6 common credit card scams: How to avoid them and what to do if you’re targeted

With the rise of digital payments, credit card fraud has also increased. Fraudsters are becoming sharper and more precise in how they execute these scams, tricking unsuspecting victims into trusting them and sharing confidential data.

Here are six common credit card scams and how credit card users can avoid them to protect their financial integrity.

Top 6 credit card scams you must watch out for

1. Phishing credit card emails and SMS: Fraudsters send fake emails, text messages and even WhatsApp alerts requesting victims to ‘verify’ their details. This is done to steal critical data and carry out unauthorised transactions. As a rule, you should never click on such links.
2. Credit card scams through vishing calls: Scamsters also use ‘voice phishing’, i.e., phone calls to trick credit card users and steal their data. This is done by fraudsters posing as bank officers, CBI/NIA officials, or even RBI officials, claiming that the cardholder is under investigation for suspicious activity. For this, confidential details such as OTPs, CVVs, ATM PINs, etc, are requested.
3. Scams through skimming devices: Hidden tools and gadgets at ATMs or POS machines that can steal or copy credit card data. This data can later be used to carry out unauthorised and steal funds from the original cardholder’s account. That is why you should always check such machines for tampering before inserting your credit card.
4. Fake credit card reward point redemption scams: Fraudsters also use ‘greed’ as a method to lure and cheat credit card users. They promise free , bonus cashbacks or rebates on expensive products and services. Links are sent to click and submit credit card details to avoid losing points. This is the most common way credit card-related fraud is committed. Once the data is submitted via the provided link, the victim suffers significant financial losses.
5. Data theft through public Wi-Fi: Credit card data is also stolen through transactions on unsecured networks. This data, i.e., CVVs, credit card numbers, and OTPs, is then utilised to carry out elaborate , unauthorised financial transactions, and expose the credit card holder to serious financial losses.
6. Application-based credit card fraud: This fraud occurs when malicious applications, disguised as legitimate financial tools, trick users into submitting their credit card or banking details. Once installed, these applications can steal sensitive information such as PAN and Aadhaar details, OTPs, CVVs, and even enable unauthorised transactions, causing serious financial losses and creating legal problems for the credit card holders.

Simple ways to stay protected from credit card scams

1. Set spending limits and enable transaction alerts.
2. Only use trusted and central bank-regulated payment gateways.
3. If possible, use tokenisation to protect your credit card data.
4. Never save credit card details on unfamiliar applications with weak security.
5. Regularly check your credit card statement for any mistakes or unauthorised transactions.

What to do if you face a credit card scam

If you face a credit card scam, don’t panic. Contact your bank immediately to block your credit card. This can be done by calling your bank’s fraud helpline and reporting the issue to . Do remember that prompt action in such cases can prevent serious financial damage.

Furthermore, you should file an FIR (First Information Report) at your nearest police station, describing the scam, and retain the original copy for future correspondence.

Why vigilance matters

It is a given that credit cards offer comfort and convenience. Still, these credit products entail several inherent risks, such as high interest charges on unpaid dues, the threat of legal action for defaults, the possibility of overspending, and exposure to serious financial reverses due to fraud. One reckless click can cost you heavily and create immense psychological stress.

Hence, before you choose or upgrade your credit card, you should consider having a fair discussion with a certified financial advisor. The right guidance in such cases can ensure that your credit card experience remains safe and highly pleasurable.

For all personal finance updates, visit