Posted by TrailBlazer at Thursday, October 30, 2008
How I got a huge credit card statement bill for items that I never purchased ?
One of the worst things that can happen to a credit card owner is to be scammed online. It may take a while for you to notice it, and by then, the credit card will be totally maxed out, leaving you in a deep hole. There are many other ways to get into trouble with Credit Card if you use it carelessly or without proper vigilance. They following are the most horrendous stories about Credit Card Scams or Credit Card Frauds.
Credit Card Phishing
Receiving an e-mail is the most common way that people get caught out. The e-mails look so convincing, which is why so many people get scammed. These are called "phishing" scams. The e-mails may have a website link that, when you click it, will take you to a fake website that the scammer has prepared.
Watch Places : Online Transactions, Suspicious Emails
Preventive Measures : Legitimate companies will never ask you for any personal information, especially not through an e-mail. Never reply to emails or use links in emails. Use security software on your PC to block ‘spam’ emails. Web browsers like Mozilla Firefox, Opera ...etc have features which tells you the website address is fraudalent or not. Use Secured Websites for Online Transactions.
Credit Card Cloning
The card details are copied on to counterfeit cards, complete with security holograms markings. The fraudster start to use it at real customer`s expense.
Watch Places : Any place.
Preventive Measures : Dont give your Credit Card to anyone. Make sure that you kept it safe in a locker while you are not using it.
Credit Card Skimming
Skimming describe ways in which money can be stolen off your credit card by attaching it to cash machines and capture credit card details. These recruits are given a pocket-size device with a scanning slot which looks like a pager and can be even worn on a belt. This contraption is called a skimmer.
Watch Places : Petrol Stations, Bars and Restaurants.
Preventive Measures : Avoid using Credit Cards in suspicious places. Make a small investigation in cash machine which you feel doubtful.
Call Centre Fraud
The Financial Services Authority (the industry regulator) has said that it is essential for banks to have proper vetting procedures for recruiting staff and for the security of data, especially when it is being held offshore. This is sensible advice as, according to experts, most fraud is either committed by organised criminals or by people working inside companies.
Watch Places : Sharing Credit Card information through Telephone.
Preventive Measures : Banks shouldn't ask you to reveal complete passwords or account details over the phone. so use your common sense whenever you're asked for security or account details.
The method in which a fraudster obtains a PIN number by standing near a cardholder at an ATM machine. In some cases, the scam will occur after the PIN has been entered, with the thief distracting the person withdrawing money.
Watch Places : Any place where you want to enter the Credit Card PIN.
Preventve Measures : Avoid writing down the PIN number in papers. Avoid using same PIN Number for multiple Credit Cards.
Other Kinds of Credit Card Scams are :
This occurs when criminals use stolen or fake documents to open an account in someone else's name. Criminals may try to steal documents such as utility bills and bank statements to build up useful personal information. Alternatively, they may create counterfeit documents.
Carding is a term used for a process to verify the validity of stolen card data. The thief presents the card information on a website that has real-time transaction processing. If the card is processed successfully, the thief knows that the card is still good.
A website known to be susceptible to carding is known as a cardable website. Nowadays, carding is more typically used to verify credit card data obtained directly from the victims by skimming or phishing.
"Keep your Credit Card Safe. Use them Carefully and with a Vigilant mind."