The scene shows Roy Kapoor (played by Amitabh Bachchan) acting as a bank salesman. He and Ditto (played by Ritesh Deshmukh) visit a couple and inform them about their bank’s new scheme. They are giving out Rs. 7,500 rings as a gift on their credit card spending. At the same time, the couple swears to have not spent such an amount on the credit card.
In this blog, Learning Perspectives will explore the meaning of credit card fraud.
Credit Card Fraud
Credit card fraud has been around for a long time, but thanks to online shopping and peer-to-peer payment apps, it’s becoming more common than ever.
eCommerce is growing so fast that eMarketer predicts sales will reach $335 billion this year, up about 17% from last year — and that’s just sales through the top 25 retailers. When you add smaller sites and marketplaces like Etsy, Shopify, and eBay into the mix, that figure balloons to nearly $450 billion.
In response to this increase in fraud, many credit card companies have made it harder for customers to get a card. It might not be as easy as it used to be to qualify for one now, but with good credit, you should still be able to get one if you want one.
Here are some of the primary reasons why so much credit card fraud is happening right now.
Credit card fraudsters take hold of the customer’s credit card which is used unethically by them. This fraud is the unauthorized use of the card. Similar to the scene that you saw. Roy Kapoor took the card of the owner and stealthily keeps the original card in his pocket and cuts a fake card from another pocket.
Credit card fraud can lead to big financial losses. Some ways that credit card information is stolen are through skimming, hacking, phishing, and dumpster diving. Sometimes credit cards are cloned and financial frauds are committed.
Skimming is a theft of personal information. Basic card information and PIN can be skimmed without the knowledge of the owner. This can occur while swiping the card at a merchant’s shop, hence noticing such a crime becomes difficult for the cardholder.
Phishing is the most common type of fraud to steal personal information. This is conducted through cybercrime. One might be prompted to fill in the information or click somewhere that looks authentic and genuine. The customer might receive an email or a survey that would steal their personal information.
- Keeping credit cards safely with oneself.
- Not revealing the PIN and password to customer care or anyone else.
- While conducting an online transaction, one needs to be careful and take necessary precautions.
- Not share and store credit card details online.
- If a credit card gets stolen, blocking it immediately would prevent unsolicited use.