Credit Card Fraud Prevention: Safeguarding Your Financial Identity

As long as personal information is maintained and exchanged electronically, thieves will try to start new credit accounts and steal identities. But if you take measures right away, you can keep yourself from falling victim to credit fraud. Being aware that credit fraud is a possibility, being vigilant for indications of fraudulent behavior, and taking swift action if you have reason to believe that fraudsters are misusing your personal information are all essential to preventing it. There is a key action that will assist you along all of these stages. Check CIBIL score!

How Can Credit Card Fraud Impact Your Credit?

Credit card fraud can affect your credit, so check CIBIL score frequently. This is because fraudulent accounts or transactions might affect your credit if they are submitted to the credit bureaus and shown on your credit reports.

For instance, a higher credit card amount and, hence, a higher utilization rate could harm your ratings if someone uses your card information to make transactions without your knowledge.

Or possibly data from a credit card you seldom ever use is compromised. If the fraudster uses the card and doesn’t pay the bill, you cannot find out if the card issuer doesn’t have your most recent contact information. You can, as a result, end up with late payments on your credit history, which would lower your scores.

A comparable situation would be where someone would take your identity and use it to open a credit account in your name. The application and new account may result in a proper inquiry, which can damage your credit, as well as a decrease in the average age of existing accounts. So, for your security, Check CIBIL score.

It’s possible that you won’t even be aware of what has happened until you check your credit report and discover an unfamiliar account with a big outstanding debt.

4 Steps to Prevent Credit Fraud and Identity Theft

Let us uncover some basic steps to prevent credit card fraud and identity theft to an extent.Β 

1. Do not do business on public WiFi

Avoid making any online transfers or payments and also when using the CIBIL score app on public Wi-Fi. You may not be aware that when using Wi-Fi, your gadget broadcasts radio waves. A hacker might ‘listen’ to these frequencies and alter your transactions. Simply choose a cellular network if you need to complete a crucial transaction that must be completed quickly.

2. Reduce the online exposure of your personal information

Have you ever given it some thought before posting a private document online?

Scammers may take your personal information through a CIBIL score app, including your PAN, Aadhaar card, account number, and card numbers, to open a loan account in your name.

3. To protect your privacy, use tokenization and encryption

RBI recently ordered card network businesses like Visa and MasterCard to provide tokenization services. Your 16-digit card number is encrypted with tokenization to ensure that it is kept confidential by the card issuer and is not disclosed to retailers.

4. Regularly check your credit score

The simplest technique to keep track of all loan accounts opened in your name must be to watch your credit score and report. Although the report has many components, the “accounts information” portion contains information on all of the credit you have received to date.

How To Safeguard Your Data Online?

Online privacy protection needs diligence, which is the reason why you need to check Check CIBIL score. Although it can require you to go against the ease of internet purchasing, doing so can ultimately save you from a lot of hassles:

  • Avoid keeping Credit card information: To lessen the risk of data breaches and the impact of someone stealing your account password, avoid keeping your credit card information and check your CIBIL score on e-commerce websites.
  • Establish proper passwords: Adopt hygiene practices by using different passwords for each account, making strong passwords, and updating your passwords frequently. Take advantage of two-factor authentication when it’s available, which verifies your identity during account login by voice call or text message.
  • Avoid using public Wi-Fi networks: During shopping online in public, take precautions to ensure that no one may see or hear your input account numbers or other personal information.

Credit Card Issuers Aid In Fraud Prevention

The companies that issue credit cards try to stop fraud before it starts. Also, Check CIBIL score. They accomplish this by checking accounts for odd activity, such as purchases that are out of the ordinary or began far from where you typically reside or travel.

Credit card issuers may also provide features and cards with additional security features, including:

  1. Digital wallets: Cards that can be used with digital wallets and have tap-to-pay built-in are available from many major card issuers.
  2. Fake card numbers: Check CIBIL score to see whether your card issuer provides virtual wallets so you can be safe while you shop online.

Conclusion

There are steps you may take to assist in avoiding credit card fraud. Check CIBIL score often. But still, there are some circumstances that can be beyond your control. Automatic notifications regarding new accounts, inquiries, or changed personal information are all included with Experian’s free credit monitoring service and could be signs that someone is trying to register an account using (or has already opened an account using) your information. Additionally, you can learn how to repair your credit in general and submit complaints online from the CIBIL score app and using your Experian account.

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