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Debit and credit card fraud

Credit cards are useful for businesses and shoppers, and most users support an extension to the limit of contactless cards to £100. Still, the cases of scams have also increased as they can be skimmed and cloned or copied with a swipe machine that can duplicate the original. 

The contactless payment system allows users to make purchases without filling in the PIN for weekly food buying or petrol filling. Nonetheless, its maximum limit was increased to £30, and it dominated most of the lockdown activities. 

However, the transactions can lead to cheating when stolen or lost and used without permission.

How Does It Happen?

  • The trickster uses different techniques to get details. For example, they may see its details, like the code and pins, while using it or withdrawing cash. 

  • Also, they can use it to create a clone by skimming the data on it. It is also vulnerable to cash machine transactions, where you must protect the PIN while entering the keys and check your balance before/after making any withdrawals. 

  • Those who get it can see details like date of birth, holder name and address from the online database.

  • If personal information related to the card is stolen, they can withdraw the available funds or use it to buy items using the identification of another person. 

How To Protect Yourself?

  • Take care of your cards; never hand over personal documents to others while paying through a contactless machine. 

  • Do not disclose your bank information to others; keep your statements, receipts and records safe.

  • Always sign in new ones immediately upon arrival and cut old ones through the magnetic strips and the chips once expired or cancelled.

  • Set up alerts for all payments made and frequently change passwords and PINs to avoid hacking.

  • Be careful of the calls from your bank or police, who try to get in touch and ask for your PIN. Never answer calls or messages seeking any such information. 

  • Do not use public Wi-Fi to conduct any fund transaction. Always log out using a public computer ( or device), and keep track of all the messages and responses. Do not share information like date of birth, lost driving license, passport, or other personal details on social media. 

How To Spot It?

  • If your card is rejected when you try to withdraw money, you are sure you have funds in your account.

  • If you find unusual activities in your statement, like online purchases, you did not order. 

  • If you get a message regarding investment, you did not approve.

  • Immediately get in touch with the bank and inform them about it. 

In case of fraud, the financial organisation can refund your loss. But, in some cases, the customer is held liable, like when you report after a year about the activity or if you authorise the transaction or you acted/participated in the activity and did not provide the right information or tried to hide from the bank. 

You may not get a refund when you acted negligently and did not protect your ID. However, if you suspect fraud, report it to the regulatory authorities. Also, call your provider and explain it, mostly when contacting you through unexpected emails and letters.

Date Published: Sep 12, 2023

Types of fraud

A-Z of fraud

To help understand which fraud you've been affected by, we've categorised them into an alphabetical list.

What is fraud and cyber crime?

Cybercrimes can be of two types. First, it can be cyber dependent, where the fraudsters use online devices to convince the victim to accept their offers.

Advance fee fraud

If you are trying to get a loan for a house or a car, they ask to meet the provider to get the financing arrangement and pay the finder's fee in advance.

Corporate fraud

Corporate frauds can be complicated, committed either by the firm or an individual. Nevertheless, it mostly involves cheating where the employee or the firm.

Individual fraud

There are many types of individual frauds related to advance fees, investments, insurance brokers, bogus tradespeople, Ponzi schemes, pension liberation.

Online fraud

Hence the number of cases of online fraud is increasing each year, and most such cases include – account takeover, direct frauds, or scams related domain names.

Identity fraud and identity theft

The criminal uses the stolen identity of another person living or deceased to conduct unlawful activities like obtaining goods or services in another's name.

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