6 Credit Card Scams And How To Avoid Them

Credit card scams are quite common. This trend accelerated, especially during the Covid-19 pandemic. Read further to know 6 credit card scams and how to avoid them.

Credit cards are an indispensable payment method for many consumers. It is convenient and beneficial in many ways. Whether you want to purchase an expensive gadget or pay for groceries, it is accepted everywhere. Given its numerous advantages, there are also safety concerns related to it. Though you may not have experienced any credit card scam such as phishing, cyber-attack, skimming, etc., you still need to be aware of such unknown attacks as a precaution to safeguard from any trouble. Let’s get to know 6 types of credit card scams and what actions you should take to avoid them.

1. Physical theft of card:

Credit card theft is one of the most obvious ways through which the security of the card can be compromised. While travelling or shopping at a store, make sure you safely keep your card in your wallet. In case you lose the card, you need to immediately inform the credit card company about the theft incident so that your card can be blocked.

2. Physical theft of card:

People who pose as insurance agents or company credit card representatives convince you to provide the credit card number and other personal details. An official bank representative will never ask customers to share any card details.

3. Skimming

Such instances typically take place at gas stations, ATMs or any such places. Scammers install a small electronic device on the card reader machines. The skimmer reads the card information mentioned on the magnetic strip at the time you swipe or insert the card. Skimming activity is quite prevalent in highly visited tourist places. Look for signs of tampering & if you suspect such scamming, you can move to contactless payments to avoid it.

4. Interest Rate Scam

The scam happens when you get a pre-recorded call from an unknown number sharing the great news that you can lower the rate of interest on the credit card. The call claims to have a connection with the credit card company and promises to reduce your payments. However, in reality, there is no such connection. The whole thing is a scam to reveal your credit card details.

5. Overcharge on card

You may get a text or call asking you to clear overcharges on the recent purchase. This is one of the common scams where the scammer will take all the personal details and ask you questions related to credit card transactions. Once you spill the card details, fraudsters get the chance to conduct online transactions using your credit card details.

6. Cyberattacks

This usually happens when hackers hack the servers where confidential credit card information is stored. While there are limits as to what customers can do, but to avoid this, you can take certain steps to protect your card details. Avoid using any external source for logging into your internet banking account to track or manage your credit card. Also, ensure that you choose a credit card that has complete safety. For instance, ICICI Bank’s credit card takes all the safety measures to protect the card from all kinds of fraud.