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As the world shifted towards becoming a more cashless and digital society over the last two years, credit card fraud started to increase as well. The United States alone suffered an estimated loss of over $11 billion from these transactions. Merchant Risk Council CEO Julie Fergerson explains that this number will only continue to grow in the next two or three years.
It has become even more important to be able to protect yourself from falling victim to crimes associated with credit card fraud. Although Time.com notes that women are more responsible than men when it comes to using this payment method, knowing what security risks to look out for and which measures to take will greatly increase your financial safety and prevent you from experiencing fraudulent transactions. When kept safely and used correctly, credit cards can be extremely beneficial since they can build credit scores, be used anywhere, and earn rewards. They are essential for every woman who wants to take charge of their finances.
Top security risks
POS Skimming
One of the main credit card security risks is the possibility of POS (point of sales) skimming. This is when your card is swiped or inserted into a payment terminal or POS that then ‘skims’ or copies all your information– even the data on your chip. While this can happen accidentally, especially with out-of-date systems, some criminals will use this to steal your information and make fraudulent charges.
Data breaches
Security risk can also boil down to your financial provider. Another way your information can be accessed is through a data breach on a bank’s end. Once their system has been hacked, thieves will gain access to your personal information and card details. This is brought on by a lack of security measures on their end and is highly preventable.
Human error
Lastly, security risks can also come from human error. If you leave your card unattended or end up sharing its information online, there is a chance that someone will use your data to make unauthorized purchases. While it is a retailer’s job to ensure that the buyer and card owner is the same person, security measures aren’t as strict– leaving you vulnerable.
Fraudulent card transactions can affect you in many ways. It can greatly impact your credit score, making it difficult to secure loans with low-interest rates. With women already having a lower average credit limit in comparison to men, as reported by the Federal Reserve Bank of Philadelphia, this just adds more issues and leaves you with lesser financial security. It is important for you to take the right steps in making yourself less susceptible to these security risks.
How to avoid them
Choose trusted providers
Getting a card from a trusted provider ensures that the institution you’re partnering with is taking precautions in keeping all of their client’s information safe. The Chase Sapphire Card for example is a great option for financially conscious women since the institution doesn’t only ensure security but also rewards frequent users through points. Getting a card from a trusted provider is one of the best ways to ensure your safety as a credit card user.
Keep security details confidential
You should make it a habit to never divulge your card’s details. Your card number, name, and expiry date are some of the things you should keep secret. Most importantly, you should also keep your card verification value (CVV) confidential. AskMoney.com details that your CVV is the number used to verify that it is you making the transaction when a physical card can’t be presented. A common example of this is an online payment. Keeping this extra layer of protection confidential will help prevent you from exposing your security details and enabling others to use your information without your knowledge.
Only shop from established retailers
Since retailers also have a hand in unknowingly or willingly abetting credit card fraud from happening, it is important that you only shop at establishments you know are safe. Big online platforms like Amazon make it a point to guarantee user safety. If you are unsure whether or not a store is reliable, try checking reviews from other people. If there have been previous complaints about credit card information becoming public, you should avoid them altogether. While this may seem like a small precaution, any form of safety is better than none.
