Home Tech Increasing threats of Credit card scams and how to avoid them

Increasing threats of Credit card scams and how to avoid them

by Ganesh Kolekar
Increasing threats of Credit card scams and how to avoid them

Credit card scams are not new, but it has accelerated in the post-pandemic period. When everyone was opting for contactless transactions, scammers found it as an excellent opportunity to serve their intention of stealing money. Therefore it has become important for credit card holders to educate themselves about the tactics these scammers utilize to garner money through various types of Credit card scams.

Here are some things a credit card user should keep in mind,

  • Legitimate online business impersonation scams
  • Phishing scams
  • Overcharge scams
  • Credit card interest rate reduction scams
  • Debt settlement scams
  • Government authority impersonation scams
  • Unsecured hotspot scams
  • Skimming scams

Legitimate online business impersonation scams:

Impersonation scams take place when scammers try to trick people pretending to be someone else. Credit card scammers often counterfeit existing legitimate online businesses to defraud people. They establish their own website that resembles the website of the legitimate online business they are pretending to be. Not only do they copy their domain name, but they also mimic the design of the page in order to trick people. They generally garner the credit card information of people who believe they are a legitimate business, making a purchase by providing their card details. After collecting their private information and credit card details, they try to get access to their account and eventually steal their money.

Phishing scams:

We consider it a phishing scam when scammers try to perpetrate mischief with the help of emails. The emails scammers send can come in many forms. Sometimes they propose exciting offers where you need to pay via credit card in order to redeem it, and sometimes they claim that your accounts have been compromised and ask for your credit card details in order to safeguard it. One needs to be aware that they shouldn’t be sharing information in both cases, especially when the email is unsolicited. Remember that these are the scammers’ ways to steal your money.

Overcharge scams:

Overcharge scams have become a popular strategy among scammers whose primary targets are the people who run a business online. While trading or making purchases, scammers contact their provider, claiming to have overpaid them. Then they ask them to return the money. They even arrange fake proofs like edited screenshots etc. and send them to garner their trust.

Credit card interest rate reduction scams:

Some scammers who perpetrate credit card scams contact the customers claiming that they can help reduce the interest rate on their credit cards. They also claim to have a good relationship with the bank that the victim has an account in and thus can request the bank to reduce the amount from their interest. It is considered a very ingenious method, as debt-ridden people are very likely to fall for this strategy. So it is advisable to be wary of these unsolicited calls or messages which make these claims.

Debt settlement scams:

There are many companies and organizations which help people to settle their debts. Unfortunately, scammers find this as an opportunity to perpetrate forgery. Similar to credit card interest rate reduction scams, scammers here contact their victims and propose an offer to help them settle their debts. They claim that they have helped many debt-ridden people before and claim upfront payments for their services. Once scammers receive the money, they disappear without any delay.

Government authority impersonation scams:

Some acquisitive scammers choose to impersonate government authorities to defraud people as they believe that people trust the government easily. They call them, pretending to be contacting a government authority, and try to convince them that their account can get compromised anytime if they do not take action. They further ask them to hand over their credit card-related information for safekeeping. Sometimes they offer them money asserting that they have won it somehow, and ask for their information so they can transfer the funds to their account.

Unsecured hotspot scams:

Be careful while using public hotspots or someone’s WiFi connection when you do not know them personally. Scammers are coming up with new strategies every day, and this method is one of them. Some ingenious scammers are able to take control of your phone when your phone is connected to their hotspot network. Through this technique, scammers garner all the information they need to get access to their targets’ accounts, and then they eventually steal their money.

Skimming scams:

Skimming scams occur when credit card scammers install small electronic devices to the card readers, thereby committing forgery. These electronic devices, named Skimmers, garner information about the cards that get swiped into the card reader. One needs to be very careful of Skimming scams as it is nearly impossible to detect the fraudulent device inserted in the card reading machines.

Conclusion:

To stay ahead of these scams, one needs to deal with them with skepticism. Always verify before trusting them with your hard-earned money, as a zero-trust approach can serve as a great antidote to these problems. Moreover, independent research helps people to understand the nature of scams and thus allows people to prevent scammers from committing forgery. Educate yourself about the red flags, and look out for them while using credit cards. But if you still get scammed after taking all the precautions, never forget that there are many companies that people can readily find on the internet that help people to recover funds lost in scams. Therefore, you can easily resort to them and seek their help.

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