Do you know credit card fraud or cloning is the most common type of identity theft? The skimmers get all your personal information like card number, name, and password. They can replicate this information to commit fraud in the future with your cloned card.
As of the third quarter of 2023, 318,087 credit card fraud reports have been filed, indicating a concerning issue in today’s digital world. This guide provides you with effective strategies to shield yourself from fraudulent activities.
What is Credit Card Cloning?
Cloning is a rising credit card fraud when someone gets a copy of your credit card data without your consent. Cloning is also referred to as credit card skimming when fraudsters steal your credit card data to damage you and use your details to gain unauthorized access to your bank account and make a purchase.
However, it has become essential for everyone to be cautious and protect their credit card information to avoid becoming a victim of credit card cloning. In this blog, you will explore all the essential details about credit card cloning and further investigate the effective ways to protect yourself.
How Does Credit Card Cloning Work?
Skimmers use different scams to steal credit card information to access sensitive information, which can lead to financial loss. Here are a few examples to help you deeply understand credit card cloning.
1. Card Skimming
Skimming is one of the most used and trending credit card cloning tactics. The skimmers or cybercriminals use an electronic device to capture your credit card details while you are making a transaction at an ATM or on compromised point-of-sales terminals. However, criminals use this information to perform fraudulent activity or create a cloned card. Protecting yourself against these frauds is essential for your financial safety.
2. Card Theft
Card theft is another scamming technique where criminals physically theft your card and then make transactions from the stolen card. However, it’s an old-school tactic where some criminals steal cards from various mailboxes to perform transactions. So, if you have received a notification from the bank about collecting your card but haven’t received it, you should instantly talk to your respective bank about the issue.
3. Magnetic Stripe
You must have noticed the magnetic stripes at the back of your card. The skimmers often collect your data when you swipe your card to make a transaction. Those magnetic stripes transmit your data or store your information. However, they do not offer any encoding protection and can be easily duplicated by using a simper skimmer.
4. PIN Capture
Capturing a PIN is the most trending credit card fraud and the most critical one. You will never know that your PIN is being captured during the transaction. In most cases, the criminals install a pinhole camera somewhere on the ATM machine to capture your PIN once you enter it to make a transaction. This information helps skimmers commit fraudulent activity with the cloned card.
5. Duplicate Cards
Cybercriminals can also retrieve the skimming device and download all the captured data to store it. And that stored data may result in creating a replica or clone of your original credit card, which is then used in unauthorized transactions. Moreover, they can even sell your cloned card information on the dark web.
Therefore, card cloning has become a daunting concern in the digital age, and counteracting it has become essential. Let’s explore effective ways to protect yourself against the increasing number of illicit activities.
How to Protect Yourself Against Credit Card Cloning?
Preventing card cloning requires various prevention measures, and safeguarding yourself against them is necessary for everyone.
1. Regularly Check Bank Statements
Regularly checking your account statements can prevent you from substantial financial loss. If you monitor any unnecessary transactions, you should instantly block your credit card to avoid any further fraudulent activity. Regular monitoring is effective in tracking any unauthorized transactions.
2. Cover PIN During Transactions
Cybercriminals often place cameras to capture your details. However, covering the keyboard while entering your PIN is advisable to protect yourself from capturing the data, and prevention measures to avoid credit card fraud or cloning. Put the hands over a keypad to prevent PIN recording.
3. Carefully Monitor ATMs and POS Terminals
When you enter the ATM to make any transaction, carefully inspect the whole area to investigate whether it is safe to use. The best way to prevent cloning is to check before inserting your card. Skimmers are often placed over the keypad area for easy capturing. If you feel something unusual around the area, don’t use that ATM to make any transaction.
4. Choose Chip-Enabled Credit Cards
Cards with EMV chips are more secure than traditional magnetic stripe cards. The newer EMV technology cards are difficult to clone because the embedded microchip generates a unique one for every new translation. Therefore, using chip-enabled credit cards often makes it harder for cybercriminals to clone your credit card and guard against any malicious move.
5. Enable Transaction Alerts
Enabling transaction alerts means getting notified for each transaction performed from your account. The respective bank sends you a message and an email after every transaction, which is a great way to keep a track record of your transaction history. If you ever get a message of the transaction you didn’t make, instantly report the transaction to prevent yourself from financial loss.
6. Educate Yourself
Keeping yourself updated regarding current threats and crimes is essential to protect yourself from any kind of credit card fraud and cyber threats. Avoid sharing your personal details anywhere, as legitimate websites never ask for your information in any suspicious way. Learn from past credit card frauds and try to understand their causes to avoid similar mistakes and protect your data security.
7. Use Contactless Payment Methods
Contactless payments like NFC technology, Google Pay, and Apple Pay are the safest payment methods to make payments. These updated technologies securely encrypt user data during transactions, making it hard for third parties to track or record your financial details.
8. Use Secure Websites for Online Transaction
Making online transitions has become extremely common in the digital age. While making an online transaction, prioritize using secure and reputable websites. Always check the website URL (https://) and the padlock icon in the address bar to ensure a secure connection. However, avoiding sharing your personal details on unencrypted or suspicious websites is always great. Using a VPN while making online transactions is another best prevention measure to protect from credit card cloning.
What to Do If My Credit Card Has been Cloned?
If you have ever experienced an unnecessary transaction from your credit card, instantly report the problem to the credit card issuer. The respective bank instantly reports that transaction and could save you from fraud.
Therefore, instantly freeze or block your clone card to mitigate further financial losses and secure your account. However, changing your PIN or online banking passwords is necessary to prevent other unauthorized access.
Additionally, regularly keep an eye on your bank reports and use strong passwords and two-factor authentication to protect yourself against such threats and credit card cloning.
Wrapping Up
Overcoming these challenges has become essential rather than an option due to the ever-increasing credit card cloning. Follow the prevention methods mentioned above to protect your privacy and prevent identity theft and other threats.
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