The most common way to steal another person�s money is credit card fraud. The reason being overwhelming popularity and regular use of the credit card by its owners. A number of
credit card fraud charges have been reported in recent times.
The
Mail Order Telephone Order (MOTO) type account for the bulk of credit card frauds in India. This happens when the transaction is done on the telephone or, the details are given on the application form without actually presenting the card.
By innovative ways, known as skimming of the cards, a new number is embossed on the card number after erasing the information on the magnetic strip. As the card does not work on the swiping machine, the merchant processes the details of the card manually to complete the sale.
Credit Card Fraud Identity theft, which is prevalent in USA, is also catching up fast in India. This type of fraud involves obtaining of goods and services as well as withdrawal of funds by using an unauthorized account by stealing personal information stored on computers, which is normally inaccessible. There are a lot of ways by which someone can get access to your detail credit card information and use it to steal from your account.
The popular way of
credit card fraud on the internet is �Site cloning�. It is resorted in on line transaction. The site clone created looks like the original site. The credit card details of na�ve customers are obtained through these sites. Customers are also lured to give the card details in through false merchant sites which offer cheap goods.
Precautions which helps against credit card fraud is listed as follows:- Ensure that you have received your credit card in sealed condition.
- As soon as you receive your card, sign on its back.
- Check your cards periodically to ensure that none are missing
- Regularly monitor your account either from call centers or on the internet.
- Subscribe to email/mobile alerts to monitor your card usage.
- Ensure that wherever the card is presented it is swiped in your presence.
- Keep track of your transactions, when you are traveling abroad.
- Preserve the PIN and the card account number in a confidential place. .
- PIN number should be memorized.
- All records such as copies of receipts, airline tickets, travel itineraries, etc., should be destroyed.
- Never share PIN with anyone.
- Cancel all inactive accounts
Report credit card fraud or for
lost/stolen cards immediately to the issuer.
The IT Act and Rules 2000, provide penalties for hacking of computer systems as a
credit card fraud help to the masses. The RBI has formed the CIBIL in collaboration with Dun and Bradstreet who will maintain the records of all wanting to avail of finance from credit card companies and banks in India.