Credit Card Fraud, The Internet And Cash Machines

Credit card fraud seems to be on the increase despite strides by concerned governments not just in the US, to combat it. Millions are lost every year to this type of fraud alone and as consumers we need to safeguard our credit information as much as possible to avoid being a victim of this crime.

The ways in which your credit card details can be stolen are plenty and ingenious. For instance, if you go to a restaurant and part with your credit card, there is a chance that it can be cloned by a very "well meaning" waiter who happens to be involved in a credit card fraud gang. In fact, many credit card details are stolen that way. It is very easy to do. Even if your card is not cloned, the details are easy to copy including the three digit verification code. Advice? Never part with your credit card in a restaurant no matter how trustworthy everyone seems

Another way in which your credit card details can be stolen is if you do not shred unwanted credit details but leave them in your trash. This is easy pickings. In fact, credit card companies have made this even easier by sending their clients application forms with details printed on various parts. If this is not completely destroyed, a "smart" person can steal the details and if you happen to be very unfortunate, your identity will be completely stolen.

The "smartest" credit card fraud gangs go to extra lengths not only to clone you credit card but also obtain your pin number as well. This is the ultimate as the fraudster can behave like you and steal as much money as possible. How do they do that? By placing a device over the slot in the cash machine. As your credit card is accepted by the machine, so does their reader do its work. Your pin number is also obtained and from then on it is just a case of how long it will take for you or your bank to notice it. To avoid this particular scam the best place to withdraw your cash is in the bank itself. No guarantees are made but it is likely to be safer.

The emerging way in which credit card fraud is perpetrated is through call centres of companies who have outsourced that part of the business abroad. Customer service staff have details of all your credit information, if you happen to have a bank or cell phone company whose customer service is based abroad. This phenomenon occurs specially in Asia, particularly India, where credit card details are sold for pittance. Recent Panorama documentary on the British Broadcasting Corporation television corroborated this as they came across people willing to sell as many as 200,000 unique customer details for a lousy amount. So beware who you bank with. While you may not have direct control over this sort of fraud, you can find out details of your banks customer service operations for instance.

With the emergence of chip and pin, credit card fraud has decreased in places like the mall. However, it results in the worst way in which credit card fraud is perpetrated: being caught by a gang or even some lone thug who jumps you up, steals your card and beats you up to force you to give him your pin. This is occurring all too often and is very alarming. The best way to avoid this is to avoid going out alone late at night. Statistics show that most people who have been victims of this particular heinous crime have been out alone late at night.

So what is the best way to avoid being a victim of this sort of fraud? Some of the DOs and DONTS are as follows