Using a credit card? These 6 fraud-prevention tips can protect your money

Credit card fraud continues to evolve in the country as digital payments become increasingly prevalent. This has provided scammers with the perfect opportunity to become more sophisticated and carry out credit card fraud in well well-planned and extensive manner.

From skimming devices to phishing links and fake customer care calls, credit card holders must remain vigilant. Here are six simple yet practical tips to help safeguard your credit card and reduce the risk of unauthorised transactions.

I. Never share OTP, CVV or PIN

Legitimate banks and credit card issuers will never request you for confidential information or details such as one-time passwords, PINs over texts or calls, CVV number details, or any other similar facts on data via email. Any such request is a clear red flag. You should not hesitate to reach out to the concerned authorities if you are faced with such a situation.

II. Stay vigilant with phishing and fake links

Never click on links sent to you through text messages, WhatsApp or email. Even if such links claim to offer assured credit card blocking, PIN change, rewards, or refunds. Ensure that all interactions regarding your credit card take place through the official bank application or website.

III. Enable transaction alerts and put strict limits

Once your credit card is activated, ensure that you activate real-time SMS messages. Not only this, but you should also set up application alerts for every single transaction. This will help you keep track of your spending.

Furthermore, you should also have a pre-decided limit on your credit card spending. This limit will protect you from spending beyond your repayment potential. Ensure that you put limits on domestic and international spending to minimise the chances of economic fraud.

IV. Utilise credit card tokenisation and secure applications

Credit card tokenisation is nothing but a way to replace card details with encrypted tokens on merchant platforms. This helps in protecting confidential data such as the CVV details, credit card number and other associated elements. To accomplish this, you should check the detailed method with your credit card issuing authority and follow the instructions provided by them.

V. Monitor statements regularly

Review your monthly statements and recent transactions regularly. Report any unfamiliar charge promptly, as quick action improves recovery chances. This will also help you maintain a clean credit history, a solid credit profile, and a high credit score, which are essential for securing loans and credit cards in the future.

VI. Protect your card offline and online

Don’t hesitate to cover the keypad when entering your PIN, avoid saving card details on shared devices, and exercise caution when using public Wi-Fi for payments. If in doubt, deny presenting your credit card for making any payment and clear the bills in cash. This will protect your financial integrity.

Therefore, credit cards definitely offer comfort, convenience, rewards and short-term credit; they also carry risks such as fraud, overspending, high interest on unpaid dues and penalties for late payments. Staying informed, using security controls wisely, and monitoring usage closely can help you enjoy the benefits of credit cards while keeping financial risks firmly under control.

Disclaimer: MintMoney has a tie-up with fintechs for providing credit. You will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. MintMoney does not promote or encourage taking credit, as it comes with a set of risks, such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.