Catching a Credit Con

When did you last update your e-mail address and phone number with your credit card issuer? Many do not even bother. Now, imagine being billed for fraudulent purchases made from your card.

What do you do? First, of course, you inform the card issuer, who will probably ask you to fill a declaration form. Doing this quickly is important as, according to rules, if the issuer isn't informed within 30 days of you receiving the statement, it is assumed that you have accepted it as accurate. So, if you were out of station and didn't notice it on time, you would be legally bound to pay.

Of course, if you had updated your contacts with the card issuer and got an alert, which comes within minutes of the transaction, you could have called up the issuer immediately and saved yourself the loss.


"Important communication, these days, happens through mails and phones. So, it is crucial that the customer keeps his bank updated so that he can be reached any time for checking a transaction's authenticity." 

COMMON CATCHES
In India, according to a provision in credit card contracts, the card-issuing company isn't liable for any fraudulent transaction unless the customer files a report immediately. Once reported, the card holder is no longer liable. So, be alert and look out for the red flags. Card frauds range from purchases made on lost or stolen cards to phishing, identity theft and traps set up through unsecured Internet transactions.

Skimming or cloning is something to be cautious about, especially when travelling abroad. In this, data in your card's magnetic stripe is recorded when swiped at a machine. This information is then used to make duplicates. It can happen anywhere, at a petrol pump or a restaurant. So make sure the card is swiped in your presence.

"To minimise risk, banks also advice customers to replace cards after trips."

Do you use your card online? Beware of cyber swindles. These involve unauthorised use of card details, such as the card number, the Card Verification Value (three-digit code printed on the back side of the card), to make purchases online.

"One should register for online transaction passwords such as Verified by Visa or MasterCard Secure Code and avoid using public computers. Also, make sure that the transaction happens through a secure website, which begins with HTTP."

Fraudsters also try account takeovers and identity theft. This happens in two ways. One, a cardholders information is stolen and used for transactions where the card's physical presence isn't required, such as online purchases. Two, by placing a request for a new card using the stolen information. Monitoring your credit card report is your best defense.

"Check for unusual transactions, especially small ones, as fraudsters make these to check the card's validity."

Last but not the least, do not fall prey to phishing mails (that appear to be sent by an institution you deal with but are not), SMSes or calls.

FRAUD CONTROL
Usually, banks have dedicated transaction monitoring units and fraud detection systems to analyse suspicious patterns. So, if two transactions are made from different countries with the same card within a short period, the system will highlight this. However, it helps if the customer is also cautious. For instance, opting for cards with signature lamination and a photograph, registering for transaction alerts and transacting only through secured websites are common precautions.

If you are a frequent user, it may make sense to go for an insurance cover to take care of liabilities from loss and misuse. Banks usually have tie-ups with insurers. General insurers also offer standalone credit card policies, which cover all cards held by a customer under one policy. One alert to the insurance company can block all your cards, limiting your loss.

FOR YOUR GRIEVANCES
The RBI has appointed an ombudsman for redressal of complaints which your bank has failed to respond to satisfactorily. A bank must respond within 30 days from the date you lodged the complaint. In case of wrongful billing, the card company should provide documentary evidence within 60 days. If unsatisfied, the cardholder can go to the ombudsman.

Learn more about identity theft at www.cibilconsultants.com

Source- Secondary

Beware! Identity Theft can ruin your reputation !

One out of every five people worldwide is on a social networking website and your identity and reputation are at RISK without you knowing it!

Technology makes our lives more convenient! But with increasing convenience and information flow, it also makes us vulnerable. Growing urban population and ever evolving technology poses a challenge and makes fighting cyber crimes and imperative. 

Our personal information e.g. name, date of birth, addresses, phone numbers, email IDs etc as well as sensitive financial information is pervasive and can be easily accessible online and offline.

And it is not difficult to foresee how such easily available information, can be used to commit the simplest form of identity theft and fraud, such as pretending to be someone else and taking a mobile phone connection, or opening a social network profile or even re-directing someone bank and card statements and bills to another address. And the internet makes access to personal and financial information simpler!

One out of every five people worldwide, are on a social networking website. With internet penetration in India crossing the landmark 100 million mark, Indian netizens are hopping onto them as well with equal gusto. Facebook, Linkedin, Google+, Orkut are pervasive today, especially amongst the young educated population of India. And it is an established trend for people to take risks online. 

People often play with their online identities in a manner that they would never dream of, in the real world and this puts them at RISK for identity and online reputation thefts – says Asgar Patel victim of online reputation slander and he added – Beware yourself of too much online exposure.

For those uninitiated on how ID theft can happen, in the online world there are numerous website where your personal information is lying without your knowledge and in less secure environments, for fraudsters to misuse it, to their advantage. From crude methods to well organised scams, identity theft, online reputation slander works in a range of ways.

Taking a case in point, wedding is a big business proposition in India. Burgeoning Matrimonial websites in India have a have great business potential, however, these websites are a goldmine of personal information and most members might find themselves becoming victims of Identity thieves and fraudsters. Matrimonial websites tend to attract young men and women across the country and users create personal profile replete with information based on nationality, age, gender, religion, economic standard, job status, height, family background, and photograph. With this sensitive personal information, fraudsters can cause considerable damage be it to damage someone’s reputation or financially by buying a phone connection or procuring a credit card pretending to be someone else, with the information they have access to. 

And the victim would not know about it until it’s too late! As per a news article, an accused terrorist confessed to have obtained SIM cards with forged papers created by gathering information on a matrimonial website. Stealing an identity is, unfortunately, surprisingly easy to do and happens when one least expects it! Protecting oneself is therefore very important. 

If someone’s identity is stolen, it can take months or even years to recover from the disorder they leave behind. The number of new cases of identity theft is on the rise. This relatively new trend is the result of internet’s influence, by easing access to sensitive personal information.

>> There are 112 million claimed Internet users in India, source ComScore; Internet in India, 2011

>> Credit and Debit cards can be applied for in the name of another individual

>> Fraudulent bank loans could be taken out in the name of the victim

>> Phone connections can be taken to carry out forgery and other frauds

>> A multiple range of debts can be incurred in victim’s name

>> Email ids and social networks profiles can be created using false information

>> The information can be used in various illegal activities in victim’s name

>> Illegal acts can be performed by applying for new driver’s licenses or passport

CPP offers these warnings to help people stay safe and protect themselves. Most identity theft victims don’t come to know of the fraud until long after the incident. They dismiss possible indicators as mistakes or mix-ups and take no corrective measures like:

Unexpected verification call from a bank or a service provider

>> A warning or notice from a bank or service provider

>> Unexplained entries in your Credit Report

>> Debit of small amounts in bank statements

>> Unfamiliar purchases in your card statement

>> Receiving a statement or bill for a service you don’t have

Act Fast or Get to the Point Of No Return:

>> Do not disclose your personal details beyond what is essential, online or on social networks.

>> Do not respond to suspicious emails asking for your personal details and never disclose your bank, credit/debit card details and PIN numbers to anybody online or offline.

>> There are 112 million claimed Internet users in India

>> Ensure you use adequate updated antivirus software.

>> If you receive a request from a friend or family member stranded while on holiday asking you to transfer money to them, contact them by phone or alternative contact to verify the request is genuine before sending any money or providing personal details.

>> Regularly check your credit card and/or bank statements to ensure that suspicious transactions are detected.

>> Shred all documents containing personal information, such as credit card and bank statements.

>> Log directly onto websites you are interested in rather than clicking on links provided

in an email.

>> Read your credit report from time to time to track any suspicious changes.

Identity theft can have grave, sometimes devastating repercussions for its victims, ranging from financial loss, damaged credit ratings to loss of reputation. In a time when more and more information is being shared online, the security of personal information is very important. 

Be careful with your personal information, since becoming a victim of identity theft can take months and even years to straighten out!

Learn more about identity theft at www.cibilconsultants.com