LEARN | LEARN: CREDIT CARDS | CREDIT CARD INSIGHTS | What Is Credit Card Fraud?

What is Credit Card Fraud? How do I avoid Credit Card Fraud?

A thief doesn’t need to steal your wallet to get a hold of your credit card details. Card cloning is becoming more and more common form of credit card fraud.

How Does Credit Card Fraud Happen?

One method that thieves use to steal credit card details is cloning or skimming. A credit card is cloned by copying the magnetic strip found on the back of the card, using a device that is illegally attached to a tampered terminal. More often than not, the retailer doesn’t even know about the fraud. The copied data is then attached to phony cards and used until the card owner notices something is wrong.

44 percent of all Canadian credit card fraud is a result of counterfeiting. On average, charges from counterfeiting amount to $1,241 per stolen card. Credit card fraud that is a result of loss or theft totals 21 percent, with average charges amounting to $700 per account. Source: RCMP report.

Thieves can also steal your credit card details by accessing the payment information you enter on websites with no or poor security protection provisions in place.

How to Avoid Credit Card Fraud

Check Your Statement

Frequently check your credit card statement to make sure there are no unauthorized charges.

Protect Your PIN

It is difficult for frauds to use your card if they don’t know your PIN. Protect your PIN.

Secure Online Shopping

Before you provide your credit card information on a website, make sure the site is secure. The URL should start with ‘https:’ not just ‘http:’. Also read the companies privacy and security policy.

Five Ways to Protect Your PIN from Credit Card Fraud

Cover your PIN when entering it in a public space
Memorize your PIN – don’t put the number on a piece of paper in your wallet
Don’t share your number with anyone
Avoid using easy or obvious PINs
Don’t use the same PIN for every card.

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CREDIT CARD INSIGHTS : What Is Credit Card Fraud?