Online Tips and News for your Money

test

Breaking

Post Top Ad

Your Ad Spot

Wednesday, December 23, 2020

How does credit card fraud through a restaurant work?

 


In a recent Parliament session, the Honourable Minister of State for Electronics and IT revealed that in FY 2020, close to 53,000 payment card frauds were reported around the country. Also, the total monetary value of these fraudulent transactions stood at Rs.228.44 crore. Such data is undoubtedly alarming, further underlining the increasing threat of payment card frauds in India.

While credit card frauds can occur anywhere, in recent years, restaurants have become a hot-spot for such incidents. The lack of attention while paying the bill can often lead to users losing money to perpetrators. Following is a detailed look at this mechanism and its preventive options.

Restaurant credit card fraud in India – A look

Credit card fraud at a restaurant primarily occurs due to the presence of a skimmer in the POS terminal used in such places. While swiping customers’ card for bill payments, the staffs can unknowingly swipe these cards through a skimmer that steals the card information.

Usually, these skimming devices are so small that they can fit in the palm of a hand and carry customised designs. Therefore, they are tough to notice. These devices copy the information available on the magnetic strip of a payment card, whereby removal of the skimmer gives cyber criminals access to such details. They can thus use it to create duplicate credit cards and makes unauthorised transactions using them.

How to stay safe from card frauds at restaurants?

It is difficult to spot a skimmer collecting data at one of the restaurant’s payment systems. Thus, individuals need to be more alert about such payments. Nevertheless, customers can quickly check the POS machine for any tampering before handing over their cards. While scams during restaurant transactions are emphasised here, it is true of all such POS machines installed at various selling points.

Apart from that, individuals can also keep a tab on their credit card activities. It will help them spot any issues with their account activities in time, to report instantaneously if needed.

Alternatively, individuals can always opt for a card protection plan to safeguard their financial interests from such incidents. These insurance plans offer fraud and unauthorised usage protection that helps credit card users to manage such situations efficiently.

One can also opt for a more comprehensive insurance plan like Wallet Care, offered by Bajaj Finserv under Pocket Insurance & Subscriptions. Here are some notable features of the same –

  1. High coverage amount

Under this plan, individuals get a high coverage amount of up to Rs.2 lakh against a nominal premium payment.

  1. Round the clock card blocking service

Irrespective of the time a credit card fraud occurs, individuals can quickly call the toll-free number to block their payment cards, all at once.

  1. Travel assistance

In the event of any emergency such as loss or theft of payment cards, this particular plan will provide necessary travel assistance. It includes advance for hotel and ticket booking, as well as emergency cash advance if such an incident occurs in India.

  1. PAN card replacement

Availing this insurance plan will also allow credit card users to receive their PAN cards’ replacement without much hassle.

  1. SIM card blocking

For further credit card fraud prevention, this plan aids policyholders to block their mobile phone’s SIM cards, after an accident of fraud, loss or theft.

To further enhance such coverage, one can opt for purse care coverage as well. Along with the complimentary fraud protection and other benefits available under the previous plan, individuals also receive a subscription of F-Secure device security via this protection cover. It thus helps safeguard crucial data and personal information on one’s devices.

Apart from the restaurant scams, there are other examples of credit card frauds as well. They include data phishing, hacks, physical theft, unauthorised usage, etc.

Individuals can further opt for a handbag assure plan to avail a high coverage amount against a minimal premium. It allows them to safeguard their financial interests further from every type of credit card fraud. Card users can avail payment card blocking facility and travel assistance with it as well.

Credit card frauds are increasing rapidly, and it is a growing point of concern for authorities as well. Even though there are advance security measures in place, experts still think that public awareness can only keep such incidents from growing. Nevertheless, having a comprehensive insurance plan in place is vital to counter the financial burden of such incidents.

 

 

No comments:

Post a Comment

Post Top Ad

Your Ad Spot