Surviving card frauds
There have been various instances of people being taken for ride by frauds and one needs to be careful while using the card. Arnav Pandya tells more.business Updated: Jun 02, 2008 20:12 IST
Keeping your credit card safe from hackers is becoming tougher by the day. There have been various instances of people being taken for ride by frauds and one needs to be careful while using the card. Here are some ways in which you could be victimised.
Magnetic readers and encoders
These two machines are at the root of many scams that are happening in the card world. In the first case, the magnetic reader is able to read the magnetic strip on a card and the information is captured by it. The encoder then uses this information to put it on another magnetic strip — this can be any device with a magnetic strip.
For example, while using the card at a restaurant or at a petrol pump, the credit card is swiped through the machine and returned to the customer. But, the information gets stored in the magnetic reader. This information can then be put onto another card and misused while the owner of the card is unaware of it.
Another situation is that at the time of receiving a card or the bill on the credit card, one finds that there are already some expenses made on the card.
The owner of the card is unable to understand the expense when he has not used the card yet. The owner of the card might not be at fault here because there are ways in which hackers can generate and obtain credit card numbers. Once they have these numbers, they can use the card on the sly.
Some times it might not be possible to prevent a fraud, but being alert is a must. This can help the owner of the card to take immediate action once fraud is detected and can save him further loss.
He will also be able to know how and when the fraud took place and take suitable action to prevent further such acts.