Crime Prevention Advice

Credit Card Fraud

Advice for Financial Institutions

  • Use a more secured method to deliver credit a card to a cardholder, such as a designated courier service or registered post;
  • Alternate the card / PIN delivery cycles and do not use standard envelopes that could be easily differentiated from ordinary mail;
  • Re-confirm cardholder's address and availability before sending out the credit card and its PIN;
  • Implement Post-Delivery Card and PIN Activation;
  • Maintain IT System Integrity and safeguard customers' information from unauthorised persons; &
  • Conduct regular audits on card security measure at points of sale.

Advice for Cardholders

  • Always acknowledge receipt of your new credit card via a phone call or written note to the card centre. Make sure that you sign on the reverse of the credit card before using it. This is to prevent the card from being abused by credit card fraudsters;
  • When choosing a Personal Identification Number (PIN), avoid the use of personal details such as your name, initials, date of birth, staff ID number, telephone number or vehicle number. Do not use consecutive numbers such as 12345, which could be easily cracked. Do not disclose your PIN to anyone. Always memorize your PIN and do not write it down;
  • Keep all your credit card transaction slips for the month in a safe place as they contain important information. On receipt of the monthly statement from the bank, check the items listed on the monthly bank statement promptly against the transaction slips. If there is any indication of fraudulent abuse of your credit card account, report it to your card centre immediately;
  • Try to avoid giving your credit card number to non-reputable establishments and those that do not offer a customer warranty, especially via mail-order, telephone and the internet, unless the website is fully secured. If the website requires you to disclose personal information, check and ensure that you are comfortable with the site's privacy policy; otherwise, do not proceed with the transaction;
  • Call the bank immediately if your credit card is lost, stolen or if you suspect someone else may be using it;
  • Call your bank immediately if the new or replacement card you are expecting does not arrive after a reasonable period. Once you have received your new card, cut up your old card and return it to the card issuer. If you have switched from one issuing bank to another, contact the bank that issued it and asked them to close your account. About a week later, call the bank to ensure the account has been closed;
  • Always notify your bank immediately of any change of your address to ensure your replacement card reaches you and not fall into the hands of a credit card fraudster. Use a mail-redirection service if you are going overseas. Secure your letter-box lid and clear your mails from your letter-boxes regularly to prevent theft of your credit cards. Also notify the bank of any change of your email or telephone number so that the bank could contact you to verify a transaction; &
  • Guard yourself against identity-theft by safeguarding your personal information. Be wary of spoofed emails and fake websites that request for your personal and financial information on the pretext of account information updates or security verification. Under no circumstances would banks send you an email asking you to reveal your PIN or any account specific information.

Advice for Merchants

  • Look out for unusual orders - e.g. Customers requesting for split sales (splitting sales amount to lower amounts to avoid suspicion, or having no regard for price or quality of goods and demand for immediate delivery;
  • Be wary of delivery to a non-permanent or unusual address - e.g. Hotel, restaurant, postal-box, vacant address or unrelated third party;
  • More than one credit card number provided, especially if the earlier card accounts are rejected;
  • If in doubt, merchant should request customer to provide the three-digit CVV2 (Card Validation Value 2) printed at the back panel of a credit card for verification with the bank;
  • If the customer provides a signed authorisation or a copy of his identity document, please verify it with the relevant authority, if in doubt.

Related Links

Merchant Outreach Programmes 2007

FAQs On Credit Cards And Counterfeit Currencies

Last Updated on 21 April 2016