#FinancialBytes: 5 types of credit card frauds to know about
What's the story
Credit cards play an essential role in our financial lives and are one of the most widely-used cashless payment methods. Nowadays, credit card theft and fraud involving latest technologies and scamming methods are on the rise. So, it has become necessary to protect credit cards and avoid becoming the target of fraud. Here are 5 types of credit card frauds one must know about.
#1
Keystroke logging, one of the most common frauds
Online fraudsters or keystroke loggers might trick credit card holders into unintentionally installing malicious software through emails containing contaminated links. This software can record anything the user types on their keyboard. So, whenever the cardholders use their credit cards to shop or make payments online, the software will send their passwords and credit card payment details to hackers.
#2
Fraudsters might steal card information by impersonating bank officials
Some fraudsters also call credit card holders on their mobile phones and impersonate bank officials to steal their CVV numbers and PINs. They will convince the cardholders to reveal their payment details by saying that they want to upgrade or verify the credit cards. Some scammers ask the customers to provide the OTPs they have received on their mobile to verify their cards.
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#3: Phishing and vishing attacks
Phishing and vishing are also common credit card frauds. Phishing involves theft of financial information through emails sent by fraudsters impersonating banks/financial institutions to trick customers into revealing passwords and PINs. Vishing is similar to phishing but it is done through mobile phones using SMSes.
#4
Card skimming, merchant or point-of-sale fraud
Card skimming is one of the simplest yet effective credit card frauds that occurs at a merchant's store or points of sale (POS). In this, data skimming devices (small electronic devices) are used to read and copy card information when customers swipe their credit cards at a store. Dishonest merchants or store employees help criminals to steal the credit card details of customers.
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#5: Pharming is another advanced fraud technique
Fraudsters might also use "pharming" to target cardholders. In pharming attacks, customers receive emails containing deals/discounts that look like they have seen sent by e-commerce websites. After clicking on provided links, customers are rerouted to genuine-looking fake websites through which credit card details are stolen.