Summary of this article
Watch for phishing, cloning, suspicious links, tiny transactions, urgent requests.
Never share OTPs, verify websites, avoid public Wi-Fi for payments.
Enable tokenisation, use official apps, review statements, block lost cards.
By Akshay Aedula, Product and Growth, CRED
Credit cards make payments effortless, but that convenience also attracts more sophisticated scams. This Q&A breaks down the key red flags to watch for and the tools that help keep your money safe.
What are some of the most common types of fraud people should know about today?
Credit card scams are evolving, but most still rely on familiar playbooks. The key is catching the signs early.
Phishing is the most common one- calls, texts, or emails that look legitimate but are designed to extract your OTPs or card details. Then there’s card cloning, which usually happens through tampered ATMs or compromised swipe machines.
Online scams are another area to watch out for unverified shopping websites, suspicious payment links, or malware that quietly captures your card information as soon as you enter it. Sideloaded Android apps can quietly access your SMS, contacts, and screen overlay permissions. With these rights, scammers can intercept OTPs without you ever having to share them.
Understanding these patterns helps you stay a step ahead.
What are some red flags that cardholders should watch out for?
Small, unfamiliar charges are often the first sign of trouble. Scammers usually test a card with tiny transactions before attempting anything larger. Unexpected login alerts or OTPs for purchases you didn’t make are things to be taken seriously.
Be cautious of any call that asks for your card details or OTPs; legitimate organisations will never request them. Always check the website URL before entering your information; if something feels off, it’s better to step back.
Random cashback, KYC expiry or renewal, traffic challan messages, or “redeem now” links can also be traps.
When anything seems even slightly unusual, cause urgency or panic; pause and double-check. It’s a small habit that can prevent much bigger problems.
With so many online transactions happening every day, what practical steps can consumers take to keep their card information safe?
With so many online transactions happening every day, what practical steps can consumers take to keep their card information safe?
Start with the basics; use only official apps or verified websites for payments, and keep your passwords updated. Be cautious when installing remote-access tools or granting system-level permissions. Maintain basic device and network discipline- install apps only from the official Play Store or App Store, and avoid using public Wi-Fi for payments.
If your card is ever lost or stolen, block it immediately. Plus, make it a habit to review your statements regularly.
Another important, but often overlooked, safeguard is card tokenisation. Instead of sharing your actual card number during a transaction, the bank generates a unique digital token that works only on that specific device or with that specific merchant. Even if someone intercepts it, they can’t use it. Your real card details never move across the internet, never sit on a merchant's server, and never appear in the transaction trail. It’s a small switch that works silently in the background, and can reduce the chances of your card being misused.
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
