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Stay Safe From Credit Card Reward Point Fraud

IamCheated.com Research Team | April 22, 2019  6:17:pm

Stay Safe From Credit Card Reward Point Fraud

Credit Card is plastic money issued by banks and credit card companies, which allow you spend now and pay later. The number of people using credit cards is on the rise. The main reason behind the rise in usage of credit cards is interest-free credit and also various offers, discounts and reward points. These offers and reward points help credit card users save a lot when spending through credit cards.

Reward points or loyalty points are offered by almost all banks and credit card companies to promote the usage of credit cards. As mentioned earlier, reward point users can save a lot of money and even win attractive gifts. These reward points are provided to card users whenever they spend using credit cards. While these reward points help customers save money, it can also be used to cheat them of their hard earned money.

Yes, fraudsters are cheating credit card users in the name of reward points on credit cards. A lot of innocent people have fallen victim to this fraud and lost hard earned money in the greed of getting reward points on their credit cards.

See Also: Credit Card Mistakes To Avoid

Real life incident of a person who lost money to credit card reward point fraud

Recently, a Delhi based man lost Rs 60,000 to a fraudster who claimed to help redeem credit card reward points. The victim received a call from a person who introduced himself as a bank employee and told him that he would help redeem reward points worth Rs 10,000. In order to create urgency, the caller even told him that this offer was valid only till 4 pm.

Believing this to be true, the victim agreed to go ahead with the procedure. He was asked to provide the OTP sent to his mobile number. As soon as he shared the OTP with the fraudsters, he lost Rs 60,000 from his bank account.

Police have arrested a three member gang who was involved in carrying out this fraud, by posing as bank employees. Out of this, 2 members are former private sector bank employees. They siphoned off credit card data of customers from the bank and called them up, posing as bank employees.

How to stay away from this fraud?

1. Never share your card number, card expiry date, CVV and OTP with anyone over the phone.

2. Always remember that banks or credit card companies will call, asking you to provide card details and the OTP to redeem credit card points. Usually, rewards points are always credited to your card automatically, when you spend using your credit card.

3. Never share your credit card PIN with anyone.

4. In case of any fraudulent transactions with your credit card, report to bank immediately.

See Also: Types of Frauds in Credit Cards

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