In recent times, credit card scam has been one of the most rampant fraudulent activities noted as per the FTC report. The number of cases related to credit card frauds has leapt by 104% from the first quarter of 2019 to the first quarter of 2020. In 2019, there were around 650,752 cases of identity fraud noted.
Nonetheless, while the number of frauds is certainly worrying, cardholders can easily protect themselves from such occurrences. To financially safeguard yourself from the financial liabilities arising out of identity theft and credit card scams, you can opt for a card protection plan. However, before delving further into such plans, it is crucial to learn more about the common types of credit card frauds.
Common credit card frauds
These frauds are commonplace when credit cards are stolen physically or virtually hacked. Individuals can prepare themselves against these attacks that are mentioned below:
- Hacking personal account-
If an email account is hacked, hackers can make unauthorised transfers. Hackers mainly target businesses that send money through wire transfer. The first thing that can be done after an account gets hacked is to run an end-to-end antivirus scan.
- Skimming credit cards-
While skimming credit cards, hackers use a small device to steal information in an otherwise legal credit or debit card transaction. Individuals can monitor their credit card accounts online at least once a week to avoid this type of frauds.
- Identity theft –
Identity theft is common when an individual happens to misplace his/her credit card, or it is stolen. The card can then be used fraudulently to make transactions, which then reflects on an individual’s statement. To minimise the liabilities arising from such instances, individuals can opt for an identity assure insurance plan extended by reliable financial institutions. This wallet insurance policy can be extremely effective in safeguarding one’s finances.
- Providing fake links on the website–
One of the easiest ways to hack information from a user is to send them a link, by clicking which they are directed to a fraudulent website. Users should restrain from clicking these suspicious links that can leak their sensitive information.
There are several other fraudulent activities like phishing, spoofing etc. which cardholders must be aware of, to safeguard their digital transactions. Further, with time, the techniques used by scammers are evolving. It is, thus, crucial to stay updated about these methods and undertake appropriate measures to prevent them.
Individuals can protect their finances by using multi-factor authentication, security software, anti-malware software, etc.
How to protect your card?
While there are no iron-clad protective measures to avoid these malicious activities, consumers can restrict their liabilities and avoid falling prey to them by availing a credit card protection plan. In this regard, the Bajaj Finserv Wallet Care policy under Pocket Insurance & Subscriptions can be extremely helpful in reducing the risks to one’s finances. This insurance policy is highly effective and offers comprehensive coverage for the most common types of fraudulent activities.
Customers can avail financial coverage of up to Rs.2 lakh under this card protection plan. Further, the NBFC’s services are accessible 24×7 and can assist policyholders in blocking all their cards with just one phone call, in case of theft or misplacement.
Apart from this, individuals can also look into other such plans like a cyber security cover that can help mitigate the risks arising from activities like tele-phishing, unauthorised transactions, and such other payment frauds.
With such credit card insurance policies in place, one can alleviate the risks of incurring financial losses through credit card frauds to quite an extent. It is also crucial to remain alert while making transactions or initiating online payments to safeguard one’s finances against credit card frauds.
