Credit cards are useful tools for easy online transactions. They also help people go through periods of low liquidity. However, along with the benefits that come with using a credit card, you are also exposed to the risk of a credit card data breach.
Let’s examine the finer details of what a credit card data breach is. Also, we share some simple tips to help you protect yourself from any damage caused due to such incidents.
What is a credit card data breach and how can it affect you?
The server at the merchant end can capture and store the credentials like their name, date of birth, credit card number, card expiry date and CVV in the online transaction. A data breach occurs when scammers use server security flaws to gain access to those credentials.
The scammers then use the credentials to:
Make unauthorized transactions on your accounts Open fake loan account in your name Use phishing and other techniques to extract more details to perform the above transactions.
How a data breach affects you
First things first, don’t panic for two reasons:
Banks have multiple layers to protect highly sensitive data like CVVs etc.
Therefore, the chances of hackers getting hold of those details are relatively low.
As per RBI guidelines, you as a customer have no liability for the data breaches if the bank was negligent.
The effect depends on the details compromised, which are as follows:
Basic details like name, address, email id – Scammers can attempt phishing attack to collect sensitive details like OTP, CVV etc.
Sensitive details like CVV – Scammers can do genuine transactions on international websites which can cause you financial loss.
Simple tips to protect yourself from credit card data breach Here are some easy steps to help you stay one step ahead of scammers and protect
Yourself from a credit card data breach:
Do not share personal information like OTP, CVV etc. with anyone, even if the person making the request looks completely genuine.
Explore digital insurance as it covers damages caused by data breaches.
Don’t forget to set your credit card limit for national and international transactions.
You can do this very quickly on your bank’s internet banking portal.
Keep credit cards and bank accounts to a minimum so that you can regularly and easily monitor transactions.
Make sure instant transaction alerts are activated on your accounts.
Periodically check your credit report for fraudulent loans or credit cards issued in your name.
With the changing dynamics of fraud in today’s digital world, you cannot afford to be complacent. The tips shared above provide strong protection against such scams. However, if you notice any unauthorized transaction in the account, you should immediately report it to the bank. Doing so will prevent further damage and any negative impact on your credit score.