This article was last updated on November 9
Credit card fraud is on the rise worldwide as we move from a paper/cash based economy to an electronic/online one. For this reason it’s important to be aware of credit card security and to protect your financial identity. Many people are not fully aware of the extent of credit card fraud, but these common myths about credit card security will shed light on that and also suggest what you can do to reduce your chances of becoming a victim of fraud.
Myth 1: Online shopping is 100% safe
This is one of the most common myths about credit card security. The truth is that
although online retailers try to use best practices to provide credit card security, shopping sites can be attacked by fraudsters. It’s important that you use an up-to-date anti-virus and proper firewalls on your computer when shopping online, in order to maintain your credit card security.
Myth 2: Nobody can use my card without the PIN
This is another of the common myths about credit card security. Fraudsters are able to use your credit card even without the PIN. They can do so online and when shopping over the phone. In addition, they can go shopping with the card and forge your signature instead of inputting the PIN.
A recent report found that many retailers do not check whether the signature by the shopper matches the card signature – this is a fact that many fraudsters are aware of and do not hesitate to take advantage of.
Myth 3: The card company will spot the fraud
Credit card companies have many advanced fraud detection technologies in place. However, as preventive technology improves, so do the methods used by fraudsters. Fraudsters often use your card to make multiple small transactions which are not detected by the card company. For this reason, it’s important that you check your card statements regularly for any transactions that you did not authorize.
Myth 4: Fraud won’t affect me
Credit card fraudsters are becoming more intelligent and using more advanced technology each day. Credit card fraud can affect anyone. So it’s important to monitor your card statements and protect your identity. Even better, check your online transactions weekly to monitor any unauthorized usage. You can now setup online alerts from most credit card providers, if a transaction or credit card balance passes a certain limit.
Myth 5: Recycling my card statements is safe
It’s unwise to recycle or throw away your credit card statements. Many fraudsters go “bin diving”, looking for information like this, which they can then use to commit identity theft. For this reason, it’s important to shred your card statements and cut up any old cards.
Hopefully, now that you are aware of these myths, you will be able to take better steps to protect your personal and financial identity. This will make you less likely to be a victim of credit card fraud.