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Business Finance

Who Is Liable for Credit Card Fraud?

Credit Cards have been a revolution in the finance world since their introduction as Diner Cards in the 1970s. They’ve served as the foundation for modern cashless payment systems. Credit cards work similarly to e-loans in that anytime you use one to purchase something, you are borrowing money from the credit card business. These charges are then billed to the credit card owner on a monthly basis. This bill normally includes the amount you must spend for goods as well as a fee assessed by the credit card company as compensation for their services. 

We all have certain spending tendencies in general. Some of us are frugal and strategic with our money, while others are spendthrifts. Consider that you’ve had an unplanned spending binge on your credit card statement, and you know the charges aren’t justified because you never bought that item. Then you are most likely a victim of credit card fraud.

A golden chipset is etched on every credit card. This chipset holds all of the card’s information and serves as the transaction’s interface. Card numbers and PINs serve as keys to the chipset’s sophisticated information. We often believe that using credit cards is safe because technology has achieved its pinnacle and our reliance on cloud data has made it difficult to retract such sensitive information as credit card numbers. Consider what happens if someone with excellent coding skills obtains some fundamental information, such as card numbers and pins. After that, it’s only a matter of minutes before they have complete access to someone’s credit card.

 

How does credit card fraud typically occur?

  • When your credit card is lost or stolen — After all, a credit card is a little thing with a lightweight, making it easy to misplace.
  • When your card information is forged or cloned.
  • Via emails from bogus companies promising excellent offers on high-end things in exchange for your credit card information.
  • When someone steals your credit card on purpose. A credit card is far easier to take and sneak past with than cash or precious goods.

If you’ve been a victim of credit card fraud, here’s what you should do

  • Notify your credit card company right away.
  • Confirm the fraud’s location and estimated time of occurrence.
  • Close your account or request that your card be frozen straight away.
  • Fill out an application for a new card and account number.

Things to keep in mind regarding Credit Card Fraud and how to avoid them 

  • Pay attention to the companies’ credit card protection standards, as credit card issuers are notoriously tough when it comes to card security. Each card has its own login and is linked to third-party companies that give financial support and insurance coverage in the event of an emergency. This means that even if your card is stolen and used fraudulently, you will not be held liable for the amount laundered.
  • Maintain a close check on all bills and reports. People frequently take longer than four days to notice a dramatic shift in their costs. As a result, keeping a close eye on your bills will help you stay on top of things.
  • Always keep an eye on your credit card, as they are quite difficult to replace once lost.
  • Don’t take chances with credit card security; any illegal actions taken by owners to launder money through credit card fraud can result in three years in prison and fines of up to Rs 1 lakh.
  • Nowadays, best credit cards in India providers offer credit card protection plans. These plans are similar to insurance in that you pay a small annual fee and the firm covers any damages you incur as a result of credit card fraud during that time.

Every year, more than 50,000 cases of credit and debit card fraud are reported in India, resulting in a loss of over Rs 220 crores. If you believe you have been a victim of such an incidence, contact your credit card company’s customer care department right away.

Finally, because credit cards are a financial obligation, everyone should safeguard their cards with extreme caution and privacy.

 

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