Guard card details to fight fraud

With financial discipline, debit cards can be a great tool to control spending, but anyone can still run into trouble.

Experts in the card payment industry warn that all the fraudsters need to know are the card number and PIN to make illegal purchases. When an account is compromised, the holder can be liable for the losses incurred on the debit card.

The key to fighting fraud, therefore, is to guard card details, especially the PIN, at all costs. "Your PIN is used for cash withdrawals at ATMs and in retail outlets where the PIN is required to complete the sales transaction" notes Mustafa Ramzi, head of UAE Cards, HSBC.

The PIN should not be revealed to another person, including bank staff. Sharing it through SMS, email, fax or over the phone can lead to a financial disaster.

"If someone phones you or emails you to ask for your card details, chances are they're trying to ‘phish' for information, even if they claim to be from your bank. Hang up or delete the message and call your bank directly to report the incident," MasterCard advises.

Ramzi also advises against allowing another person, including family members, to use the card. When a card is lost or stolen, the holder should report it immediately so it can be cancelled and replaced.

Cardholders are often made to pay for unauthorised transactions before a stolen or lost card is reported. Banks take responsibility only after the cardholder alerts them about it.

"It is advisable to record card numbers, expiration dates and phone numbers. Keep this record in a safe place separate from your cards. Use it if you need to report lost or stolen cards," adds R. Sivaram, senior vice president-head of cards, Retail Cards Business, at Emirates NBD.

Subscribing to transaction alerts is another way to monitor any misuse on cards. At Emirates NBD, for instance, customers who have correctly updated mobile numbers with the bank receive instant messages about transaction details and account balances.

Using debit cards with chip technology are also safer, as they are hard to copy. "With the chip-enabled debit card, customers need to key in their PIN for almost every retail transaction, just like an ATM transaction, before it can be completed. This helps control fraud effectively," adds Sivaram.

Adding a photo on the card is another way to prevent fraud. At Citibank, customers can get photo debit cards at no extra cost. "The photograph, in addition to your signature at the back of your card will enable the salesperson to ensure that the correct person is using the debit card and there is no misuse or fraudulent activity," says Sanjoy Sen.

He agrees that getting insurance can also protect cardholders against any fraudulent transaction. When shopping online, MasterCard says it is wise to look for the safety padlock on the address bar or an https:// in the website address. (See www.gulfnews.com for more tips)