Credit cards are a convenient mode of payment. They are easy to carry compared to cash, can help you earn significant rewards, and can convert larger transaction amounts into low-cost EMIs. Unfortunately, fraudulent transactions via credit cards are becoming increasingly common despite their built-in security features such as CVV and pin numbers.

8 ways you can avoid credit card fraud

Avoid unsecured websites

With hundreds of new websites popping up each day, it is quite probable that you don’t notice the security on each web page. But, when you’re using a credit card for online transactions, you must look for an “https” and a padlock symbol before the website’s address. It signifies the site is secure, and your chances of being a victim of phishing decrease.  

Learn to recognize skimmers

To avoid credit card fraud, learning to recognize skimmers is vital. The skimmer is a device that fraudsters often use to steal card information. They do so by hiding the device in places where you might use your card, like fuel pumps and ATMs. For this type of credit card fraud prevention, take a minute before using any card swiping machine; if it looks altered, avoid swiping your card. 

Use social media websites wisely

You can successfully avoid credit card fraud   by being prudent about the information you choose to share online. Credit card thieves look for your personal data like your birthday, pet’s name, and contact information on social media websites as these are common passwords or security questions. Ensure all your account settings are private and your information is not visible to the general public.

Use mobile payment apps

Due to the prevalence of credit card fraud, an increasing number of companies are making use of payment aggregators to help avoid scams. Payment apps like PayPal, Samsung Pay, and Apple Pay use tokenization technology, which lets you pay online or in-store without revealing your account number. As the merchant never collects your credit card number, fraudsters cannot use it to conduct their transactions by stealing your information. If you only use a singular credit card for the majority of your payments, you may want to consider beginning to use a smartphone-based payment service.  

Avoid saving card information on websites

You can avoid credit card fraud by not saving the card information on online stores or payment gateways. While saving the information helps you save time, it also exposes you to a data breach. Keep in mind that the breach can happen even on the most trusted and popular websites, leading to credit card information theft. Hence, make it a habit to type your card number and other information each time you are using the credit card online. Select no if the website asks whether you want to save the credit card information for convenience.

Go for a virtual card number

You can ensure credit card fraud prevention by opting for a virtual credit card number. This number is always different from your actual credit card. Hence, when you use the virtual number to purchase something online, the physical card number is not exposed. This is a safe way to make transactions online, as schemers do not get access to your credit card even if they breach the website’s firewalls. However, not all credit card providers offer this option, so you must ask the bank about this facility beforehand. 

Use password managers

Unfortunately, most people use the same or similar passwords for online banking, credit card accounts, email, and social media websites. Therefore, it becomes quite easy for credit card thieves to gain access to all of your accounts if they get a hold of your password. Luckily, there is a solution to this. Password management software programs help with fraud prevention by using a method known as encryption. This scrambles your data, making it impossible for hackers, fraudsters, and other cyber crooks to use your information illegally. These password managers typically require a master password for you to log in to any website where you have an account. They can also randomly generate complex passwords for each site you visit.    

Regularly check credit reports

Checking your credit card statements allows you to see if it includes a transaction that you do not remember. You can verify this with text notifications received from the credit card issuer on your phone on that exact date. If there is no text either, then you may have been a victim of identity theft. To avoid further credit card fraud, cancel your cards immediately and apply for a new one. Try and recall where or when your credit card information could have gotten stolen. Keep an eye out for any new websites where you made a purchase online or new places where the card was swiped to minimize fraud prevention.