How to Spot a Fake Credit Card?

The use of credit cards has surged during the pandemic, driven by a preference for online shopping to avoid crowded public spaces. However, this increased usage has also led to a higher incidence of credit card fraud, including forgery and scams. Nonetheless, there are measures to protect oneself from fake credit and debit cards. This article outlines common signs that can be monitored to spot a fake credit card.

What Is a Valid or Authentic Credit Card?

An authentic credit card is a valid card issued by a recognised bank or financial institution, providing the cardholder with a designated line of credit. To get a legitimate credit card, one must apply either through online channels, such as credit card provider's official website, mobile app, internet banking, etc. or in person by visiting a branch office.

When a cardholder makes a purchase using a valid credit card, the transaction undergoes processing through the credit card network, ensuring its legitimacy. The use of a valid credit card offers advantages such as cashback, rewards, air miles, and consumer protection.

What Is a Fake Credit Card?

A fraudulent credit card is a counterfeit card that is not issued by legitimate banks or credit card providers but closely resembles valid credit cards. The individuals responsible for creating these fake cards are often fraudsters who get your authentic credit card information and use it to generate a counterfeit card with a fake credit card number.

This enables individuals with fake credit cards to make purchases without the knowledge of the legitimate cardholder. Fraudsters and scammers typically obtain valid credit card information through credit card skimming, which involves the use of a small device that reads and stores your card details. Moreover, fraudsters may use a fake credit card number generator to replicate the front and back details of your authentic credit card.

Here Are the Common Signs to Spot a Fake Credit Card:

1. Spacing and Alignment of Numbers:

Upon close inspection of your valid credit card, you will notice that the numbers are uniformly spaced and meticulously aligned. In contrast, fake cards often have irregularly positioned numbers and uneven spaces between the digits. Fraudsters often use an aftermarket tipper/embossing machine that processes one number at a time, resulting in skewed numbers. Hence, it is advisable to examine the numbers for consistent spacing and alignment.

2. Identifiers:

Authentic credit cards have specific initial digits in their numbers, serving as identifiers for the card issuer. The leading card issuers and their respective initial digits are as follows:

Visa: 4

Mastercard: 5

American Express (Amex): 37 or 34

RuPay: 6

Certain fraudsters overlook these details and create fake cards that lack alignment between the card issuer's logo and the initial digits of the card number. Hence, verifying the card number and the alignment between the card number and the corresponding issuer is advisable.

3. Missing or Misplacement of CVV:

The card verification value (CVV) is a security feature found on the majority of debit and credit cards, designed to minimise the likelihood of fraudulent digital transactions. RuPay, Mastercard, and Visa mention this three-digit code on the back of debit and credit cards, typically positioned above or within the signature strip. If the CVV is missing, there is a potential indication that the debit or credit card may be fake.

4. Expiry Date:

Typically, a debit or credit card has an expiration period of 3 to 5 years from its issuance date. If a recently issued card has an expiration date that has already passed, is approaching very soon, or extends well beyond 5 years, there is a likelihood that it is counterfeit. Therefore, it is recommended to verify the card for a valid expiry date.

5. Hologram Sticker and Signature Strip:

Authentic debit and credit cards feature a hologram sticker with the issuer's brand, demonstrating their legitimacy. These holograms, typically three-dimensional, can be located on the front or back of the card. If your card has a lacklustre, two-dimensional, or impaired hologram, it can be a fake credit or debit card.

Likewise, the presence of a signature panel or strip on the card's back is essential for validating its authenticity. If this strip is not composed of material distinct from the card, there is a potential that the card is fake.

6. Damaged Magnetic Strip or Chip:

Fraudsters generally modify, scratch, or remove the magnetic strip or chip from fake credit cards. A damaged magnetic strip or the absence of a chip makes the cashier manually input the card number into the terminal for processing the fraudulent transaction. This helps the fraudsters avoid swiping debit or credit cards at the counter.

7. Card Number on the Receipt:

If the card appears authentic, there is an additional factor to examine for the verification of potential fake debit or credit cards. Conduct a transaction with your card and subsequently compare the last four digits of the card number displayed on the card with those printed on the transaction receipt. If the digits do not match, there is a likelihood that the card is fake.

How to Protect Yourself from Fake Credit Cards?

Exercising caution when using your credit card is crucial. If you have doubts about the reliability of a service provider or perceive a risk in using your credit card for payments, it is advisable to avoid such transactions. Only use your credit card at authorised payment gateways to minimise the risk of fraud.

It is important to regularly review your credit card statements to stay vigilant. Since you may not be aware if someone is using a fake credit card with your valid card information, keeping track of transactions is essential. If any suspicious activity appears in your account statement, report it to the credit card provider immediately.

Furthermore, report any lost or stolen credit cards immediately by contacting the credit card provider's customer service. This helps notify them of potential fraudulent activity on your credit card account.

Enhance your online security by using strong and unique passwords, especially for credit card transactions. Fraudsters can copy credit card information online, so using a unique password adds an extra layer of protection.

Protect your valid credit card from fraudulent activities by keeping it in a secure location and refrain from sharing its details with anyone.

Avoid providing your credit card information over the phone or email. Fraudsters often pose as credit card companies to obtain card details and create fake credit card numbers. Be vigilant and protective of your card details and avoid sharing them with anyone claiming to be a card issuer.

To conclude:

Spotting a fake credit card is essential for safeguarding yourself against credit card fraud. You can avoid potential credit card fraud by spotting a fake credit card and being vigilant for unauthorised purchases and fraudulent activities.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.