Credit cards provide you with financial support. Also called plastic money very often, credit cards are the best for instant financial transactions in the present world. While the ease of use and convenience makes credit cards an extremely popular and preferable choice for making the purchase, they may turn in the incorrect direction if not utilized properly.
As credit cards contain all info like your name, CVV, credit card number etc., required for making the purchase, anybody who has such details can simply spend all your limit on the card without you knowing about it. Thus, it is very important for you to be careful about the credit card scam. However, in case you lose the card, here is a guide you must follow.
What is a credit card scam?
A credit card scam takes place when a fraudster or thief uses your stolen card or the details mentioned on the card to conduct unauthorized buys in your name. The fraudster might even take out the cash advances through your account. As credit card frauds aren’t rare, they may happen to you as well. Credit scams also take place when the fraudster or thieves use your existing credit card account by acquiring access to your card info and using such details to make the purchase without your consent or knowledge. Hence, you should be extremely careful regarding your credit card and ensure to regularly check your transactions.
Here are some ways how credit card scam might happen –
- Fraudsters or thieves might steal your cards and use the numbers and details mentioned on them to purchase products.
- Criminals might get access to your personal info in several ways, like via phishing scams through emails, phones or social media channels. Or might copy your pin codes and skim your card details via the card readers are among other ways of misusing your info.
- Identity theft methods also involve various methods where the fraudster hijacks existing loan or credit accounts in your name and takes control of your present accounts by changing your mail address and password.
What must you do when you lose your credit card?
Credit cards are extremely handy financial instruments that can simply be carried anywhere. While it works as an additional benefit, it might also work otherwise. The smaller your financial instrument, the higher its chances of being misplaced. And if anyhow, you end up losing your credit card, you might also end up losing a massive chunk of money. Hence, you should thoroughly be careful with credit cards as and when you avail yourself of one. However, if you still somehow lose your card, first, you must block the card instantly. After this, you must move ahead with applying for a new card. Here are some steps that you should follow if you misplace your credit card:
- As soon as you know your card is missing, you must straightaway inform your issuer as soon as possible. Your credit card issuer or bank will certainly have a 24X7 customer support system to help you in these cases. You can find out the customer care details by visiting the official site of the bank.
- Besides speaking with the customer care support, you must also submit an email to the bank’s email to have written proof concerning this issue. Do not forget to include all the details like your place and time when you lost the credit card and how you lost the card.
- Next crucial thing is that you must keep track of your card billing statement. Be sure that the fraudster or thief that found your card does not use it for making any buys. If your card contains the EMV chip, then the thief or fraudster will not be able to make any card transactions. However, in case the card has no microchip, you must keep a check on the statement and inform the credit card issuer if any amount is deducted from your credit card limit.
Now, when you get the new credit card, ensure to have all credit card details written in a safe place yourself so that if you lose the card again, you have all the crucial details handy yourself.
Note that, may it be your Kotak credit card or any other issuer’s card, the above steps must be followed for all the credit cards.
Here’s how you can prevent card scams
As much as you want it, there are zero checklists to avoid the scam. You can just stay away from these unsuitable events by staying careful regarding your credit card security. Alongside these, you can also do the following:
- Avoid sharing your sensitive card details like card number, CVV, PIN or any card details with anybody.
- Make sure your credit card is swiped just in front of you.
- Ensure to keep a thorough check on your card’s report regularly.
- Get the credit card updated from a traditional one to one with an EMV microchip.
- Instantly consider reporting the card fraud transactions that you may be suspicious of.
- Instantly inform your card issuer or bank that you lost the credit card.
- Have all your card info written in a completely safe place with yourself.
Detection of credit card fraud
The RBI (Reserve Bank of India) guidelines mention that card users have completely no liability in the case of fraudulent transactions or any negligence on the bank’s part. However, if there is any third-party breach, it is the customer’s responsibility to inform the bank regarding the unauthorized transaction within 3 working days to avoid any liabilities in the future. If in case the customer fails to inform the bank regarding the same any time before the seven working days, then the customer will be held responsible for the breach.
To prevent these breaches, card issuers also have started to offer additional security layers on card transactions with the addition of PIN requirements. If your card contains any microprocessor chip, you will require inputting the PIN number to approve the card transaction. This will ensure that your credit card is being utilized by just you. So, even if your credit card is stolen, it will be difficult for it to be used for any unlawful reasons as the thief or fraudster will be unaware of the required PIN for approval. Such safety measures also help to keep your credit score intact in case of credit card theft.