Monday, May 26, 2008

Credit users should be carefull:



The busting of a city-based gang that forged identities to acquire 70 cred­it cards and liberally draw cash to tile tune of Rs 65 lakh from banks highlights the great risk that credit card users are exposed to.


The risk is three­pronged, according to the bank fraud wing of the city police. One, when you lose your credit card, it may be misused by some crook. He or she can then use the card to withdraw cash and buy valuables.


Two, when you throw away an expired credit card, the crook could take the credit card and decode the secret numbers on the mag­netic strip. Along with the name and the card number, he or she can prepare a forged credit card and en­cash it.

Three, is when credit cards are cloned. Some­times, employees at shops swipe the card in a separate machine to decode the de­tails of the magnetic strip in the original credit card, before swiping on the actu­al machine. In some places, the secret personal identifi­cation number is noted dis­creetly by hidden cameras.


The cloning involves a process called skimming in which information on the
card is recorded on a device known as a skim­mer. Skimming is turning out to be a huge men­ace across the world. "You are at maximum risk when you hand your credit card to a wait­er or cashier to pay your bill in any shopping mall or restaurants. The skimmer could be tucked away in someone's pocket and your secrets could be read in flash."

Steps for safe usage of credit card:

1.Be alert whenever someone wants to take your card out of your sight, as in petrol pumps.
2.Never let your card out of sight and check receipts and bank statements thoroughly. A card swiped in India can be duplicated in the US and perhaps used there.
3.Your credit card receipts is often enough to reproduce a replica. Customers in US are advised to shred their card receipts.
4.You are most at risk when the fraudster can easily guess your card PIN number so avoid using easily traceable facts about you as your PIN number. If you have multiple cards, have a different PIN for each one.

What about ATM:
1.If you suspect that the ATM has been tampered in any way or if you find shady characters around, simply walk away and report your suspicions to the bank.
2.If you see a strange gadget neat the card slot, don’t insert the card. Keep an eye out for miniature cameras. (These record your PIN)
3.When keying in your PIN, cover your hand with the other palm. You can never be too careful.

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