Avoid skimming and phishing credit card fraud

While credit card companies employ the most advanced counter-fraud technology, criminals are still working overtime to invent the latest skimming and phishing fraud schemes.

RateCity research found that almost one third of Australians (29%) have been hit by a financial scam. Scams included credit card hacks, identity theft and people who had been tricked into handing over money.

While all credit card fraud is concerning, card skimming and phishing is becoming more rampant and harder to control.

What is credit card skimming and phishing?

Credit card skimming

Card skimming is the act of illegally copying information from the magnetic strip of a credit card.

Card skimming is done for two reasons; to copy your personal information in order to create a fake card, which they can then use to access and make payments from your account or to steal your identity.

How to spot credit card skimming

The best way to avoid credit card skimming is to know how to spot it. Here are some of the most common ways that Australians can identify credit card skimming:

• In store - Suspicion should be raised if a shop assistant disappears out of sight with your card, swipes your card through a different machine than the one you used or asks you to swipe your card through more than one machine.
• ATMs - If the ATM you are using looks abnormal or appears to have an extra device attached, do not use the machine and report it to the bank and Crime Stoppers on 1800 333 000.
• Credit card statement -Keep an eye out for unusual transactions in your credit card statement as this is the easiest way to determine if someone has skimmed your card.

Phishing scams for credit cards

Phishing scams are similar to skimming fraud but are conducted via the internet or mobile phones. Emails or SMS are sent to you, under the fake cover of legitimate institutions, asking you to verify your bank account or personal details, in order to trick you into giving over this information. 

The scammer is trying to get your bank details, passwords or credit card numbers so that they can steal your money.

How to spot phishing scams

Spotting phishing fraud can be harder as they act as legitimate companies by copying company logos and creating similar internet address’s (URL), however once you know what to look for you should easily be able to spot the real from the fake.

• No prior account - If you receive an email or SMS from a financial institution that you have never held an account with and they are asking you to verify your account details, you can be guaranteed it’s a phishing scheme.
• Email errors -Big red flags to look out for are grammatical errors, spelling mistakes or your name is not addressed correctly.
• You’ve won - Be wary of any emails or SMS that tell you you’ve won a large sum of money. Chances are, if you haven’t entered into a specific competition of late, it’s not a legitimate email. They may also tell you that you are eligible for a refund or other fee that they claim has been charged to your account. It won’t take you long to verify these details by checking with your bank.
• Verify your account -Some phishing scams claim your details are needed to verify your account in order to protect you from fraud. Always be very cautious about verifying your details, unless you are on a legitimate website. Remember, most companies will never ask you to verify your password via email so if you get an email asking for this, play it safe and call the company directly.

It’s best to err on the side of caution when it comes to any emails or texts you receive that contain a link. Do not click on any links from senders you do not recognise, do not bank with, or with errors in their name, address or number. Do not open emails or click on links regarding topics you do not recognise, such as winning a competition you never entered. 

How can you protect yourself from credit card fraud?

Again, the best way to protect yourself from fraud is to learn how to identify it before it becomes an issue. Our guide on how to tell if something is a scam or not can come in handy here.

That being said, there are other practical steps cardholders can take to protect themselves from the risk of exposure to credit card skimming and phishing scams. 

• Shop securely 

Only shop on websites that you trust and make sure the website is secure. If you are making a payment online, ensure that the site is secure by looking for a closed padlock or key in the URL. Do not share your credit card details, including your CVC/CVV or PIN number with anyone. Check the website carefully and if you aren’t 100% sure don’t enter your credit card details. 

• Password protection 

Password security plays an important role in keeping your credit card safe. Pick intricate passwords for your online banking and avoid sharing these with anyone. If you struggle to remember your passwords without writing them down, password management tools, like 1Password or LastPass, can come in handy here. 

Further, most services should offer a form of multi-factor authentication at login to help protect your account. This makes it more difficult for criminals to steal information, as the provider relies on two or more forms of authentication, such as a phone call, text message, an app notification, and even a one-time password,  before you may login to view your credit card account or make a purchase.

• Never share your details

Never give out your credit card details unless it’s a website you trust and have ensured is secure, or you have phoned the company directly. Additionally, do not send your credit card details via email or SMS.

If someone has contacted you claiming to be a trusted institution, end communication and call them back yourself. If the phone call was real, then when you call the institution yourself they should have details of what is going on. If the institution advises it did not call you, you’ve likely avoided a scam.

• Do not open suspicious emails

Delete them, flag them as phishing emails within your email account or report them to the Australian Cyber Security Centre. If you have opened the email, this is okay - just do not click on the links within it or open any attachments.

The world of credit card scams is constantly evolving. Luckily, the Australian government provides an up-to-date resource advising of any current threats, as well as how to recognise and even report on scams. 

You’re never 100% safe from fraud so make sure you stay ahead of the fraud trends by reading up on the latest skimming and phishing scams. By following these rules and knowing the signs to look out for you can enjoy fun, safer shopping. 

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