With advancing technology, new methods of transacting business keep on coming up. This sparks growth and development not only to the nation as a general but also to the individual. One of the most common cashless modes of payment is the prepaid debit cards. They are not a new thing to most wealthy upscale folks. They’ve even made way into the middle-class. However, prepaid debit cards have occasionally been the target of fraud which begs the question; are they indubitably safe and as convenient as they supposedly are claimed to be?
Getting The Card:
- Getting a prepaid credit card is relatively easy. No credit checks will be done, and you can easily get a general purpose card. The monthly fee is additionally manageable. Thus, even when one doesn’t have access to regular credit or banking facilities, they still are eligible to get this card.
- After you have got your card, you enjoy the freedom of paperless or rather cashless transactions. You feel you are at par with technology, and the digital world seems to be suddenly part of your life. You can shop at various outlets that accept credit cards with ease without worrying that you might not have carried enough cash in your pocket.
The Card Fraudsters:
- The only real danger in having a credit card is falling prey to fraudsters. Credit cards offer criminals an easy target to the clients’ money without the usual strict security of banking systems. This can have terrible effects on your finances.
- Usually the fraudster will pose as legitimate creditor. You will unknowingly give them the details of your credit card as you purchase the card or recharge your account. This is the information that they will use to make withdraws from your card. Other antiques used by fraudsters are the fraudsters call. In this situation, you will get a threatening call telling you that unless you make payment to a particular account, your utility company will terminate its services to you. Once you have made the payment, the criminal will simply walk away rich from your hard earned cash.
- It is not easy for governments and law enforcement to curb this crime. This is because fraudsters are quite crafty. Once a prepaid company puts measures to arrest one from of credit card scam, another almost always comes up. The former always better and more cunning than its predecessors.
- Credit card fraudsters can take any form. They will pretend to be revenue collectors demanding that you pay your taxes via the credit card. Others may masquerade as officials from immigration, and they threaten you with deportation or arrest if you do not pay. Basically they target a utility that is so dear to you that you won’t think twice about paying them. Consequently millions of money are lost by victims each year.
- The information on the prepaid card packaging can be stolen by the fraudsters. Once you have recharged your card account, the criminal will spend the money faster than you can. Therefore, you need to truly watchful for you not to become a victim of this.
Protection Measures Being Implemented to Curb the Menace
The government working together with law enforcers is, however, working hard to see to it that these crimes are brought down to non-existence. It is not easy, but nothing is being spared to see to it that this comes to a stop.
Prepaid credit card issuers are also helping by making sure they avoid identity theft cases at all costs. They are asking more information about the person who is applying for the card.
This is compared with the information given by data suppliers. They are also closely monitoring usage of the card. Warning signs that they look for include rapid withdrawal of money that is loaded from multiple locations.
All in all if you are considering a perfect way of making purchases without having to walk around with cash, prepaid credit cards are an excellent idea.