I received a call recently from a close friend of mine in a hurried voice saying that someone had purchased a jewelry from a famous jewelers in Bangalore for Rs.1,15,000 using his credit card. That too, when he is having his card safely in his purse. I consoled him and asked him to talk to the bank immediately. Even though he was not charged by the bank after they confirmed that the purchase was not done by him, the mental torture he undergone was unbearable.
How can we protect our credit cards from such frauds?
Is there really a way to escape from credit card cyber attacks?
Will RBI and banks do something to stop it?
Yes, RBI has implemented key measures to enhance better security on credit and debit cards.
– for customers to block the card
– for banks to check with the customer if they witness any
Ok, Banks are taking actions. Does it mean that I am 100% safe from credit card crimes?
Unfortunately, the answer is no. You are not 100% protected just by banks implementing safety measures in their systems.
It is like locking your home safely when you go out. Will you keep the house doors open while going out just because you have police patrolling the area? No, right. Likewise, you must take responsibility to protect yourself from such crimes. You must take precautionary measures while using ATM cum debit cards and credit cards online and offline.
Minimize the chances of being a victim of ATM cum debit card card theft. What should you do while using your cards in ATM machines?
Carelessly used pin numbers are the reasons people become a victim of debit card crimes. What can be done to protect the pin?
How to protect your credit and debit cards while using in retail outlets, shops, restaurants or petrol pumps?
Most of the times the employees in the restaurants or petrol pumps join hands with the group to commit such cyber crimes. They swipe your card in the skimming machines where the details are recorded to make duplicate cards.
How to protect your credit and debit cards while using online?
Online purchases also lead to credit card thefts.
If you are changing the address, inform your bank immediately, so that any communication from the bank does not reach wrong hands. Never use your credit or debit card with or without your photo as your id proof. Be it through emails or in person, do not give your bank details, credit card numbers along with passwords to anyone even they identify themselves as bank employee.
Precaution is better than cure. The above discussed precautions will save you from credit card frauds if practiced.
The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He Can be reached at email@example.com