Five guidelines to protect your bank card

Most people will say that when it comes to protecting their hard-earned money, they are prudence personified. Whether it's avoiding carrying large amounts of cash around, being discreet when opening the wallet to pay, or never leaving cash lying around the house, people usually exercise the right measure of common sense and care in protecting their cash. But for many, that common sense does not seem to hold when it comes to using plastic money — that is, credit, debit and ATM cards.

Banks constantly invest in complex fraud and data protection systems, and yet, it is often customers who unknowingly work against their own interests and put their money into a vulnerable situation due to lack of awareness and little caution.

A survey of 100 UAE citizens, done in conjunction with Synovate Research Company, unearthed some of these risky habits, including inappropriate PIN (personal identification number) storage, sharing of cards, and failure to retain card receipts.

1. Mobile phones: good for SMS notification; bad for PIN saving

Random numerical combinations are difficult to remember no matter how good one's memory is. That is probably why 50 per cent of card holders plead guilty to saving PINs on mobile phones, and one in four go as far as writing it on card sleeves or even on the back of the card itself. Pickpockets who get their hands on others' cards and phones can easily check for this common practice. Customers are therefore urged to change their PINs to a combination that is more easily remembered. On the other hand mobile phones can be useful for banking services, by providing SMS notification on card transactions so that no payment or withdrawal is made without the customer's knowledge.

2. With bank cards, sharing is not caring

Although it is widely known that credit and debit cards must be used only by their owners, as many as one in three people share their cards in the UAE, unaware of the issues and complications this causes for banks in tracking fraudulent or unauthorised purchases. A safer alternative is to issue supplementary cards for dependent family members.

3. Sign your card

Even though a signed credit card is helpful in avoiding fraudulent purchases, especially in the case of card theft, only 50 per cent cardholders actually sign their cards. Many merchants verify signatures with those on the back of cards to ensure consistency, and reserve the right to report questionable discrepancies. It is important to stick to one signature to avoid confusion.

4. Hold on to your receipts

Credit and debit card receipts are useful as proof of purchase and when going over monthly bank statements, however, as many as one in three people throw transaction receipts right away. It is important to avoid this, especially with receipts of ATM transactions which are often found around ATMs, giving away confidential account information. It is also advisable to review bank statements for credit and debit cards on a monthly basis to help identify possible transaction disputes. Customers should also be careful to check the amount on receipts before signing them.

5. Beware of dodgy websites

The arrival of internet banking has opened a massive window on our PCs to online shopping. Even though security measures have been beefed up in recent years and standards have become extremely stringent with regard to fraud protection, only one in three people live up to their part of the bargain and avoid dodgy merchant sites by checking for the secure lock icon that appears on the internet browser, plus the message and logos that confirm certification by Visa and/or MasterCard. Online shoppers must also keep in mind that the website address of a secure site typically starts with https:// instead of the standard http://. Finally, it is important to remember that credit card details should only be shared to perform transactions and not to provide personal profile information.

The writer is Head of Cards, Rakbank. Views expressed here are the writer's own and do not reflect that of Gulf News.