With the rapid increase in bank fraud, it is of utmost importance to learn how to prevent credit card fraud and other frauds.
According to Forbes, card fraud will exceed $12 billion by 2020. This figure is for all sorts of cards and includes, credit, debit, and prepaid cards.
While this figure looks big it is nothing when compared to all the card transactions that take place in the US.
Just looking at the volume this figure is also still lower than the fraud peaks of the 1970s.
Nonetheless, it appears that identity fraud and cash machine frauds are rising very fast.
Apparently, Cardholder not present is the biggest fraud category.
It is these frauds that we will focus on today so that we are not defrauded of our valuable cash and resources.
How To Prevent Credit Card Fraud and Bank frauds
Below are some tips and suggestions to help you in preventing these frauds.
1. Always keep your receipts
One of the common-sense ways of making sure that you are alert to fraud attempts is to keep your receipts and compare them against your statements.
If you pick any suspicious transactions you need to contact your bank or credit card company immediately.
Other receipts that we usually ignore are the digital receipts or online-only accounts.
If that is your situation then make sure you stop that and start checking these online accounts regularly.
2. Always shred or burn your statements and receipts when you are done with them.
Did you know that the easiest way to get people’s personal details and bank details is to rummage through their refuse bin?
This is because most of us don’t take the time to shred completely our statements and sensitive information when we throw it away.
Rummaging through refuse bins you can get peoples’ addresses, bank account details, letters from banks and other personal stuff that we just throw away carelessly.
I would, therefore, urge all of us to shred completely or if possible burn all receipts and statements when you are done with them.
3. Don’t disclose your personal details to strangers calling you or emailing you
Be extra careful about the information you disclose when you receive a call. Fraudsters use these to get information that may assist them to perpetrate frauds.
If not sure it is better to tell the caller that you will call the bank or credit company yourself.
And even much better you can go in person to the bank if possible.
4. Check your credit reports for any suspicious stuff
Credit card reports will sometimes show your accounts especially those that are in arrears. If anyone has opened an account in your name you would most likely find it in your credit report.
You, therefore, need to take advantage of this and use it as a tool for such fraudulent activities.
It is one of the ways of identifying quickly if any of your accounts are not in good order. You can then sort it out before the penalties pile up.
5. When you move houses redirect your mail immediately to avoid loss of sensitive statements.
If you are like me then maybe you have been in a situation where you move houses and forget to redirect your mail.
You then end up in a situation where your bank statement is in the hands of strangers leaving you vulnerable.
Even if you receive your statement online you will still have some sensitive information that you don’t want strangers to see.
It, therefore, makes sense to make sure that all mail is redirected.
Another thing you can do is to make sure that you inform all your bankers and credit card companies about your change of address in good time too.
6. When at a cashing machine watch out for anyone too close to you and using mobile phone
Mobile phone is nowadays the weapon of choice for fraudsters at cash machines.
Therefore make sure you are aware of your surroundings when you are using a cash machine.
Fraud with mobile phones can record PIN numbers etc.
7. Report to providers any delay in receiving checkbooks or cards
My husband used to work in law enforcement at a certain point in his career and he told me of fraudsters who can easily copy signatures.
Such kind of fraudsters would have a field day if they managed to get your checkbook.
Credit cards are even easier to use once they fall into fraudsters’ hands. Before you are aware you could be defrauded of thousands of dollars.
8. Resist too good to be true irresistible offers
Most of us with emails have probably received emails purporting to be from an oil-rich African country asking us for help to transfer funds.
Those emails are from fraudsters so ignore them.
There are all sorts of frauds that take advantage of our need for cash and dangle all sorts of irresistible offers that will make us a lot of money.
Most of those are from fraudsters and if you don’t keep your eyes open you will get scammed.