In today’s fast-paced world, a credit card has become the most indispensable asset. Whether you want to buy groceries or shop for a special occasion in Dubai, payments are simple with a credit card, which also provides you with various cashback offers. Credit cards never bother you by depleting your bank account every time you shop; instead, you can pay for purchases later. It provides you with an instant line of short-term credit when you make a transaction.
Credit card usage in the UAE has increased rapidly over the years. With a credit card, you can buy anything you want from the comfort of your own home. But, as with everything, credit cards have advantages and disadvantages. The credit card is also vulnerable to identity theft. If you use your credit card digitally, it is critical that you are aware of online credit card fraud. You never know who will choose you as a prey to forge your credit card number. Fraudsters can cause significant damage to you through your credit card even before you are aware of it.
What exactly is credit card fraud?
Credit card fraud is a criminal offence committed when the personal credentials of another person are used with the intent of not repaying the debts. It is a type of identity theft in which the credit card fraudster uses the credit card in an inappropriate manner, leaving unpaid debts in the credit cardholder’s name. There are numerous examples from this year of losses caused by credit card fraud. According to business news sources, credit card fraud has affected a large number of UAE residents.
Credit Card Fraud Types: Here are the five types of fraud to be aware of in the UAE:
Email:
You may be receiving several unimportant or obvious emails in your inbox enticing you with bogus benefits. Today, email has become the most convenient platform for fraud. For example, you may receive a bogus email from any bank informing you that your credit card will be deactivated and your bank account will be frozen for security reasons.
Mobile phone fraud
The phone has become a mini handy world for us, with everything being done on it, from calling, chatting, e-shopping, and mail-checking. As new phone features become available, so does the threat of cyber fraud. Phone fraud, also known as voice phishing, occurs when a fraudster calls you posing as an employee of your bank and requests personal Emirates ID-related information and OTPs sent to your phone as part of the security process. They trust you because of their gleaning and official response. As a result of your lack of knowledge, you may fill your credentials, making you a victim of cyber theft.
Stolen Credit Card:
You are fortunate if your stolen credit card is returned to you, but if it is not, you have reason to be concerned. In Dubai, stealing a credit card is considered white-collar fraud. The fraudster can use your stolen card to make purchases without your knowledge or consent. You are not even aware that your card has been stolen.
Filling application fraud
It occurs when a fraudster impersonates a customer in order to obtain a credit card using stolen or counterfeited documents. The fraudster creates a false paper trail while pretending to be the credit cardholder. Such application fraud occurs while you are processing any application. To open a new account in your name, the fraudster can forge your personal information such as your name, number, bank statements, utility bills, and so on.
Card Skimming Fraud:
Credit card skimming fraud, also known as counterfeit fraud, is another type of identity theft in which the fraudster forges the details on a new counterfeit credit card. Here Skimming occurs when your credit card skimmer is attached to an ATM and the information obtained is used to create counterfeit cards.
But have you ever considered why fraudulent transactions occur in the UAE?
According to a survey conducted last year by the Payment Systems Company ACI Worldwide, 27 percent of UAE netizens have been the victim of credit card fraud in the last eight years. Each year, the percentage has risen dramatically. According to Dubai’s Department of Economic Development (DED) and Visa statistics, 37% of credit card fraud victims do not recover money lost in fraudulent transactions.
According to the sources, electronic payment fraud is on the rise in the UAE, with nearly all complaints involving credit card transactions. Banks, on the other hand, are imposing strict security measures that credit card users must adhere to. According to the sources, complaints about credit card transactions are on the rise in the UAE. Banks, on the other hand, are imposing strict security measures that credit card users must adhere to.
For the uninitiated, frauds can occur as a result of carelessness in handling your cards, and this advantage is quickly seized by the fraudsters with their sophistication. One of the reasons for the rise in credit card thefts is the banks’ indiscriminate issuance of cards. Credit card fraud is a type of theft that evolves over time if you are not vigilant.
How can you avoid becoming a victim of credit card fraud?
These are the precautions you should take to avoid credit card fraud.
- Avoid placing your trust in dubious websites:
- Never enter credit card information on any site that is not authorised or has security issues. You should check the customer reviews and the star rating to determine the accuracy of the site.
- Perform a free credit report check on a regular basis to assist you in identifying the fraudster who is attempting to apply for credit in your name. You can then immediately investigate the activity by contacting the UAE’s cyber police. Maintain a review of your monthly statements as well.
- Be wary of obvious emails and messages:
As phishing is a common form of fraud in which phishers attempt to entangle you in a fake email or text message that appears to be genuine, do not hesitate to avoid and delete it. Again, such sensitive transactional or credit card information is never obtained via mail or phone.
- Ensure that personal credentials are hidden and that cards are blocked if they are lost:
Also, whenever you use an ATM, make sure that the PIN you enter is not visible to others. Meanwhile, inspect the ATM for signs of tampering and damage. And if you’ve misplaced your credit card, take the first step and block it right away.
