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4 Tips for Singaporean to Avoid Credit Card Frauds

Author: Sebastian Taylor
by Sebastian Taylor
Posted: Jul 04, 2017

Credit cards can be very beneficial when used correctly. Right from boosting one’s savings to improving one’s credit score, the propensity for a credit card to be advantageous is quite high. But on the flipside, credit cards have a capacity to do harm as well. Not only does mismanagement lead to debt but the credit card itself can be vulnerable to fraud. Fraudsters can not only charge unauthorized transactions to stolen cards but can manage to get all the required credit card information without the need for stealing the credit card. Such charges will end up being borne by the cardholder and it will be quite a hassle having to dispute these. Below are the major type of frauds that can take place, keep on mind and enjoy applying for your new credit card in Singapore.

Major Types of Credit Card Frauds

  • Credit card swaps: This practice was a common occurrence at bars and restaurants. When the cardholder pays for the bill, the card is swiped for the amount but some other expired credit card is wrapped in a receipt and handed over to the cardholder. If caught, the fraudster would chalk it up to a genuine mistake but if not, it could be days before the cardholder realizes that they no longer have their card. Even a few hours of a missing card going unnoticed could allow fraudsters to rack up plenty of transactions against the card and the longer it takes for the cardholder to spot the scam, the more liable they will be for the fraudulent transactions. After all the bank would claim that the transactions were a result of the cardholder’s negligence.? Skimming: Another popular choice for fraudsters at food and beverage outlets, skimming involves reading the credit card information using an electronic machine prior to charging the card for the actual transaction amount. The act of skimming takes place when the card is removed from the cardholder’s view. The card is then returned to the cardholder but the data stored allows fraudsters to make online purchases without requiring the card itself. The information stored can also be used to make a duplicate card.? Phishing: This type of fraud is usually carried out through emails. Cardholders would receive emails that pretend to be from the bank or the credit card company of the cardholder. These emails include images, logos and signatures to make it look as realistic as possible. The email would state that there was some suspicious activity detected on their credit card and would request for important information such as a credit card PIN or CVV number. Links will be provided on the email which upon clicking would lead to a third party site where the information is collected or would install a spyware that records information entered on the computer. Another version of phishing is done through telephonic calls where the caller pretends to be from the bank asking you for credit card info to verify that you indeed are the cardholder. Again such information given out is used to make illegal transactions.? Clone websites: These websites are made to look very close to the actual bank websites or online shopping websites but record the data entered. Fraudsters can also use such clone sites to either collect credit card info directly from the web page or install spyware that records any information entered on the computer.

Cardholders can prevent all these attacks from happening through simple presence of mind. Always ensure that you accompany your credit card to the billing station and never click on links in emails that lead you to other websites. Banks will never call customers seeking such vital information and the only time cardholders should give out such information is if the cardholder themselves have initiated the call. When making online payments always check if the website is a secure website. This can be told by looking for a symbol of a green lock on the address bar.

About the Author

Sebastian Taylor is a young and dynamic digital marketing professional with years of experience in content writing he is currently working with in a startup Fin-tech head quarters in Singapore branch.

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Author: Sebastian Taylor

Sebastian Taylor

Member since: Jul 04, 2017
Published articles: 7

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