Credit Card


Credit card fraud is on the rise — and so are the different types of credit card scams. Credit card scammers are getting smarter — they use all sorts of tricks, from phony phone calls and emails to credit card skimmers and Wi-Fi hotspots— to obtain your personal information. You could be a victim of a credit card scam and not even know it.


Credit card fraud happens when somebody steals your credit card number and alternative information to spend on your credit card account. This happens either from a stolen wallet or through an unsecured net connection, hacking, etc. This can lead to full-blown identity theft and may create havoc on your credit score, credit report, personal finances and life. When we think of credit card frauds, the first thing that comes to our mind is stealing the credit card and then using them for buying products. However, according to RCMP, around 23% of credit card frauds happen in this way. 37% of the credit card frauds happen due to counterfeit card use. Criminals make use of the latest technologies to “skim” the data stored on the credit card's magnetic strip. Phishing scams are also other methods adopted by the criminals where fraudulent e-mails and websites are used to deceive the credit card holders and reveal their credit card and other personal and financial details.


Worldwide, there was a 23% increase in credit card fraud events compared to last year. India was ranked among the top 5 countries with regard to credit card fraud, with more than one third of the people saying they had been scammed, according to the 2016 Global Consumer Fraud Report published by payments technology company ACI Worldwide.Lack of awareness, outdated ATMs and less-secure cards make Indians an easy target for criminal gangs. Hence credit card fraud and Identity theft is rising in India.


Types of Credit Card Frauds

  • Stolen Cards: Stolen credit cards remain usable and allow criminals to purchase any products or services until and unless credit card holders call up the card users and block their cards.
  • Phishing Mails: Phishing mails are one of the most well-known methods of stealing credit card information, where mails are sent to the credit card holders asking to provide information on the cards. Phones are also used to collect credit card information from the card holders
  • Skimming : Skimming is stealing credit card information through various means including ‘insiders’ (dishonest employees of the merchant) or small electronic devices are used to read the information stored in the magnetic tape of the credit cards. Many times photocopies of the receipts are also used to steal the information.
  • Carding: Criminals provide the information of the card in the website that deal with real-time transaction processing. If the information is accepted, it is understood that the information are correct
  • Application Fraud: Application fraud is the scam during the application process. Here fake or stolen data is used to open an account in the name of others. Utility bills, bank statements are used to open fake accounts.

Between April and December last year, nearly 24,000 fraud cases related to credit, debit cards and internet banking were registered in India, Mint reported in April 2018, citing Reserve Bank of India (RBI) data. In Mumbai alone, cases related to credit and debit card fraud jumped 42% in 2017, the Hindustan Times has reported.