Credit cards are helpful instruments in doing seamless online transactions. They also help people tide over periods of low liquidity. However, along with the benefits that come with using credit cards, you also stand exposed to the risk of a credit card data breach.

Let’s examine the finer details of what a credit card data breach is. Also, we share some simple tips to help you protect yourself from any loss due to such events.

What is a credit card data breach & how it can impact you

The server at the merchant’s end may capture and store your credentials like name, date of birth, credit card number, card’s expiry date and CVV in an online transaction. A data breach happens when fraudsters use the server’s security loopholes to gain access to those credentials. The fraudsters then use the credentials for the following:

• Carry out unauthorised transactions in your accounts
• Open fraudulent loan accounts in your name
• Use phishing and other techniques to extract further details to carry above transactions

How data breach impacts you

First things first, do not panic for two reasons:

• Banks have multiple layers to protect highly sensitive data like CVV etc. So, the probability of hackers getting hold of those details is relatively low.
• As per RBI guidelines, you have zero liability on data breaches as a customer if the negligence was due to the bank.

The impact depends on the details compromised, as follows:

• Basic details like name, address, e-mail ID: Fraudsters can try a phishing attack on you to gather sensitive details like OTP, CVV etc.
• Sensitive details like CVV: Fraudsters can carry out actual transactions on international websites that can cause you financial loss.

Simple tips to protect yourself from credit card data breach

Below are some simple action tips to help you remain one step ahead of fraudsters and protect yourself from credit card data breach:

• Do not share personal information like OTP, CVV etc., with anyone, even if the person requesting it seems totally genuine.
• Explore digital insurance as it covers losses from data breaches.
• Don’t forget to set limits on your credit cards for domestic and international transactions. It can be very quickly done on the internet banking portal of your bank.
• Keep credit cards and bank accounts to the minimum so that you can monitor the transactions regularly and easily.
• Ensure that instant transaction alerts are active on your accounts.
• Check your credit report periodically for fraudulent loans or credit cards issued in your name.

Conclusion

You cannot afford to be complacent about the changing fraud dynamics in today’s digital world. The tips shared above provide strong protection from such frauds. However, if you notice an unauthorised transaction on the account, you need to immediately report it to the bank. Doing so will save you from further loss and any negative impact on your credit score.