We have seen numerous articles in newspapers detailing how customers are becoming victims of credit
card Fraud. Today I will discuss some of the Myths about Credit card security and some basic rules we ould follow to prevent credit card theft
MYTH 1 – No One Knows my CVV so I am Secure:
“CVV is not always mandatory on all websites to make an online transaction.”
You can make a online transaction on websites out of India with only the Credit Card number, the expiry date and obviously the name of the credit card holder.
Myth 2: My Credit Card is safe as no one knows my Password.
RBI has ensured that as a last layer of protection all card holders will be asked an OTP (One Time Pin) or a password.
This however is limited to India, for a merchant outside India this additional step is not compulsory.
This means that someone having every other detail of your credit card other than your PIN can also do transactions
Make sure you follow the below steps
Myth 3: Signature on the back of the card – Replace it with SEE ID
Though it is mandatory for every merchant to check the signature, very few of them actually do it. This approach obviously has two flaws: First the person who stole the card has plenty of time to look at the signature and learn how to forge it. Secondly the security of this approach rely on the fact that cashiers are able to detect forged signature in a blink of an eye and under bad lighting conditions … So instead of hoping that every cashiers is an expert in graphology it is actually better to ask them to compare the credit card name with a valid ID by writing the mention SEE ID on the back of the card.
Some other Basic Ruler to prevent Fraud
• Don’t leave your credit cars in your vehicle. A very high proportion of credit cards are stolen from motor vehicles.
• Always check your card when returned to you after a purchase. Make sure it is your card.
• When traveling, carry your cards with you or make sure they are in a secure location.
• Report lost or stolen cards immediately. Most fraudulent use of cards takes place within days of their being lost or stolen.
• Put up the SEE ID on the back of the card as soon as you receive it. . Destroy unwanted cards so no one else can use them.
• While making any online transaction, make sure the website starts with https://
• Always check your monthly statement. Make sure the charges are yours. Report them to your card company if the entry is not yours.
• Never give your card number over the phone unless you are dealing with a reputable company.
The only time you should give it is when you have called to place an order.
• Use Virtual Cards for online transactions.
Posted on December 6, 2013 in Credit Cards