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Fraud Watch |
Fraud Watch is an initiative of InterSwitch and its member banks to raise awareness on card related fraud.
Fraud Watch provides information to card holders and merchants on how to identify and prevent card related frauds.
Most card frauds are easily conducted without the cardholder being aware that the card has been compromised until the card is ultimately used for fraud.
Types of Card Fraud
Lost and stolen card fraud:
This form of card fraud takes place after a card is lost or stolen from a cardholder and is used by a fraudster to purchase goods and services.
This from of fraud usually takes place before the cardholder reports the loss.
Cardholders should report the loss or theft of their cards to their bank immediately to enable the card to be block.
Counterfeit Card Fraud:
This form of card fraud takes place when a card is printed, embossed or encoded without a card issuer’s permission or when a valid card has been issued and it is altered or recoded.
Most cases of counterfeit fraud involves the process know as skimming where the original data on a card’s magnetic stripe is copied onto another card without the legitimate cardholder’s knowledge.
In order to avoid your card being skimmed, you should never let your card out of your sight while paying for goods and services at any merchant location.
Remember to always check your statement for transactions you did not make and report them to your bank immediately.
Card-not-present (CNP) fraud:
This form of card fraud is committed over the internet, by telephone and fax.
Card details are gotten through the theft of your card details such as PIN number, card number and expiry date from discarded receipts or by copying your card details when carrying out a transaction.
Advice to Cardholders:
To help protect yourself from becoming a victim of card fraud, follow these tips:
Always keep your card and card details safe.
Never lose sight of your card when carrying out transactions at a merchant location.
Memorize your PIN (Personal Identification Number). Choose a PIN that is unique.
Do not write your PIN (Personal Identification Number) on your card or in your wallet.
Never disclose your PIN (Personal Identification Number) to anyone, even if they claim to be from InterSwitch or your bank.
Never lend your card to anyone.
Remember to collect your receipts from the ATM machine or sales attendant when carrying out a transaction.
Always use your free hand to cover the key pad while carrying out transactions on the ATM or POS terminal.
Be wary of promotional scams claiming that your card details or PIN (Personal Identification Number) is required for you to win prizes.
Remember to report lost, stolen or fraudulent
use of your card to your bank.
How to know if you are a victim of card fraud
Here are few signs that helps you to know if you fallen victim to card fraudsters.
You receive an SMS alert or email notification from your bank informing you that a transaction has been carried out while your card is on you.
Your bank/card statement does not tally with transactions carried out by you.
Your PIN (Personal Identification Number) no longer works with your card.
What to do if you suspect fraud
Once you notice any of these signs, report it to your bank immediately.
Change your PIN (Personal Identification Number) to a new one.
ATM And POS Skimming
Skimming is the process where original data from your card’s magnetic strip is electronically copied to create a duplicate card without your knowledge.
Most cases of counterfeit fraud involve skimming.
ATM Skimming
Fraudsters can skim your card at an ATM using any of the methods listed below.
Card skimming
A scanning device known as “skimmer” is used to copy information from the magnetic strip on a card while it is inserted into an ATM terminal.
Once a transaction is performed with your card, the skimmer copies all the details on the card and an overhead tiny camera records your PIN.
The fraudsters then pulls the skimmer and camera from the ATM terminal and copies the stolen data onto a duplicated card and goes ahead to withdraw money from your account using your PIN.
Card Trapping
Card trapping is carried out by inserting a device inside the ATM terminal which traps your card as soon as you insert it.
The fraudsters will be posing as well meaning people and offer to assist you when you try making your transaction, they will observe and record your PIN number.
Once you give up on retrieving your card from the terminal and you leave the vicinity, the fraudsters would remove the trapping device and take your card.
As they are aware of the PIN, they go ahead to make withdrawals on your account with the duplicated card.
POS Skimming
POS skimming occurs at restaurants, supermarkets, bars or fuel stations when you hand over your card to make payment and a corrupt sales person skims your card with a small, hand-held electronic device before returning your card back.
The sales person would have made a note of your PIN number while you were entering it while making your payment.
The fraudsters then go on to duplicate your card with the stolen data and makes withdrawals on your account with the duplicated card.
Avoiding Card Skimming Fraud
Never let your card out of your sight.
Never trust your card and PIN (Personal Identification Number) to strangers.
If you have any suspicions about the card slot on an ATM, do not use it and report your observations to the responsible authorities.
If the ATM terminal is poorly lit or in a hidden area, use another ATM terminal.
Avoid accepting help from strangers at the ATM.
Be vigilant when you are at an ATM terminal or merchant location. Remember to collect your receipts and shred them.
Do not allow a sale person to swipe your card through a different machine to the one you used for your transaction.
Always remember to shield the keypads with your free hand when entering your PIN (Personal Identification Number)
Avoiding Internet Fraud
Do not give out your card details online unless you are sure the site is secure and reputable.
Do not trust a site just because it claims to be secure. Ensure that the individual or company is legitimate.
Before carrying out transactions on a site, check out the security/encryption software it uses.
Confirm that the site has a physical address and telephone number and not just a mailing address. Call the telephone number to confirm that it is working.
Be careful when responding to promotional offers and unsolicited e-mails from online merchants.
Never send your card details and PIN (Personal Identification Number), in the body of an email. Someone else might intercept it.
Never reply to phishing emails. These fraudulent emails appear to be from your bank or online merchants asking you to provide your card details and your PIN (Personal Identification Number).
Do not click on internet links within emails. Always type out the known URL.
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