Credit Cards

Credit Card Loopholes, E Wallets, and Other Random Things To Be Aware Of

Crucial Factors You Should Know About Credit Card Fraud

Credit cards in India: Know about the loopholes you can take advantage of

It is often a misconception that holding many credit cards can assist growth. In fact, the real idea is to supervise them in a way such that you get the utmost benefits from your everyday purchasing activities. We have, thus, put together a few loopholes to take advantage of

Stolen credit cards

As banks can assist you in tracking down any stolen cards on usage at any mercantile outlet, fraudsters are currently relying on e-wallets for stealing cash from the stolen credit cards. This can be accomplished by simply creating an e-wallet account.

You would only require an applicable phone number, which can allow scammers to generate multiple accounts in e-wallets by means of diverse SIM cards. The fraudsters can then load cash from the stolen credit cards into such accounts.

Cash can be loaded into the e-wallets with credit and debit cards or by net banking passcodes. Such frauds are feasible as the mobile wallet firms do not keep check on who initiates an e-wallet account since they earn from the quantity of accounts opened. The stolen cash amount is usually employed for making purchases or online recharges.

Impersonation

Scams via impersonations have been rampant in the banking trade. Basically, impersonating involves stealing an individual’s e-wallet info, including the passcodes and making transactions, by posing as the stolen identity. The customary targets are the minimal tech-savvy users of e-wallets.

SIM swaps

This poses as much of a threat as impersonation for users of e-wallet. In SIM swaps, the swindler gathers info about a consumer, which they use for getting the latter’s SIM blocked. Fraudsters then obtain a replica SIM card by means of a fake identity attestation.

When the user’s SIM card gets deactivated, the fraudster can obtain OTPs easily and make transactions by means of the stolen e-wallet info of the consumer. This is why banks keep warning people about the threat of sharing their e-wallet password and details with others.

Malware attacks

A few e-wallet applications have not implanted proper security for preventing malware attacks. Thus, it makes for easy injection of malware into such applications for tech-savvy fraudsters and gathering user details from their devices.

  • Credit cards cashing

A chief loophole of e-wallets is allowing easy cashing out facilities to users for their credit cards. This means that any e-wallet account possessor can shift cash from their card to their bank account, exclusive of any interest or fees for making use of their account.

Even the genuine users are disposed to take gain of this loophole in their transactions. The only thing to be done here is loading cash from the card to the e-wallet and then transferring this sum to the bank account. Phone wallet companies are gradually addressing this matter by setting limitations on the sum that can be moved to any bank account.

  • Executing manifold online transactions in unison

One more chief loophole regarding e-wallets is allowing fraudsters and users to make several transactions, yet charging them for one among them only. If the transaction sum is lesser than the balance available and both the transactions are made by the user concurrently, then they would get charged only one time. Some e-wallet firms are addressing this problem by not letting more than a single operation at a time.

All in all, you can now have a fairly good preview of the kinds of loopholes that exist in the Indian credit card scenario. These are often used by people for getting a quick fix, yet can sometimes be dangerous in its usage.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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