Imagine you receive what appears to be just another message from your bank, in which you are asked to provide your account number or other financial details, so that something or other may be confirmed. Would you go ahead and provide that information? If your answer is yes, you might want to think again, because an innocuous email from what you think is a trustworthy source might actually turn out to be a scammer trying to access your card data.
While fraudsters should not be underestimated, keeping yourself informed about what fraud looks like and how to prevent it can help you keep your money safe. In this article, we explain what card fraud looks like and give you tips on how to prevent it from happening.
What is card fraud?
Card fraud takes place when an unauthorised person manages to gain access to your card information and is able to make purchases or payments using your card. If you lose your card or it gets stolen, it might fall into the hands of a fraudster who will make payments in your name. Card fraud can also happen online through a variety of scams.
Below, we’ll take a look at how scammers try to gain unlawful access to your money and discuss ways of preventing this from happening. But first, here’s how Moneybase can also come in handy.
How safe is Moneybase?
Using Moneybase can help you protect your card and money better. Here’s why:
Contactless card payments
The Moneybase card is contactless and NFC transactions (such as contactless card payments) are less prone to skimming. Learn more about the Moneybase Mastercard here.
Card security features
The Moneybase card itself is protected by TLS/SSL encryption to secure internet communication and e-commerce, 3D secure authentication, and an embedded microchip for an added layer of protection against data theft.
Customisable transaction settings
You can easily freeze your card from the Moneybase app. You can also customise other transaction settings, such as contactless and swipe payments or ATM withdrawals, for added security.
Real-time notifications
You can spot and reject unauthorised payment attempts thanks to the app’s geolocation capabilities and instant alert system.
Two-factor authentication
2FA allows you to verify and validate transactions by providing two types of verification. This makes it harder for fraudsters to access your data.
Virtual card
Online payments with a virtual card are safer because virtual card transactions do not provide card number or bank account details. A virtual card can be created as soon as you onboard with Moneybase. Learn more about it here.
With Moneybase, you can easily monitor your transactions through the transaction history on your phone. If you do suspect fraud or think your account has been compromised, make sure you freeze your card immediately and contact our local ISO-certified customer support unit for assistance. In the meantime, here is some more information about card and phone security for you to consider.
How does card fraud happen and how can I prevent it?
Here we have a look at the most common types of fraud attempts and give you tips on how to keep your money safe.
Lost or stolen cards
With physical cards, fraudsters may attempt to take advantage of lost cards or steal them on purpose, which is why you should always make sure you pay attention to where you keep your cards and personal belongings, especially when you’re in a crowded space.
Some of the easiest steps you can take here simply involve making sure that your cards are not easily accessible, such as when they are in a back pocket or easily reachable compartment in your bag, or that your wallet is not kept in a place where it is easy for it to fall out of without your noticing. Pack your wallet in a hidden and zipped-up compartment of your bag and make sure you hold your bag under your arms or in front of you in crowded places.
Entering your PIN
You should also be watchful whenever you are entering your PIN. Make sure there is no one looking over your shoulder when you are checking out or at the ATM, and always cover the pad as you key in the numbers.
Be discreet in your handling of cards and money. It is not a good idea to keep a list of your PIN codes or passwords on a physical paper. If it is easy for you to find your PIN code because you keep it written on a paper inside your wallet or saved as a note, message or contact number in your phone, it will probably be just as easy for fraudsters to find it, which is what you want to avoid.
Card skimming
Another threat you should be mindful of when it comes to physical cards is the possibility of card skimming. A skimmer is a fraudster who steals your card information by placing a device on a card reader. This kind of fraud occurs even when your card has not been stolen.
Compromised card-reader machines, such as POS machines or ATMs, allow a fraudster access to your card’s magnetic stripe, which holds your name, the card’s number and expiration date, and then clone your data to make unauthorised payments. Skimmers also set up cameras to be able to record cardholders inputting their PINs, so the PIN in itself is not sufficient protection.
If you are not familiar with this practice, you will not be able to spot such devices in order to prevent data theft from taking place. You can examine the card reader you are about to use for a broken security seal, a damaged panel, or any extensions that appear to be sticking out to see if it has been tampered with or if it appears to be loosely fitted, as these might all be indicative.
When it comes to ATM withdrawals, make sure you only use supervised cash machines that come with greater security than the kind of unsupervised ATMs you sometimes find at petrol stations. As for payments, it is worth substituting swipe payments for NFC (near-field communication) payments which enable you to make contactless payments by tapping your card or phone. NFC payments are far more secure than swipe payments
Phishing attempts
Scammers have others ways of tricking you into providing financial information they will then use to their advantage. Such attempts are often carried out through what is known as phishing, where fraudsters try to steal your data by posing as a legitimate entity. You might receive phishing calls, emails or messages from fraudsters pretending to be your bank, and you might even come across a scamming website inviting you to provide sensitive information such as passwords or card details.
To guard yourself against such attempts, always remember that a bank will never ask you to provide sensitive information in this manner. Also bear in mind that links contained in such text messages or emails may be harmful and contain spyware that will compromise your data.
When visiting banking or online shopping websites, always make sure you have the official URL. Some scammers will set up a fake website that might, at first glance, appear to be very similar to the one you are used to using, although closer inspection might reveal that the URL contains misspelled elements or the logo is slightly altered. Never trust a website that is not secure and look out for URLs that begin with https:// rather than http://.
Unencrypted networks
When making online payments or providing sensitive data online, make sure that you are using an encrypted network, such as your home wifi connection which you know you can trust. If you are using an unencrypted network, such as when you use the internet through a public connection that does not require a password, it is possible for fraudsters to track the websites you visit and the information you are inputting, including your card details.
The threat of fraud should not be taken lightly, and knowing what fraud is and how it takes place can go a long way in helping you keep your money safe. Although fraudsters regularly come up with new ploys in attempts to steal data, staying alert and informed will put you in good stead. The more aware you are of such practices and ways to mitigate fraudulent activity, the lesser the chance of you becoming a fraud victim.
