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How to protect your cards from frauds?

June 27, 2016 12:21 IST

Fraudsters are always one step ahead of you as well as the security systems adopted by banks to prevent card frauds. Nevertheless, frauds do happen. What you can do though is protect yourself and minimise such frauds by following these simple rules.

Recently, when a friend of mine called me, I could sense the tension in his hurried voice. He said that someone purchased jewellery worth Rs 115,000 using his credit card in Bangalore, when his card was safely inside his wallet in Chennai. I consoled him and asked him to talk to the bank immediately. Even though he was not charged by the bank after they confirmed that the purchase was not done by him, the mental torture he underwent was unbearable.

But this incident made me think aloud:

How can we protect our credit cards, debit cards from such frauds online as well as offline?

Is there really a way to escape from credit card cyber attacks?

Will RBI and banks do something to stop it?

Yes, RBI has implemented key measures to enhance better security on credit and debit cards, some of which are:

Okay, banks are taking action. But, does it mean that you and I are 100 per cent safe from credit card crimes?

Unfortunately, the answer is no. You are not 100 per cent protected just by banks implementing safety measures in their systems.

Will you keep your doors open while going out just because you have police patrolling the area? No, right? Likewise, you must take responsibility to protect yourself from such card frauds. You must take precautionary measures while using ATM cum debit cards and credit cards online and offline.

So, what should you do to minimise the chances of being a victim of ATM cum debit card theft?

Carelessly used pin numbers are the reasons people become a victim of debit card crimes. What can be done to protect the pin?

How to protect your credit and debit cards while using in retail outlets, shops, restaurants or petrol pumps?

How to protect your credit and debit cards while using online?

Illustration: Dominic Xavier/

K Ramalingam, CFP CM, is the Chief Financial Planner at holisticinvestment, a leading financial planning and wealth management company

K Ramalingam