Hit hard by the rising incidence of plastic money fraud, increasing efforts are now being made to protect credit cards from fraud and misuse.

One latest move being making it mandatory by the RBI for all online transactions to be accompanied by additional authentication/validation, which requires registering your debit or credit card for Verified by Visa or MasterCard SecureCode.

However, while such moves are aimed at decreasing the risk of fraudulent transactions, still they can’t make your card completely safe and fraud-proof. This explains why you need to be extra careful while using your card, whether credit card or debit card.

Here are some tips to help you protect your card from fraud and misuse:

Always put your signature on the signature panel of your card as soon as you receive it. Although this is one of the terms and conditions of a card’s use set by the associations, this may also help prevent its misuse in case it falls into the hands of someone else.

Simply because that person can put one’s own signature behind it and start using it without alerting the merchant’s suspicion. Also, if the card is later recovered, then you may be held liable for all the transactions done by that person.

“Putting your signature is a good way for the seller to cross check the genuineness of the presenter. And most credit card companies insist that the card be signed by the user before making any purchases,” says Ashish Kapur, CEO, Invest Shoppe India Ltd.

Never write your personal identification number (PIN) on your card. Instead memorise it or keep the number separately from your card.

This way you can prevent the card’s misuse in case the card falls into someone’s hand. If both the card and PIN are there, then someone can withdraw cash from the ATM machines.

Also, you must keep your PIN secure and must not disclose it to anyone. Keep changing your PIN and access passwords frequently to avoid frauds and misuse. Don’t use an obvious password like your birth date or your mother’s maiden name.

Don't give photocopy of both the sides of your card

Do not provide photocopies of both the sides of your card to anyone. This is because the card verification value (CVV), which is required for online transactions, is printed on the reverse of the card. Anyone can use the card for online purchases if the information is available with one.

Before shopping online, make certain the internet shopping sites are secure. For this you should check out the encryption software it uses.

You can do this by clicking on the icon that looks like a lock located on the bottom right corner of the screen. A certification by VeriSign would be one of the industry’s trusted technology.

“Some sites may claim to be encrypted when they actually are not. If you are not sure, ask for an alternate method of payment,” says the HSBC spokesperson.

Preferably transact on sites which mandate validation of CVC2 value (the last 3 digits after the card number, mentioned on the signature panel at the back of the card) or at websites that are certified by Verified-by-Visa
Don’t give out your credit card number online unless you know and trust the company in question.

Because when you input your credit card information at a website or send it in an e-mail, that information is transmitted across the internet as if it were written on the back of a postcard.

“To ensure the security of your account, that information should be encrypted using the latest technology. A fraudulent site may tell you that you don’t need to encrypt the information. Don’t believe it,” says an HSBC spokesperson.

Do not give any information to persons seeking credit card information over phone unless you have yourself initiated the talk. They may even claim to be a bank’s representative, but you actually don’t know who they really are.

You should know that banks and other legitimate businesses never ask for passwords, account numbers or updated information via email or over phone.

“Treat all unsolicited e-mail (and phone) messages with scepticism and avoid clicking on website links,” says Kapur.

You should also watch your card being swiped on the terminals which should normally be done in clear view to ensure no external readers are used to capture your credit card data.

Check that the merchant swiping your card does not swipe multiple times. If you are suspicious, you can always alert your issuing bank. After making a purchase, also make sure the card returned to you is yours.

Exercise caution at the ATM Exercise caution at the ATM and ensure that you are alone when you are entering your secret PIN. Before you use an ATM, also ensure that there are no strange objects in the insertion panel of the ATM. Remember to take your card back after completing your ATM transaction.

You should also keep monitoring your financial statements. Make sure there are no changes or transactions you did not initiate. Because if reported after the stipulated period, you will be liable for any fraud transaction.

To avoid this, keep copies of sales slips and compare charges when bills arrive. If there is a mistake, call your issuer right away.

Opt for card protection plans

You can also protect your card by getting it insured. There are lots of card protection plans available in the market today which can give you protection against fraudulent charges incurred on your lost or stolen card up to 12 hours prior to reporting the loss to the bank.

Among other benefits, such plans also provide reimbursement of the money you withdrew from any ATM around the world using your payment card against a robbery event that occurs within 15 minutes of the withdrawal of the money.