Protecting yourself from credit card fraud

Over recent years credit card use has become more and more common, with many people relying on credit cards to fund their everyday purchases a well as one off purchases, and the reason behind the increase in credit card use is that it offers convenience, ease, security, and flexibility to consumers.

The convenience comes from being able to pay for purchases without cash and being able to shop online and by phone as well as in stores. The ease comes from being able to grab your plastic card and head off shopping without worrying about cheques or cash.

You can enjoy increased security because you don’t have to wander around carrying loads of money on your and risking your cash being stolen. And the flexibility comes from being able to spread the repayments on your card once you have made your purchases.

However, despite all of the benefits of credit cards there are also dangers to bear in mind, and the major problem with being a credit card holder, other than the risk of getting into spiralling debt if you are not sensible with your card, is the risk of becoming the victim of credit card fraud and theft.

Many people fall victim to credit card fraud each year, and often this is because they have given out their card details to an untrustworthy source or have been careless with their credit card details.

Credit card fraudsters use all sorts of scams to try and obtain the card details of cardholders, and this includes a process known as phishing, where they send an email to cardholders pretending to be their bank or from another agency.

The email often contains a link which the cardholder is advised to click on, which takes them to a website. The cardholder is then instructed to enter their card details, and many do this believing the site to be that of their bank or another trusted agency, when it is in fact a fake website that enables the fraudsters to get their hands on your credit card details once you have entered them.

One recent phishing scam has been reported recently, and this is where consumers and businesses have been receiving emails claiming to be from HM Revenue and Customs. The cardholder is informed that they are entitled to a rebate on their tax, and that the refund will be paid onto their credit card.

The recipient is advised to link to the website, which is a fake one, and enter their details. Consumers and businesses are now being warned to look out for this scam and not to link to the site or reply to the email, but to forward it to the real HMRC.

There are actually many other ways that people end up getting scammed when it comes to their credit cards. This includes giving out credit card details to a caller claiming to be from a company – you should never give out your account details to someone when the phone call has not been made by yourself.

You should also avoid leaving your account details saved on a computer that is shared, reading out your card details on the phone when there are other people around who you do not know well, or providing details to people in the street or who call at your home claiming to be from a company or charity.