostly done when you swipe your card at cash registers or other places that have credit card readers. The magnetic strip on the card is what contains all personal information. This data is accessed by these criminals when, for example, you give your card to a waiter to go swipe it after enjoying a sumptuous meal. The above named process is known as skimming.

The main advantage of using EMV chip enabled cards is that they only have a one-time transaction code that makes it less possible for fraudsters to duplicate your information.

Regularly change your password

One of the surest ways of protecting criminals from accessing your business information online is to regularly change your password. Besides, do not make passwords very obvious.

The use of pet names, name initials and other simple passwords like birth dates should be done with. People should come up with complicated passwords that are not so obvious and ones that are difficult to hack.

In addition, if you have different credit cards, make sure each one of them has a different password.

Check your statements regularly

Most people will have automated monthly bills and will rarely check them. One of the fastest ways to catch the first signs of fraudulent tendencies in your credit card is through regular checking.

Set up a weekly reminder and take the time to go over all your purchases and overall spending. That way you will be able to properly scrutinize even the smallest of transactions.