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What should you know about credit card and debit card fraud?

September 13, 2022

Among those payments, 23% were credit transfers, and 22% direct debits. The use of cards in the euro area continues to increase.

A credit card allows you to buy items and pay for them later. A debit card allows you to pay for items without handling money physically. Fraudsters can also use it to withdraw money from your account.

Many people have been victims of different types of fraud relating to debit cards and credit cards. You may never know you’re a victim until you check your bank statement.

Read on to understand how to detect and deal with credit and debit card fraud.

What is credit card fraud?

Credit card fraud is a kind of theft that allows someone else to make a payment from your credit account. Apart from making a payment, they can also make withdrawals from your account.

There are several types of credit card fraud. Stolen and lost cards can be in use without the owner’s permission.

Fraud can also happen through skimming. Skimming allows a fraudster to duplicate your card using a swiping machine.

A fraudster can also steal your card details, such as name, address, and date of birth. Those details are mostly picked from email scams and unsecured online databases.

Leaving your credit card unattended may allow a stranger to get your card information and use it for fraud.

Besides, a fraudster can use your information in an attempt to gain a new card with it.

What is debit card fraud?

It occurs when someone uses your debit card details to transact without your knowledge. Upon noticing such unauthorized transactions, deactivate your card to avoid further fraud.

There are different ways in which debit card fraud happens. One of them is skimming. Your card’s magnetic strips store your personal details. A skimming device steals your details by passing them through that strip.

Phishing is another fraud method. A fraudster will make you believe they are genuine and trustworthy in a quest to get your personal information. This mainly happens through emails or fake calls.

Lost and stolen debit cards are also used to make fraudulent transactions. Another method is hacking into a retailer's online system to steal customers' details.

How to detect credit and debit card fraud

Scammers will always attempt to hack and get your personal information for fraudulent activities. If these activities go unnoticed, they can bring you huge bills.

There are a few ways in which you can prevent them from getting to you. A regular check into your bank statements is important. Contact your card provider if there’s any charge you are unaware of.

A regular check into your card reports is also vital. It will give you information like someone trying to apply for a card with your details.

You can detect and prevent fraud through bank alerts. You can get a notification, such as a text message, for any payment made using your card. bunq users get these notifications automatically, so they’re always in full control. 

Your credit card reaching its maximum spend faster than usual could mean someone else has been using it.

Signing up for a service that monitors your card activities will give you a heads-up on any potential threats.

How to protect yourself from fraud

Avoid using your card in risky areas. Risky areas could include gas stations, restaurants, and unfamiliar locations. Avoid handing over your card to the cashiers in those places.

Keep a distance when paying using a card to stay away from onlookers. This will prevent them from copying your card number and other important details.

Once you get your account statements, it’s important to dispose of them properly after use. Shredding is most recommendable to avoid people from digging out information from your trash.

Preventing fraud could also mean inspecting a payment terminal before swiping your card. It will help you stay away from skimming. If something’s out of the ordinary, avoid that payment point.

Ask your card provider to block any lost or stolen cards. Blocking a stolen card will ensure whoever sees it doesn't use it for any transactions. Using bunq? You can immediately block your cards from your app, so no wasted time here. 

Protecting yourself from ATMs that copy and remember your personal information is also advisable. There are other safer options to avoid such machines that could remember your PIN.

What to do as a victim of card fraud

Always report credit card and debit card fraud to your card provider as soon as it's identified. They will work on your reimbursement for the fraudulent charges on your card.

Changing your passwords and PIN will help stop further transactions from your account.

In case of online fraud, contact the merchant and let them know you are pressing fraudulent charges on them. If they cooperate, it could mean you get your money back.

It’s also vital to report to the police where the fraudulent activity was extreme. They might also help recover items stolen together with your card in case of theft.

To avoid dealing with further fraud cases, sign up for online banking. On mobile, you can easily check your balances and any recent activities with your account. You can also easily take action if something is to happen. 

Enhance your banking security

The above tips are very helpful in keeping your finances safe and away from fraudsters. You can also prevent fraud involving cards by avoiding public Wi-Fi. Logging out of a public computer after using it to access your bank account is also key.

Using a good mobile banking app provides you with personal finance tips. It also gives you the freedom to transact and budget from your mobile.

bunq’s here to make your banking experience effortless while guarding your money and upholding data security. Join us now for a safe and efficient banking experience

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