5 Ways Of Avoiding Card-fraud
- Get a New Credit Card With A Lower Limit
Sure, this tip is for the ones that have good self-awereness due to the fact that getting another card could lead you to excessive spending. However, if you have good impulse control having a dedicated credit card exclusively for online purchases are a great way of reducing your exposure for fraudulent behavour. By using a dedicated credit card for online purchases, if your information gets in the wrong hands you can reduce the amout avalible for stealing and your card issuer might let your invoice be held until the matter has been processed by police.
2. Use The Chip With Your Pin
By using the chip instead of the magnetic strip you are forced to use your pin-code before any withdraws are valid adding another layer of security to your purchases. If possible ask the teller if you can use the chip instead of the magnetic strip, many stores do offer this option, even if it the process takes a little more time it is time well spent. In the EU there is a law demanding all stores of significant size to keep an option available for payment with the pin-code while in the US the magnetic strip is still the dominant method of payment.
3. Memorize Your Pin
A very basic tip but surprisingly manny don’t bother memorising their codes and instead keep the pin-code and card together in their wallet, please don’t do that. As a former bankteller I know first hand that this could lead to having your claim for refund when robbed or if you experience fraud to get declined.
4. Never Lend-Out Your Card
When dating or married often yours is mine. However, if some one else uses a card in your name it’s illegal, even with your promission. So the only way to get your money back is often to repport your spouse to the police for fraud, a definite end to that relationship.
5. Get A Debit Card
One solution is to open another account and connect a seperate debit card exclusively to this account. When you are in the process to make a purchase online, simply transfer the required funds to the dedicated account and make the purchase. If the card is compromised, you face limited losses not jeopardising all your money. However, this solution comes with the most drawbacks according to me since there is often an additional fee to oppen another account and having an extra card issued and this is the most time-consuming solution of the ones listed.
However, there is no solution to be completely safe. In some instances hackers attack the actual database of the stores online and get hold of the information of all cards used in the system. One dramatic example is when the US retailer TJX’s database got hacked and over 90 miljon card-numbers got hijacked. Even if this is out of your control I still think it is noteworthy, for now, have a good one.