Malta recently took spot number five on the list of countries with the highest rate of credit card fraud. This means that Malta citizens are now among those with the highest risk of becoming credit card fraud victims.
Who is susceptible to credit card fraud in Malta?
Credit card fraud is a major problem in Malta with around 34 people affected by the crime per 1,000 citizens. So, who is the most at risk of experiencing credit card fraud? The best way to understand this is to take a look at why fraudsters commit credit card fraud in the first place.
The most common reason that credit card fraud occurs is money laundering - criminals use stolen credit cards to hide their real IDs when laundering illicit funds. This is done in an attempt to avoid the transactions being traced back to them.
As a result, those most at risk of becoming victims of credit card fraud are individuals who do not take the necessary steps to protect their credit card information or detect fraudulent activity early. This could include consumers who shop through unprotected websites, users who store their credit card details on laptops or mobile phones and even users who log in to their online banking through a public WiFi connection.
Some say that everyone who owns a credit card is at risk of fraud in one way or another. Therefore, all credit card users should take precautions to ensure that their details don’t fall into the hands of criminals.
How does credit card fraud impact your life?
The impact of credit card fraud depends on the severity of the fraud that was committed. If spotted early, you may simply have your card frozen. However, in more extreme cases, credit card fraud could cause you to lose large amounts of money which can be difficult to claim back. Below is a brief overview of the different ways that credit card fraud could affect you:
Credit history
Credit card fraud could seriously impact your credit history by leaving big gaps of debt or unpaid credit under your name. This could make it difficult to apply for further credit in the future or to apply for other financial help. For example, mortgage lenders often look at credit history to decide whether or not to grant mortgage loans. If a fraudster leaves you in debt that cannot be paid off, you may struggle to make yourself seem eligible.
Credit card fraud could seriously impact your credit history by leaving big gaps of debt or unpaid credit under your name.Credit score
The fallout of credit card fraud may also impact your credit score. A credit score measures how good you are at managing credit. You can generally check your credit score using companies such as Equifax, Totally Money & more. A low score is typically taken as a sign that a person cannot be trusted with a loan and will lower your chances of being accepted into future financial schemes.
Fraudulent activity can show up in credit reports which can cause your score to decline. That's why it’s important to report potential fraud and ensure your credit card provider is aware as soon as you notice that it may have occurred.
Mental well-being
One consequence of credit card fraud that often goes overlooked is the impact on a person’s mental well-being. Credit card fraud can be incredibly stressful, leaving card users with heaps of debt to pay off or a long fraud investigation to go through.
Financial stability
If fraud is detected, credit card users can usually claim back any money that has been stolen. However, if fraud is not detected, credit card users can be left with a debt that could affect their financial stability. It can be difficult to balance huge debt repayments with everyday expenses, which can lead to a cycle of debt that could last a lifetime.
How to avoid credit card fraud in 2023
Credit card fraud could have a severe impact on your life. So, what can be done to prevent it? The easiest way to minimise the risk of fraud is to use credit card fraud detection practices to help you to notice potential fraudulent activity before it’s too late. Here are a few ways that you could detect credit card fraud in 2023.
Make sure your card provides security features
It is a good idea to check that credit card networks offer adequate security measures before using them. The best networks should include several security features such as Address Verification Service (AVS), 3D Secure (3DS), Data Encryption and Card Verification Value (CVV).
Some payment networks may not include all security features because this can slow down the payment process. Nevertheless, consumers should be wary of networks that don’t conduct any security checks when a payment is being placed.
Check your financial statements regularly
All credit card providers should send out regular financial statements to users. These statements will provide details of all transactions that have occurred through your account over a specific period. By checking these statements regularly, you may be able to spot potential credit card fraud. Fraud could appear as an unusual payment, a payment that was made in a strange location or as an unauthorised transaction. If you do notice potential fraud, contact your credit card provider immediately.
Suspicious login attempts
One way that a credit card provider may alert you to potential fraud is by flagging suspicious account login attempts. These alerts mustn't go ignored as they could be a sign of an attempted account takeover. Your credit card provider may consider a login attempt suspicious if it has been made from a location that is different from the location that is linked to your account, if the user has incorrectly guessed your account password multiple times or if the login was made from a hidden IP address via VPN like CyberGhost.
If you receive a suspicious login attempt alert, it is a good idea to take a look at your financial statements, update your account passwords and contact your credit card provider to seek advice about the next steps.