Have you been on the receiving end of a fraudulent transaction?
Research has shown that the rate of credit card fraud was 58.3 cents per $1,000 in 2020! Elson Goh from EG Financial Services, joined Mike to tell us about the different types of credit card fraud and how to prevent fraudulent transactions.
Elson joked with his friend, who was hit with almost $10 000 of unauthorised spending. “If it happened to me I’m sure I could track down the perps.” But soon after, Elson’s bank informed him they detected and blocked some unusual transactions. “There were several transactions going through at the same time and that triggered the protocols.” He had to make several phone calls to cancel the card and all his direct debits had to be renewed.
Types of Credit Card Fraud
There a 3 types of credit card fraud. Counterfeit or Skimming, occurs when the number has been taken from a device or machine. Fraud that occurs due to lost or stolen cards. Skimming, hacking, and phishing are categorised as ‘not-present‘ fraud, the most common. This can occur when a merchant’s data has been compromised, leaking credit card info. It can also happen if you give your details to a cyber-criminal.
How to Prevent Credit Card Fraud
- Check your credit card transactions regularly
- Always call the bank or merchant from their direct line. Not via links in emails or SMS
- Purchase from large retailers (Watch out for the too good to be true buys)
- Look for closed padlock or key and start with ‘https’
- Consider having a low limit Credit Card Secondary card for large transaction
- Don’t give your information to suspicious people and change your passwords
Have you been on the receiving end of a fraudulent transaction? Let us know by texting or messaging us on socials. Listen to the full chat below!