Credit Card Scams to Avoid
In today’s interconnected world, credit cards have become an essential tool for managing your finances and making transactions. However, the convenience they offer also comes with a risk – the threat of credit card scams. Cybercriminals are becoming increasingly sophisticated, so it’s crucial to stay informed about these scams and learn how to protect yourself from falling victim. At Robins Financial, the security of our members is top priority which is why we are here to educate you on the most common credit card scams and provide tips to help you avoid them.
Lost and Stolen Credit Cards
The most basic type of credit card scams happen when your physical card ends up in the wrong hands because it is either lost or stolen. This can often happen when you carry multiple cards at one time. If you have several credit cards, you should avoid carrying all of them in your wallet at once. Leave the others at home in a secure place to avoid losing them or having them stolen. If you do happen to notice one of your cards are missing, you should report it to your credit card company immediately. With our Robins Financial cards app, you can temporarily lock your Robins Financial credit and debit cards in the instance that your cards are lost or stolen. If you happen to recover your cards, you can easily reactivate them through the app as well.
Card Skimming
Skimming is a method of obtaining personal data from debit or credit cards while they are used at an ATM machine or a merchant location. Scammers will alter equipment on legitimate ATMs or point-of-service systems in an effort to steal both the magnetic stripe data from the cards being used and the PINs assigned to those cards. They will then use your card information to make fraudulent purchases. In an effort to better protect our members, we offer contactless cards that allow you to make payments or pay for purchases without inserting your card into a payment terminal. When using ATMs, it’s important to be vigilant and watch for any suspicious devices that may have been placed over the card terminal.
Overcharge Scams
In this scam, you will receive an email, text, or phone call claiming that your credit card has been overcharged for a product or service. To be properly refunded, you are told that you will need to follow steps that include revealing sensitive information. This information can include your card number or even your login credentials for online banking. The safest thing to do in this situation is to hang up the phone or delete any suspicious emails or texts containing links or attachments. You should also consult your credit card company directly to verify the alleged overcharge.
Phishing Scams
Similar to overcharge scams, phishing involves scammers posing as legitimate companies or services in order to try and gain access to sensitive information. Some of the most dangerous phishing scams attempt to access financial information directly by posing as your credit card company or another real entity that would conceivably need legitimate access to card or account details. Phishing scams can come both by phone, text, or email and may present various ploys in an attempt to gain your trust. The best defense against these suspicious emails, text messages, or phone calls is to not engage.
Interest Rate Reduction Scams
If you’re struggling with credit card debt, you might be tempted by companies’ promises of lowering your interest rate. In this scam, you will receive a call from a company claiming to have some connection to credit card issuers that gives them an advantage in negotiating lower interest payments. The caller may pressure you into acting quickly stating that there is a limited time frame to accept their offer. From there, they will attempt to obtain your credit card information as well as payment for their alleged services. When looking for ways to relieve your credit card debt be wary of companies that pressure you into making an immediate decision or require upfront payment for their services.
How to Avoid Credit Card Scams
A few smart practices can go a long way in keeping your credit card and personal information safe:
- Initiate communication – Don’t respond to phone calls, emails or texts using the number or link provided – even if something sounds urgent. Instead, contact your credit card company directly through a reliable phone number to ensure the contact was legitimate.
- Monitor your credit card activity – Setting up e-Alerts for your credit card will help you catch suspicious charges early in the event your card information is compromised.
- Use tap-to-pay or your mobile wallet – Using these methods can help you avoid credit card skimmers and lower the risk of misplacing your credit card.
The Bottom Line
With the increasing use of credit cards and online transactions, the risk of credit card scams has grown. The security of our members is top priority and we want to make sure you are equipped with the knowledge and tools necessary to keep your information safe. Learn more credit card security tips and tune into our Scams and Fraud playlist on YouTube for more information on how to keep your finances secure from fraud.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.