Why do European card fraud transactions rise?

Why do European card fraud transactions rise? Statistics show European card fraud transactions hit €1.8bn in 2016. How do you protect your Financial credentials?

29 June, AtoZForex - Answering why Global as well as European fraud transactions have been rising is simple, yet complicated. The rise in online and mobile shopping is the main reason why the card fraud transactions have been rising and the UK based consumers are the biggest losers with £618m loss in 2016 alone.

UK consumers are not the only ones becoming card transaction frauds, Poland saw a mere 10% increase in fraud from 2015 to 2016 while Sweden card fraud transactions rose by 18%.

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In one of the previous articles, we were discussing 5 tips on how to protect your personal financial data. Keep them in mind, and stay on the safe side.

Why do European card fraud transactions rise?

Everything started with the introduction of chip and PIN. People then started using their mobile phones, online transactions started to rise. Indeed, when there is a flow of money, there is always going to be someone trying to manipulate the system. One of the most common card frauds is Credit Card Skimming.

Victims of Credit Card skimming see fraudulent charges or withdrawals from their cards while they have the card.

How does Credit Card Skimming work?

Technology supports progress as well as scam. Credit card skimming is also a product of technology. Scammers use a small device plotted into ATM or even a mobile card payment machines.

When you swipe your credit or debit card through a skimmer, the skimmer device will capture and store all the necessary details stored in your card's magnetic strip. Scammers will then use this stolen card data either online or with a counterfeit credit card in various shops.

Indeed, in our last trip to South Africa, one of the AtoZForex personnel became a victim of credit card skimming fraud. During his entire trip, our staff stayed, dined and shopped in Sandton, which is a financial center in South Africa. However, just one day, our colleague went on a trip outside Sandton where he used his card to pay for a tour guide on a mobile (one of those cordless) card payment machine, where the payment failed.

24 hours later, our colleague received SMS after SMS that his card was being used for purchases such as online magazines, mobile top-ups and even jewelry worth $1800, all in South Africa.

How to avoid Credit Card Skimming scam?

Here are a few tips on how to avoid Credit Card Skimming scam:

  • Shop in reliable places: Touristic places, restaurants, bars and gas stations are among the top credit card scam centers. Thus, if you have to pay for something and you are not familiar with the area, don't use your credit card to avoid any possible Credit Card Skimming Scam.
  • Know how a credit card skimmer looks: Before you stick your card to an ATM or a payment machine, check if it is fixed or parts of it is moving, especially the card slot and the pin pad.
  • Be careful with the ATMs: ATM skimmers are among the top credit card scams. They often will have a camera to get your pin or simply use fake pin pad. Always cover your hand and try to remove the pin pad before you type your pin.

How to avoid online card fraud transactions?

How many times have you purchased online in the past 90 days? It is likely that you have used your credit or debit card at least once. So, how do you avoid online card fraud transactions?

Although there are multiple ways, one of the best and most simple one is to make sure that you use a reliable antivirus. Next, make sure that your card is using an extra security such as 3D secure payment or the Dutch iDeal payment style.

Finally, always make sure to use a virtual keyboard while putting your card details online. The most recent card data stealing malwares are catching your keyboard input.

Are you a victim of European card fraud transactions? Contact us know in the comments section below. 

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