Continuous technological advancements help make people’s daily lives easier. However, due to these developments, fraudsters gain access to new ways of conducting cyber-fraud. Although companies work endlessly to create new safety features to stop cyber criminals from hacking their systems, a new style of scam or hacking takes its place. Credit card fraud is one of the most rampant types of scams done by con artists.
Owning a credit card is a huge milestone especially as a working adult since it’s not easy to qualify for one. If you’re lucky, you can get a supplementary card from a principal cardholder like your parents. However, that’s not always the case for most people.
When you do qualify for one you need to be disciplined in making purchases and make sure to track your transactions. Overspending will put you in huge debt, and not tracking transactions is susceptible to fraudsters taking advantage of your lack of cautiousness.
When you first qualify for a credit card you usually get a lower limit which gradually increases over time at the bank’s discretion. But keep in mind that even if you have a low credit limit, let’s say around ₱25,000-₱30,000 (over $400-$500), it would still catch the attention of fraudsters. Mine was around that range when my credit card got hacked and was used to purchase a subscription on an online streaming platform.
What Should You Do When Your Credit Card Has Been Compromised?
Finding out that your credit card has been used for unauthorized transactions can be nerve-racking. You start to think about all these scenarios where and how your account got compromised. But you need to keep yourself calm. Since time is of the essence, you need to act fast to avoid further damage. The following are things you can do when this has happened to you:
1. Call your bank immediately
After finding out about the incident make sure to call your bank or at least their customer service hotline as soon as possible to report it. From there you can ask to have your current credit card blocked to avoid further misuse and request for a credit card replacement (with a new account number) to be delivered to you. This is usually free of charge.
Also, make sure you know the transactions you made so you can explain it more clearly and the customer representative would have a better grasp of the situation. The representative will then send you a dispute form to your email for you to fill out and the email you will have to send it to. This would take a few days as your bank would have to investigate the dispute. They would contact you after to let you know the status of your request.
2. Check your transaction history
Check your credit card statement and list down all the unauthorized charges that were charged to your account in the dispute form. Also, check your account online to see if there are any additional transactions that were not added to your credit card statement yet. This was something I haven’t set up before so I was not able to regularly monitor my account. Needless to say, it was a lesson learned the hard way.
3. Change password
To help avoid any further damage, make sure to change your passwords especially if you have multiple bank accounts. Not just your password for your bank account, but change your email password and other accounts that contain personal data as well. Also, change your security questions while you’re at it as it’s likely to be compromised as well. It’s better to be safe than sorry!
Tips to Help Protect Yourself and Avoid Being a Victim of Credit Card Fraud
Being more cautious is the best thing you can do to protect yourself from fraudsters. Here are some tips that can help you whether you’ve already been a victim or are just being extra careful.
1. Only shop or pay for services online through secure sites
Have you noticed that lock icon found on the web address bar? That icon means that the connection to the website is secure. You could also click on it to view the site’s information. The site’s URL would also have “HTTPS” at the beginning with “S” standing for secure as opposed to URLs that are “HTTP” only. When a website has this icon or HTTPS, the information that you enter while in transit will be encrypted so hackers can’t view or steal it.
However, just because a website has a lock icon or HTTPS, doesn’t mean the website is safe. The owner of a phishing website can simply get an SSL certificate which enables them to have the lock icon and HTTPS in the URL. Aside from having a secure site, there are different things you need to check to ensure that the website is safe. This includes making sure that the website is a legitimate site of the company and has a good web layout. To have a better understanding and what other things you need to check, read this article by Norton entitled “How to know if a website is safe: 10 steps to verify secure sites”.
2. Only shop or pay for services through well-known physical stores
When making purchases or paying services to a physical shop make sure that the business is trustworthy or well-known. Although these companies are still susceptible to security threats, they are more likely to have a better security defense against hackers. Also, stay away from dubious-looking businesses and spot red flags that indicate it isn’t trustworthy. But if you need to purchase something from that store, try to pay in cash instead.
3. Regularly monitor your credit card account online
Online or mobile banking allows you to monitor your account anytime you want. It shows you transactions recently made under your account so you can check if there were any unauthorized purchases. Keep in mind that it’s not usually updated in real-time as the bank’s system may need a day or two to have it posted. But at least you’d have a faster way of monitoring it regularly instead of waiting for your next billing statement to arrive.
If you haven’t set up your online banking yet you can start by checking your bank’s website and search the instructions on how to set it up. You’ll need your account number to set up an online account so better keep that handy.
4. Never save your account details on any online merchant
Even if you determine that the website is safe and secure, never save your account details online. Storing your payment information online can spell disaster as it will put you at a very high risk of getting this data stolen and for criminals to take advantage to make unauthorized purchases.
5. Set up credit card alerts
Credit card alerts are another great way to stay on top of your finances. It helps you monitor your card activity and get notified or alerts when your card is being used. You can set it up to notify you when purchases are above a certain amount or simply whenever there are purchases made regardless of the amount. This allows you to be notified immediately and be able to act faster in reporting unauthorized purchases to your issuing bank.
6. Use a virtual credit card
Virtual credit cards give an added security when making purchases online as it gives you a different credit card number from your principal credit card with an adjustable limit. It can help you mask your actual account number and avoid fraudsters from accessing your account and using it in making unauthorized purchases. You can go to your local bank and ask if they offer this. But for reference, here are some articles I found online for two of the top banks here in the Philippines: if you’re a BDO credit cardholder read this article, if you’re a BPI credit cardholder check this article.
The Bottom Line
Everyone is susceptible to being a victim of credit card fraud, but being more cautious can help decrease your chances of being one of them. Regularly monitoring your accounts, being wary in transacting online or offline, and making sure your personal information is secure can help protect yourself from such scenarios. If you do fall victim to these schemes, make sure to report it immediately to your issuing bank, and to your local law enforcement authorities if necessary.
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Disclaimer: The owner/s of Striving Millennial are not financial experts. Information added here is based on their own experience and is not a substitute for professional financial services or advice. Call your local bank for further discussion.
Disclosure: This is not a sponsored post. Brands mentioned here are not affiliated with Striving Millennial and were added for informational purposes only.