As we all know, digitalization is the future. People committing payment card or credit card scams are getting sophisticated these days. This is because the chipped cards drive the scammers to card-not-present and account takeover schemes.
As a result, scammers worldwide are coming forth with new ways to scam the users and put new twists on the old scams. Hackers get the details of your account and withdraw money from it.
In the era of increasing digital transactions, the incidents of bank account fraud have increased rapidly. Unauthorized transactions are illegally taking place. It has been defined as online fraud, digital fraud, or cyber fraud.
Credit cards make online and offline purchasing convenient, both for businesses and consumers. But, unfortunately, it also opens avenues for scammers to scam the users.
However, after suffering the loss due to the scams, people tend to stay quiet as they do not know what can be done. But it is important for you to know that you can get your full money back if such incidents happen.
What are the types of credit card scams that occur?
Interest reduction scam
Interest rate reduction fraud is a scam that takes the privilege of frustrated users who want to reduce card rates and pay the remaining balance quickly. Users receive pre-recorded calls from scammers saying that they are qualified for a scheme to reduce the interest rate and pay off the balance quickly.
The call seems to be from the legit issuer, but it is from an untrustworthy and unrelated third-party scammer. The scammer charges the users without helping them reduce the interest rates.
Free Wi-Fi
In a bid to download data on your device or avoid paying the rental for Wi-Fi, users connect to open public Wi-Fi. But it is not a safe choice, especially when performing any credit card transaction.
The scammer sets up a Wi-Fi hotspot that needs no password. As you connect to the Wi-Fi, the scammers gain access to your information virtually.
In addition, if you perform credit card transactions over the network, they may access those details virtually and misuse them later.
Credit card skimming
We are always sure when we swipe our credit card at POS for fund transfer. But, there is a risk involved when you swipe your card for payment of goods and services. The details may be stolen.
With skimming, the scammers capture the vital details of the card during a legitimate transaction. Then, they place the skimming device over the card processing terminal and extract your card details. As the details are skimmed, the scammers use it to create fake cards and scams on your account.
How do scammers scheme to loot people?
Credit card companies are loyal to their customers, and hence they offer protection services to safeguard the card users and alert them of any fraudulent charges. The scheme may seem to be a smart option, but scammers also use such schemes to commit scams.
Scammers call the users, tell them about suspicious activity on their accounts, and verify details. In the process, they extract all vital details from the users. As they get the details from the customers, they do scams.
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What to do if a person is on the verge of being scammed?
- For interest reduction scams, one can add their number to the DND registry to reduce the chances of receiving such calls from scammers. If they still receive such calls to reduce the interest rate, they should immediately hang up the call. Also, one should never share their personal, PIN, or security number and card details with anyone over the phone.
- In the case of free Wi-Fi, one must be aware of the free Wi-Fi connectivity, especially in public places. They should carefully use their personal details when using a free public Wi-Fi network.
- If it is a case of credit card skimming, one must inspect the card readers at POS and card processing terminals and cover their hands while entering the PIN. They should also update their regular card to an EMV card because EMV chip cards are secured and can be prevented from skimming. Also, one must monitor their account regularly and closely.
What to do in case of credit card scams
If one suspects a credit card fraud, he or she must know the rights and the route to report. A majority of credit card issuers offer zero fraud liability for unauthorized charges. But, users still have to learn how to end the unauthorized card. Here is what they should do:
- Contact their card issuers and report the unauthorized charges on their account.
- Change the PIN and security number immediately.
- Update their online accounts and digital wallets.
- Set up a mobile alert to know about the fraud immediately via SMS.
How to report a credit card fraud
- Before one reports the scam to the local law enforcement, they must inform the faulty charges to the card issuer. They should also support their application with an acknowledgment when filing a case with law enforcement. It will make their case strong enough.
- If someone wrongly withdraws money from a person’s bank account then they will have to complain about the incident to the bank within three days. In doing so, they will not have to bear any kind of loss.
- RBI has also said that the fraudulently withdrawn amount from the customer’s account will be returned to his bank account within 10 days on informing the bank within the stipulated time.
- If one is sure that their credit card is charged wrongly or they are the victim of card fraud, it is their right to report the scam to law enforcement. Credit card users must report the fraud or scam to Federal Trade Commission’s website.
- The website shares comprehensive details about filing identity theft and credit card scam. The details are verified and used by the agency to investigate it.
- Credit card users can follow up the case with the local law enforcement agency as suggested by the issuer. Of course, not all scams demand police involvement.
- However, it would boost the investigation of credit card scams if they follow the route. It may even aid them in recovering the stolen money into their credit card account.
How to get a refund after the scam?
People often wonder if fraud has happened then how will the money be returned? Also, if they complain after withdrawing money from the bank account, then from where will the bank return the money.
Banks take insurance policies in view of such cyber fraud. The bank will inform about the fraud directly to the insurance company and from there it will compensate for the loss by taking the insurance money. Insurance companies are also giving direct coverage to people to avoid cyber fraud.
Refunds for disputes can be obtained through the dispute process.
If you suspect that you are in fact experiencing a fraudulent transaction and you suspect fraud, inform the card issuer immediately. The issuer is likely to block your card and give you a new card that has the new number. Since the main network of cards Mastercard as well as Visa have zero responsibility policies and you won’t be responsible for fraud charges.
Visa requires that issuers credit you for unauthorised charges within 5 days after you have notified them. However credit is only provisional and they may annul the credit should they find after an investigation that you were responsible for “gross carelessness” and/or fraud. They could also find have not reported your loss. Credit can also be withheld, delayed or restricted depending on the status of your account and past history, as well as the results in the course of investigation.
The Fair Credit Billing Act also protects you from billing errors, which can include unauthorised charges. In accordance with federal law, your responsibility for fraud with your credit card is limited to $50.
In order to invoke FCBA protection, send an appeal letter to the address provided by the issuer for billing queries, along including a description of the problem. It is recommended to send it within 60 days from the date that your first statement with the fraudulent charges was mailed to you. To protect yourself, mail the letter by certified mail and request an acknowledgement of receipt to ensure you can prove receipt. The sender should resolve the issue within 90 days from receiving the letter.
Good to know some valuable informations about credit card scams. Phishing is a serious probelm in India and attacks of these kinds are happening at an alarming rate day by day. Thanks to the author for bringing up this topic.
Phishing is a serious problem in India and is happening at an alarming rate day by day. Thanks to the author for bringing up such an important yet technical topic with such lucidity. 👍🏼
Yes. I did pay thru my credit card Rs.649/- to Kemilshop – for Lounge recliner chair (including Rs.50+ convenience charges). Only the screen shot said the payment was successful and my account debited Order No. was given as 68512. I paid on 1.10.2022. 7 working days have passed I have not received the product. Sent an email yesterday [email protected] – the mail bounced saying there is no such email id. Called the mobile no. given +91 9904954289 – and getting voice message that the no. is temporarily stopped in Gujarati. I request people to care full and avoid this recliner chair order – now the advertisement for the chair comes in another name yo… . Consumers are requested to be double careful (Caveat Emptor) while purchasing and making payment online.
First – I am filing a report with my credit card issuing authority
Second – Request Times of India, a newspaper of repute, where this advertisement was published to take note of this and similar advertisements to save their customers –
Third – Reporting to regulatory authorities/IT ministry
Apparently, I got scammed. I ordered a Christmas present on September 2 and have received nothing as of October 19, though my credit card was charged.
I ordered from “homeyard mart”.
Didn’t take them long at all to take from my account. Like you, I received nothing.
……now what?
I have never heard about this company I bought a cardinal memoir that says I am always with you. On 10-20-22 was only supposed to be under 20.00 checked my statement was 24.49 said seebrawUK no phone no address
I placed an order on brokenangel.com on 10/08/22 for a Presto AboveAll can opener plus. Received email on 10/09/22 stating it was shipped that day. Tracking number they provided will only come up in Chinese language. I emailed them on 10/21/22 that I had not received shipment and asked if they were not going to deliver it to refund my payment. I never got a response on the email. On 10/28/22 I sent another email stating this was second email because I had no response from first one. I told them that if I did not receive a reply by Monday, October 31, 2022 that I would be contacting my bank about the payment they got on 10/08/2022. So I will be contacting the bank tomorrow. DON’T BUY FROM THEM ! THEY ARE SCAMMING PEOPLE!!!
I placed an order with Hashosh Store. Product was never shipped and they want me to pay to get any answers to my questions. What do I do ?
Sadly vixienan scammed me. I paid for my order, but never received it. I emailed them & wS asked to wait so thought it was legit business, but sadly have emailed them a few times but got no response. After ready up about them on here I now know that I was scammed. I feel embarrassed about it all to be honest. So please don’t buy through them.
OMG !!!! Really? I brought 7 sweaters and used my cash app card not only did these scammers pulled $41.94 that was for the sweaters ,but an additional 50.00 came out!!!!!
SCAM….. Two months ago I purchased something from ADDUPX.COM. 60 days later I have still not received the item. I have called their phone number 3 times and I just goes to voicemail. I’ve left messages each time and no response back either. Guess I’m out $87.38.
same thing happened to me, what did you do after that? How do you get the money back?
I order a Christmas tree from Tarocore Business said it was in the UK. I order it on Nov.6 then on Nov.22 I receive a small patted package from China with the tracking number Tarocore sent me. I knew this wasn’t what I ordered and refused it and sent it back. I contact the support e-mail they had. Ask where my tree was, they said it was delivered. After a couple of time of back and forth even sending a copy of the invoice. I never received a refund or the tree or heard back from them. This company is a scam and fraud.
made order from holldis shop , magfaucet made withdrawal from my account , never received my order, tracking number indicates package was delivered to an address in south florida support your local scammers, buy from these websites
I ordered a gift for my son it was a voice activated recliner and a black Friday deal 29. and some change was to see it delivered on 12/03/22 nothing in fact it didn’t even show up on my USPS app for packages coming man that bites cuz I thought it was really going to show up give me back my money! FuckN raghead
OMG I BEEN SCAM..I ordered Nov 25 2022 at 1st my card was flag but I got email from them saying my order was still available .so they gv me a order number & like all say Wil send delivery details ,well never received. I hv try to contact but the email address want work.I use this thru FACEBOOK. I’M 😠$ 46
FACEBOOK block people BUT ALLOWING SCAM SITES
SCAM!!! Ordered Christmas decorations from Waricy.com off Facebook and got toothbrushes from China instead. So I just paid $2.25 each for 20 f&^%$ing toothbrushes instead. I should have known better and chock this up to ‘tuition’ paid.
same i ordered Christmas decorations from waricy and have been going back and forth with them about a refund because i got the tooth brushes also they keep telling me my order was deliverd so i’m going to call my credit card company and have them go after them
Ordered from this place called Kelkong. They charged my account $32.43 on 11/23/22. Did not receive merchandise. I emailed them and they said send them the tracking # and then they can process the order. Ha no shipment, no tracking.
I ordered 3 blankets from Zelah Store on Nov. 9th 2022 for $45.98 and received three little toe rings. Still no blankets. Pretty sure I got scammed.
I ordered from Merrycoc on 11/5/22. They were initial bank s 5 of them, as of today 12/17/22 I have not received nothing, I did email them they said that it is on the way. On 12/12/22 the tracking stated that it is in United States deliver in/mailbox @ 01:11. I emailed again and have not heard from them yet (12/17/22). What can I do?
That’s why when am talking to company like AT&T and India guy answer phone I always ask them to put American on phone cause I don’t trust people from India there scammers and thieves!!!!
Galaxq Scammed me Dec 2022. I ordered a recliner lift chair , a 70 in tv stand with fireplace insert, and a solar generator. I reached out to them to find out when shipping would be, they replied, saying be patient.. they sent me to track an email, which has Chinese writing on it.
What is going on in the world this days??????. I purchased wigs from cutemay.com on december, 4th 2022 and l am yet to receive them because they advertized that it is going to arrive in 1 week. Then l went online to Email the company only for the email to bounce back saying its an illegit mailing address. Can someone advised me on how to get my money back.
Same here. Although, I received my order within about 3 weeks but the wigs were trash! I initiated a refund request but of course, the email they have posted is invalid. I’m going to ask my bank IF there is anything that can be done about this.
i ordered a craft cupboard that was 6′ tall and 3′ wide from Peswmor it took a month but eventually my package arrived and it was a packet of toothbrushes. Scammed!!!
I ordered some sweater and it was supposed to be from china and gave me a tracking number and then they tried to say my package was delivered and no they have sent me all kinds of emails and they be all condrerdic each other please stay away from the scam rhpoocrocti was scammed by them and it’s seems like I won’t get my money back either. SCAM