Avoiding Credit Card Fraud

This is an article circulated by Stanchart Bank which every credit card holder should be aware of.

CREDIT CARD FRAUD - SKIMMING

Since the late 1990s, merchants have been known to be targets of card fraud perpetrators who recruit staff to record magnetic stripe data of the credit cards used at the establishments.  This is termed as “Skimming Counterfeit” and it is costing the financial institution astronomical fraud losses globally.

There are various kinds of data capture devices (called “skimmers”) recovered in various criminal cases around the world.  Each of these skimming devices can be used to copy and store data from the magnetic stripes of credit, debit, ATM and other cards.

DEFINITION OF SKIMMING

“The illegal copying (stealing) of the magnetic stripe data of a genuine card, including the encryption value, and subsequently transferring the data onto a counterfeit magnetic stripe for illegal usage.”

Skimming involved the solicitation of merchants’ owner and/or staff by the counterfeiting groups in stealing of the magnetic stripe data from a customer.

Most of these merchants identified for skimming activity are those that process the credit card ‘out-of-sight’ of the cardholder, i.e. restaurants, nightclubs, pubs, discotheques and hotel front offices, etc.

Most of the credit cards data are skimmed using these devices.  Please take note that a skimmer on average is only 10 cm in length and can be easily concealed from view.  To avoid detection, the perpetrators have also cleverly disguised these skimmers as a Y2K checker and pager

Modus Operandi:

When the cardholder presents the card for payment, the ‘collusive’ waiter/waitress swipes the credit card across a skimming device.  This device basically reads and stores the magnetic stripe data.  The physical card is then delivered to the cashier counter for normal processing of the card transaction.  All this while, the cardholder does not know that his credit card magnetic stripe data has been compromised.  The cardholder only knows about it upon notification by the Bank Fraud Prevention Unit or upon receipt of the monthly statement of account that will reflect a string of ‘disputed’ transactions.

To assist the bank to mitigate the risk of skimming, append below are guidance pointers for your reference.

1.Treat your credit cards like cash.

2.During check-in or out from a hotel, be aware on the movement of your credit card, and ensure that you note the staff swiping your card over a POS/EDC terminal only

3.Beware and question the personnel handling your credit card when it is swiped in a device other then a POS/EDC terminal.

4.Inform the Card Fraud Control Unit should you notice the personnel handling your card swipes it through a device similar to those reflected above.

5.Do not allow anyone to take your card to another area to process your transaction.

6.Speak to and recognize the waiter/waitress that handles your credit card during payment.  This transmits a ‘deterrent’ message to the personnel handling the card who may have intention to ‘skim’ your credit card magnetic stripe data.

I came across dispute with one merchandiser in Delhi , M/S Spectrum Magazines Ltd. After making payment through credit card towards subscription of A&M Magazine for 3 years.

The company have stopped sending magazines after the very first month. I have not received any promised free gifts from the company.

After waiting for 3 months I called the ICICI customer service 8307777. The rep online refused to consider the matter. Forth time I have to strongly insist for talking with the supervisor regarding the dispute. This supervisor has posted me the dispute form. After submitting the dispute form it will take more than 45 days for any conclusion.

ICICI promises for the product warranty ....Where is the promise gone...My subscription is also the product. If no then these are the loopholes which are used by the defaulters in the Indian market to run the business after receiving the payment by credit card from the customers.

Who will take the action against Defaulter...

Today ICICI credit cards...has lost the faith within me

After you have gotten your first credit card, the fun is just beginning.

Every month the company is suppose to send you a bill with a print out of anything you have charged to that card and anything you may have paid on that card.  Check these carefully, make sure they match what you have actually charged on your account.  If you see a charge for something you know you did not make or that is more than you spent immediately notify that card company so they can investigate.

Also, never lend your cards to other people.  I know this really seems like a no brainer, but you would be amazed at the number of people that have loaned their cards out to family members for one reason or another.  I know most family members are very trust worthy, or you would not loan out your card.  But some times things can happen that can prevent that person from being able to pay you the money he or she has charged on your account by the time the bill comes due.  Make sure you are prepared and able to cover any expenses this person might charge on your cards, because it all comes down to the safety of your credit.

Keep keen eye on the amount of interest being charged your account, and make sure it matches the amount of interest that you have agreed to.  Also keep a close watch on the due dates and allow enough time for your bill to make it back to their office for processing before the cut off date.  Some card companies will try to charge you a very large late fee should they not receive the bill on time for processing before the deadline.

When you hand the salesperson a credit card to pay with, watch them closely, after all, a slip on their part can cost you big bucks.  And make sure they give you your card back before you leave the counter.

Keep your cards in a safe location.  Once someone has your card, they can call and charge things over the telephone or over the internet, so watch your cards closely.

Do not give out your credit card information if you suspect someone may be less than truthful or trust worthy.

Get a credit report and check it over closely if you have any suspicions at all.