We live in the digital era where increasingly more transactions happen through debit and credit cards. Despite the multi-layer of security measures provided for using the cards, there are instances of fraudulent transactions being reported. The onus ultimately falls on us to take necessary steps to safeguard against such happenings.
A credit card offers the convenience of making purchases big or small without cash and pay for them later.
Having upgraded to EMV safety feature, you may be relieved of any credit card frauds. But, there is a reason to be worried if the card information is stolen or compromised. It can be misused for making online transactions. Hence it is important to know how you can strengthen your safety layer to prevent such frauds.
Setting limits to prevent frauds
Setting self-imposed limits can be beneficial in two ways. First, you can control your urge to spend more, and secondly you can avert a potential credit card fraud.
Each credit card comes with a specified credit limit which the card issuer allocates based on your credit eligibility. To keep your spending under check, you can set your personal credit limit lower than the available credit limit.
After setting your personal credit limit, you will be able to use only what you have set and will be alerted by the card issuer when you get closer to the limit or exceed it. This personalised credit limit can be modified according to the situation. Some cards let you set different limits for each category like international usage, online shopping, dining etc. or allow the primary cardholders to set sub limit on the add-on cards as well.
This feature also helps certainly prevent a credit card fraud. Those with intention to dupe you will not be able to make a purchase more than the set limit.
Strong password
The great Indian digital push has resulted in the number of online transactions go up steeply. If we were to take the data from the RBI, in January 2018 alone India made 1.1 billion transactions. It is most likely that you will be making an online transaction any time soon and you should be prepared for it. A strong password with the combination of letters, numbers and special characters. Moreover, use different passwords for each account, change it periodically, check if you are in a secure environment (both online and offline) and most importantly do not share your password with anyone.
At a POS terminus, pay extra attention while using the credit card as the card number could be stolen or photographed by fraudsters. Do not share any details of your credit card on social media as it is a vulnerable platform for information theft.
Patterns to look out for to prevent credit card fraud:
(The writer is co-founder and CEO of CreditMantri)