While no one can predict the future, it is safe to say that financial scams cause headaches and financial losses. You don’t have to be a victim if you’re cautious. Keep reading to know more about some debit and credit card scams to look out for in 2022, as well as how to avoid falling victim to these schemes.
The Oldest Trick In The Book of Credit Scams – Skimming
Prior to the introduction of chips, all debit and credit cards used magnetic strips. Cards still have these strips, even though most readers rely on chips. Some transactions can only be charged via the strip, providing an opportunity for scammers.
When scammers gain access to your card, you must act quickly because they can easily steal the credentials encoded in the magnetic strips. When they obtain these details, they can create a functional duplicate of your card and figure out your pin, granting them full access to your accounts. Skimmers will be hidden in real ATMs by professional scammers. The magnetic strip information and pins of anyone who visits that particular ATM are collected by these skimmers.
Another Common Method for Scammers: RFID Duplication
Radio Frequency Identification Technology (RFID) powers chips. Security scanners use the same technology to detect security tags in almost every store. Unfortunately, this novel technology has also led to an increase in credit and debit card scams. Scammers frequently use RFID readers to copy information from a card’s chip. They will then create counterfeit cards and use an app to spoof mobile payments. Keep in mind that you can purchase an electromagnetic field-resistant wallet that will prevent someone from reading your chip while it is in your pocket. Although you should still double-check to ensure that the security of your card is not compromised.
How to Protect Yourself from Debit and Credit Card Scams?
Signing up for online banking, if you haven’t already, is the simplest way to detect problems early. On a daily basis, check your balance and recent transactions. The earlier you detect fraud, the easier it is to limit its impact on your finances and life. If you notice any unusual transactions, contact your bank immediately. If you’re the forgetful type, start saving your debit card transaction receipts so you can compare them to your online transactions.
Anything you can do to make a thief’s job more difficult, such as keeping track of your balance, distributing your funds across multiple accounts, or using credit cards instead of debit cards, will help protect your checking account and reduce your chances of becoming a victim of debit card fraud.