When you use a credit card then being aware of your billing cycle and payment deadline is quite vital. Let us suppose you have spent ₹25,000 in a month via a credit card and the 45-day interest free period ends on June 15, it is incumbent upon you to clear the bill on or before this date.
With right comes responsibility. Likewise, with possession of a credit card comes the responsibility to circumvent frauds which can follow your credit card usage.
Here we give a lowdown on different instances that can lead to credit card fraud.
1. Unknown transactions spotted in SMS or mail: In case you have spotted an unknown transaction via an SMS or email, it could be an indication of a credit card fraud. This needs to be handled very carefully and must be reported to the credit card company or bank immediately, which in all likelihood will recommend to block the card.
It is vital to note that some illegitimate transactions -- as soon as they are flagged -- are auto corrected by the system.
2. Suspicious entry in the statement: When there is a suspicious entry in the credit card statement, you need to pay close attention to it. It could be a sign of fraud. There is nothing to worry about if it relates to some charge or a fee imposed by the bank, but if the bank can’t explain it, then it is concerning.
3. Change in the credit limit: If your credit card limit is affected negatively without having used your credit is a clear indication that someone has used your credit card without your knowledge.
4. Bill surpasses previous month’s limit: If your credit card bill has surpassed the previous bill while there was no change in the usage, then it could be because of some illegitimate transaction that took place without your knowledge.
5. Credit card number or OTP: If you happen to receive a phone call from someone where the other person prompts you to share the credit card number or the OTP, then it is more likely than not, a trap to fleece you. So, it is important that you stay on guard and not let anyone take you for a ride.
1. Approach the bank or credit card company: If there is any doubt about a transaction or the entry you noticed, then the first thing that you need to do is approach the bank or the credit card company and register your complaint with them.
2. Set transaction limits on online transactions: While using the net banking, you must set the maximum limit of transaction on your credit card. After this, no one — not even you – will be able to spend more than the limit given in one transaction while using the credit card. This is a good way to prevent the abuse of your credit card.
3. Keep the card with yourself: Another precaution that you need to take is to keep the card with you. You are not supposed to physically share the card with anyone. If you share the card with someone for sometime, there could be a possibility of the card getting cloned.
4. Never share the OTP or credit card number: Although it goes without saying, some users still need to hear this – never share your OTP or credit card number with anyone, not even with the bank representatives you happen to speak with during a call with customer care.
