Feb 2019 | Experian in the News |

The real mystery is that, through card-not present fraud, thieves can actually take your money without even stealing your credit card!

Technology has advanced to a level that is unimaginable for a normal person. It has created a wonder and turned our tech-linked life into a puzzle even though we are mostly familiar with how to use it. The same technology, which is a boon to citizens across the globe, is also a curse especially when hackers can just swipe your money in the blink of an eye. There is a new trend rising and it is a very interesting one that should make you sit up and take notice. It is called a credit card-not present fraud. It has been rising constantly over the last few years and has today became a massive threat. The real mystery is that, through card-not present fraud, thieves can actually take your money without even stealing your credit card! This is a credit-card fraud where a customer does not physically present a credit card to make a payment for a product at a shop. It is mostly conducted online or via a phone. Notably, it is is very difficult to crackdown against.


A card-not present fraud is done by obtaining details of a credit card holder like billing address, account number, three-digit security code and expiry date of the card. Credit card holders are generally fooled through mediums like online phishing. Both customers and merchants suffer when card-not present fraud occurs.


Mohan Jayaraman – MD, Decision Analytics at Experian Asia Pacific says, “Historically in India, the mandate of two-factor authentication from RBI has resulted in fewer frauds from ‘card-less’ or ‘card not present’ transactions. However, in the recent past due to SIM SWAPS and Skimming, the percentage of such frauds has gone up.”

Jayaraman says, “Consumers therefore, now might have to provide additional information to authenticate themselves to prevent such fraudulent transactions. This can become cumbersome for both consumers as well as banks.”


Here’s how you can save yourself from such credit cards-not-present frauds!


1. Buy from secured websites

If you go on Google website, and put a name of an online shopping portal or any other names, then you will see a green mark beside every link. If there is a green mark it means, the website is safe to operate, however, if not then you should avoid using search links because they can be penetrated by hackers. The main reason for shopping on a secured website, is that every renowned company takes the security matter very seriously for instance Amazon and Flipkart.


However, just because a product is available cheap on a small website that doesn’t mean they are safe. A secured website allows secure connection from one server to a browser, and hence they efficient in securing credit card transactions, data, login details and address, etc.


2. Avoid writing your credit card information anywhere

This has been directed by RBI and many banks. It is always guides customers to avoid writing their credit card or debit card details anywhere like paper, mobile phone, diary, notebook, forms or any other documents. It is alright to write your credentials in a bank in front of an authority, however, keeping information on such medium chances are high they can be lost.


Even sharing information via faxes or emails, can make it easier for unauthorised transactions. Once you have added your information on the mentioned medium, you have no control over who can access it.


3. Never share credit card details

RBI explains that one should not share their credit or debit card information with anyone either with your family, friends, spouse or children. There have been many cases where hackers have made unauthorised transactions without even stealing your credit card.


Even, if someone calls you randomly saying there is an error in your account and they urgent access of your credit card details. Then do not give them the details. Every bank will either send you a mail, sms or customer care service will call you to rectify any issues in your credit card, but will never ask any details because they already have it.


Even do not reply on any emails. You must take note, that your bank will not ask you to open any link or pass on details. Also keep a check of the email address, because your bank’s email address will never have gmail.com or yahoo.com initials.


4. Do not save your credit card details online!

You must have come across several times, whenever you logged into a website, they have asked you to save your password and information. Simply select NO!


Because, it might seem time consuming and bit irritating to feed in your credit card details every time you make purchase or log in, but they are one of the safest ways. For example, if your website is hacked and your credentials details are saved, then the hackers work is simple and easy for making unauthorised transactions.

5. Avoid signing blank credit card receipts!

Let’s say, you went to a restaurant and your bill arrives with tip, details of your food and beverages cost but the final cost is not filled in. If you signed this receipt, it can be used to penetrate, as any amount can be filled in that blank space and all they needed was your signature which you have given easily.


Hence, signing a blank credit card receipt is like a contract between you and seller. If you even tried filing a case at bank for this transaction, and the seller producers the signed receipt of yours, you can definitely say goodbye to your money.

6. Review your credit card statement!

Be very vigilant and alert! It is always advisable to review your credit card statement, minimum amount due, total outstanding amount and your interest rates charged.


Because, a hacker just needs your credit card details to carry out a transaction, it is you who will be left with debts to pay, for not being attentive. Keep a check of small transactions in your credit card statement.

7. Stay away from skimmers!

You must keep an eye on credit card skimmers at ATM. While withdrawing cash using this card, check the location, design or colours. Generally, ATMs have a similar pattern everywhere, only few private banks offer you service like where your card gets inserted and comes out only when your transaction is completed. If you are still unsure about carrying out a transaction, then you can always go at your bank ATM in their branch itself. Majority of bank branches have their ATM beside.


8. Avoid offers!

No matter how alluring a offer or discount can be, it is always advisable to have a background check of the company.

There are mails which says you have won a hefty money in crores or lakhs, and lure you into providing your credential details. AVOID IT!


Look into offers that are made by your bank, and renowned shopping portals. But also, make sure to read the terms and conditions of those offers.


Hence, use your common sense and keep your credit card details safe with you.

There is one more way to remain safe, Jayaraman says, the future of fraud control lies in Risk Based Authentication (RBA). RBA works on the concept of adopting a multi-layer approach to prevent fraudulent transactions which may include device identity.


Device identity solutions find a unique ID for the devices the consumer transacts from to build a ‘trust network’ and equally to create a list of negative devices. The Experian offering on device ID is Fraudnet+ which also uses advanced machine learning to create a learning algorithm that can predict device fraud better.


“The RBA approach will ensure that consumers are not inconvenienced and can have a seamless customer experience without infringing upon the customer’s privacy,” Jayaraman added.