Feb 08, 2013, 04.37 PM IST
In CNBC-TV18's personal finance segment today, Pankaj Mathpal of Optima Money Managers highlights on how to prevent credit card frauds.
Personal finance expert Pankaj Mathpal of Optima Money Managers talked about how to safeguard yourself from credit card frauds. He suggests that one should be sure of using genuine software, operating system and anti-malware, anti-spyware and anti-viruses to reduce the chances of unauthorised transactions.
Below is a verbatim transcript:
Q: As weekend approaches, a lot of credit card transactions happen. One has come across several instances of fraud especially online. People are wary of doing transactions online and given their credit card details. What steps can be taken to prevent this?
A: First thing is that one should not subscribe to too many cards. Keeping one or two cards are enough. If one has too many cards then it will be difficult to manage those cards. Second thing is the credit card limit; usually banks sanction a credit limit for a card but if one is not using that much limit then he or she can request the bank to reduce the limit of the card. It is simple, one has to just request the bank and they will reduce. Therefore, the liability towards that is limited to the credit card limit offered. Third thing is, on the back side of credit card there is a number and the last three digits are for credit verification value (CVV). So, when one want to make online transaction one has to use a credit card number along with CVV. If one can remember this number and mask it, it will reduce the chances of unauthorised transactions. In addition to this when one uses the card for online transactions; one should be sure of using genuine software, operating system and anti-malware, anti-spyware and anti-viruses. This will help reducing chances of unauthorised transactions.
Many times phishing e-mails are received; these mails are designed in such a way so that they can collect the personal information. So, whenever one have doubts on some information - because usually banks never ask for Pin or number - but when one receive such mails then he or she must doubt it and should not provide any information and also one must use secure gateway or secure uniform resource locator (URL). URL starts with 'http'. However, if it is 'http(s)' it means it is secured URL. Here 's' stands for secure. So, try avoiding http until and unless it is 'http(s)'. Avoid using card in public computers like in cybercafés. Use only personal computer when one is sure that he or she has genuine operating systems and genuine software. These are some steps, which will help avoiding unauthorised uses of credit card online.
Caller Q: Is it advisable to make large payments via credit card or should they be made by cash?
A: It does not matter whether this time you are making big payments or small payments. The thing is that your password, etc should not be recorded. However, it is not limited to this thing. So, suppose you are making small payment and your personal identification is recorded and so next time it can be used for bigger transactions. So, if the question is limited to this - whether you should make big payments or no, you can do. Sometime you may get discount also for making payment through online. Therefore, it can be used provided it should be a secured transaction.
This should be paid within due dates because otherwise you will have to pay interest on that amount and sometime you may need to pay late payment charges. So, security wise, as I said earlier, you should be careful where you are making transactions. Coming to bill payment, bills should be paid within due dates. That is very important.
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