In photo: Credit Card Association Philippines warns the public about the rising cases of credit card fraud

By Victoria “NIKE” De Dios

Since the time of the pandemic, the inevitable dependence of the people in using the technology for various transactions grows by leaps and bounds. But coupled with the growth is the danger of accelerated cybersecurity attacked that made many users vulnerable.

Such was the case with a high-ranking government official’s recent experience, where a hacker used his card to purchase a million pesos worth of food via a food delivery service. Similarly, a credit card phishing scam was investigated late last year in Cebu city, wherein the credit card information of a 53-year-old businesswoman was stolen and used to purchase medicine from a networking group. 

These incidents are alarming, but not surprising, as the higher dependence of Filipinos on digital transactions makes it easier for fraudsters and scammers to find targets, especially among those who are new to the virtual space. 

Rising fraud in the cyberspace

According to the Credit Card Association Philippines (CCAP), the pandemic caused payments to shift from card-present (CP) or face-to-face transactions to card-not-present (CNP), such as remote payments and other digital payments. This saw a significant increase in CNP fraud during the pandemic, being 29% higher from April to November of 2020 compared to the same period in 2019. 

“Fraud happens more often in cyberspace, given that it is easier to facilitate there. It does away with the need to secure a physical card, and more importantly, it is a safer option for the fraudsters because of the anonymity that the internet provides,” said Alex Ilagan, Executive Director of CCAP. 

Prevalent types of fraud

One type of fraud that is prevalent in the new normal is called an account takeover. This involves acquiring a physical card or its details along with the cardholder’s one-time-password (OTP) to complete online transactions. Scammers and fraudsters normally use social engineering to deceive cardholders into giving sensitive personal information and card details. These fraudsters usually pretend to be representatives of a bank, phone company, or even from a government agency. 

The growth of digital transactions have also contributed to the rise of phishing scams. One of the most popular phishing techniques is sending an email that looks like it came from the cardholder’s bank. These emails have subjects ranging from a new device log-in to a credit card upgrade, and their goal is to attain the cardholder’s card details and online banking credentials. Through the years, phishing emails have gotten more sophisticated, leading online users to continuously fall victim to them even if this type of fraudulent activity has been around for quite some time now. 

Avoiding fraud in 2021

Avoiding fraud in 2021CCAP and its partner banks have been working even harder in the new normal to educate cardholders about the current kinds of fraud, and how to avoid them. CCAP frequently shares simple but useful reminders to cardholders on their social media accounts, such as reviewing bank transactions regularly, being wary of which websites cardholders use their cards on, and other credit card fraud prevention tips.

CCAP also played a role in launching the Scam Proof website last year. Scam Proof is an online platform where cardholders can discover the different forms of fraud, learn about securing their accounts, and even talk about instances wherein they were scammed. Metrobank headed this initiative with the support of banks such as the Philippine Savings Bank, Rizal Commercial Banking Corporation, Citibank, and BDO Unibank, Inc.

More than just educating them, CCAP and banks do their best to protect cardholders through various authentication processes. “The banking industry has established a process to make each transaction as safe and seamless as it can be. Multi-factor authentication has become the standard authentication. During transactions, the authentication process also kicks-in. Certain profiles, patterns, and behavior are continuously checked so customers can have a secure and worry-free banking experience,” Ilagan shared.

Despite all this, cardholders must remember that protecting their accounts is a partnership that they have with their banks. They must do their share in avoiding credit card fraud, and it starts with simple things such as never sharing their account details through messaging apps and social media, as these could be used by hackers and fraudsters. Writing PINs and passwords is also discouraged, as they can fall onto the wrong hands. Cardholders who stay up to date on the latest types of fraud are also at an advantage, as being aware makes it easier to spot any suspicious activity be it through emails, calls, or other channels.

The best advice for cardholders to avoid fraud? “Never share your credit card details, PIN, card security code, or online banking credentials with anyone. Banks will never ask cardholders to disclose these details. Additionally, If you ever receive a notification on suspicious activity, or are in doubt of whether or not you may have accidentally shared your banking details with anyone, call your bank immediately,” Ilagan stressed.

For more information on credit card fraud and the ways to prevent it, you may visit CCAP’s website.

Holiday shoppers and merrymakers usually indulge in shop-till-you-drop attitudes. After the holidays, the is the time when one realizes the financial burden.

All the festivities, gift-shopping, and reunions made for a busy season – one that lifted people’s spirits but may have drained their bank accounts. This is why it is important to get your finances in order as the year kicks off. 

According to Alex Ilagan, Executive Director of the Credit Card Association of the Philippines (CCAP), “Prioritizing your credit card expenses is a great first step in being financially responsible.”

“Every cardholder should be accountable for their finances no matter how big or small their debt is. Unsettled card balances can lead to issues in the future. They should be strategic in both using their card and dealing with debt, especially because it can help them make smart financial decisions all year round.”

Here are five tips from CCAP that can help you manage your card, especially after the holidays:

1. Review all your due dates and create a timeline for payments

Before you settle your card’s balance, make sure you know what you’re paying for, how much you need to pay, and when you need to pay. Once you know all of this, allocate a part of your budget to pay your credit card. Setting reminders and creating a timeline for your payments can also be helpful, especially if you have multiple credit cards. Don’t miss out on your payment dates to avoid a penalty for paying late. 

1. Check your accounts online via mobile applications 

Always check your transaction history to keep track of your spending and to monitor any suspicious activity. You can easily do these once you download your bank’s mobile app. These apps are here to create a more convenient banking experience for you as it speeds up checking of your balance, making transactions, and verifying your history. 

1. Settle your debt as soon as possible

Don’t wait for due dates. Once you have money, be it from your salary or from other ventures, put aside what you can for the payments you have to make. You should also be strategic in allocating money, which means prioritizing more urgent payments first and avoiding unnecessary expenses that can add to your debt. As much as possible, try to pay your outstanding balances in full. This may be challenging, but it helps you avoid paying interests and manage your finances better in the long run. 

1. Communicate with your banks

Banks can help you learn proper credit card usage and go about any debt you have. You shouldn’t be afraid to approach them for any questions or concerns regarding your credit card. For example, if paying your balance in full proves to be difficult, you can call your bank for balance transfers and debt consolidations. Depending on your situation, this allows you to pay the balance in installments and control the interest you’ll be paying. Always remember that your bank is there to offer assistance with your account.

1. Don’t take debt lightly

A seemingly small debt can easily become something that you’ll have to pay off for weeks, months, or even years. Keep in mind that your credit card isn’t ‘free money,’ and make sure that you can pay back whatever you swipe your card for. 

These are just some tips to help you become a more responsible cardholder. As long as you manage your credit card, honor your financial commitments, and address debt properly, your holiday spending won’t create any problems in your finances. 

“Proper management of one’s debt is just one aspect of being an effective credit cardholder. CCAP believes that these tips are simple efforts that Filipinos can follow to help them spend right and keep their accounts in good standing,” Alex emphasized.