Perhaps you have been a victim of credit card scams, or you know someone who has. Whatever the case, this is the last situation anyone would wish to find themselves. Reports show that credit card scams are on the rise.
Though card issuers are continually working towards new ways to shop, pay, and play, fraudsters are also working hard to keep up with the trends and take advantage of other people’s finances. They are continually finding new ways to scam credit card users.
This article covers the top 5 credit card scams to watch out for. Being aware of these scams ensures that you are never taken advantage of.
1. Video Game Fraud
Are you or your kids Fortnite players? The app has been seen as a poster boy for the success of in-app purchases ever since it generated over $1 million from in-app purchases within just three days. However, this kind of platform is a hotbed for fraud through account takeovers.
In this scam, scammers use techniques such as phishing or malware programs to get ahold of the player’s ID and password. They later use this information to rack up a ton of in-app purchases. As such, be careful before giving out your card details in such a manner.
2. Ghost Terminals
These are fake payment terminals created by scammers that are not in any way connected to payment networks. The aim is to steal credit card details.
Card issuers are having to continually upgrade their systems to provide security for such activities. However, clever thieves are also working hard to create new online channels. This makes it even harder for clients to differentiate between what appear to be scams and what is genuine.
3. Online Purchases
For people who regular make purchases through online shopping, they may have their credit card details saved on several apps and websites. This function was put in place to make it easy for people to make online purchases. However, it is not entirely safe.
Most online retailers try to make such payment methods secure. Nonetheless, always consider the website or applications’ security features and promises when providing your card information.
4. Fake Wi-Fi Networks
Scammers usually set up WiFi networks in public places. When unsuspecting people connect to these networks, their information such as account information, electronic banking logins, and credit card details are stolen.
Scammers can then use this information to conduct financial fraud. Therefore, you should always use password-protected networks in public places.
5. Social Engineering
This is the act of manipulating human behavior to gain access to someone else’s data or property. Some commonly used scams of this type include sending emails or making phone calls impersonating as a representative from your card issuer.
These scammers might trick you into giving your card information by citing network issues or suspicious activity. Be careful before you give out your card information online.
Bottom Line
Always be careful before giving your card details online, over the phone, or when using your card at ATMs. Safe account practices will help you avoid being scammed and falling into financial trouble.