Sameer (name changed) is a businessman who has always been prudent with his money. Whenever he used his credit card, he ensured that he would pay his dues back immediately.
He also made sure that he never used his credit card for expensive purchases, using cash instead. Imagine his unpleasant surprise, when he got a credit card bill showing that he had used up his entire credit limit.
On checking his statement, he saw purchases that he had never made. He went through hell trying to making payments over those purchases. Apparently, Sameer was the victim of credit card fraud.
Credit card frauds are on the rise these days. The credit card number, the Card Verification Value (CVV) or the Card Security Code (CSC), date of birth, credit card limit, residential address (stored on your card's magnetic tape) is all that is needed for someone to misuse your credit card.
Being vigilant while using your credit card is the only way of preventing fraud. Here are some tips.
Card Verification Value (CVV) or the Card Security Code (CSC)
The CSC or CVV number is a security feature for credit or debit card transactions, giving increased protection against credit card fraud. It is not embossed like the card number, and is always a group of numbers printed on the back signature panel of the card.
This provides a level of protection to the bank/card holder, in that a corrupt merchant cannot simply capture the magnetic stripe details of a card and use them later for 'card not present' purchases over the phone, mail order or Internet.
Whenever you use your card, always ensure that the transaction is completed in front of you and that no details are written down by the merchant. Do not provide photocopies of both sides of the credit card to anyone.
The card verification value (CVV) which is required for online transactions is printed on the reverse of the card. Anyone can use the card for online purchases if the information is available with them.
Using cards online
When using your credit cards for making purchases online:
Ensure that Web site is a secure site. This can be done by checking whether the site is secured by a reputable net authentication agency like VeriSign.
Do not click on links in e-mail seeking details of your account; they could be phishing e-mails from fraudsters. Most reputed companies will ask you to visit their Web site directly.
Do not give out your credit card details on unknown or suspicious Web sites.
Stolen card and suspicious transactions
The first and foremost thing to do, after you have confirmed that you have lost your wallet or card or have seen suspicious transactions on your credit card statement, is to call up the bank's 24-hour call centre and deactivate the card or inform the customer service representative about the suspicious transactions.
The representative will help you file a complaint