Point redemption scam

Credit Card is plastic money issued by banks and credit card companies, which allow you to spend now and pay later. The number of people using credit cards is on the rise. The main reason behind the rise in usage of credit cards is interest-free credit and also various offers, discounts, and reward points. These offers and reward points help credit card users save a lot when spending through credit cards. Need to track the points record that how many points have been earned and how to redeem the earned point in the appropriate manner 

Reward points or loyalty points are offered by almost all banks and credit card companies to promote the usage of credit cards. As mentioned earlier, reward point users can save a lot of money and even win attractive gifts. These reward points are provided to card users whenever they spend using credit cards. While these reward points help customers save money, they can also be used to cheat them of their hard-earned money.

Yes, fraudsters are cheating credit card users in the name of reward points on credit cards. A lot of innocent people have fallen victim to this fraud and lost hard-earned money in the greed of getting reward points on their credit cards.

Fraud comes in many forms. When a criminal seizes control of another person’s legitimate account, that’s called account takeover (ATO) fraud. Then there’s synthetic identity fraud, which is when a criminal combines real and fake information to make an account. That’s in contrast to regular identity fraud when a criminal steals a person’s real information to make a fraudulent account. While these types of fraud often get attention, there is one fraud vector that frequently flies under the radar: loyalty program fraud.

How to stay away from this fraud:-

1. Never share your card number, card expiry date, CVV and OTP with anyone over the phone.
2. Always remember that banks or credit card companies will call, asking you to provide card details and the OTP to redeem credit card points. Usually, rewards points are always credited to your card automatically, when you spend using your credit card.
3. Never share your credit card PIN with anyone.
4. In case of any fraudulent transactions with your credit card, report to the bank immediately.