5 key measures that can help mitigate the risk of credit card fraud

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Also Read: Credit card consolidation: How to effectively pay off debt? Here are 6 key waysCredit card fraud has been on the rise globally, with billions of dollars lost annually to fraudulent activities. According to a report by Nilson, global card fraud losses reached $27.85 billion in 2019 and are projected to exceed $35 billion by 2025.

This alarming trend is driven by several factors, including the increasing sophistication of cybercriminals, the proliferation of e-commerce, and the growing number of online transactions.Cybercriminals employ various tactics to commit credit card fraud, such as phishing attacks, skimming devices, data breaches, and identity theft. These methods allow them to obtain cardholder information and use it to make unauthorised purchases or withdrawals.

The rise in digital payments and contactless transactions during the COVID-19 pandemic has further exacerbated the problem, as more consumers rely on online and mobile banking services.

Also Read: Don’t have a CIBIL score? Here's how a secured credit card can help you build itTo combat the escalating threat of credit card fraud, it is imperative to implement robust security measures that can effectively safeguard sensitive information. Financial institutions and businesses must invest in advanced technologies and adopt best practices to enhance the security of their payment systems.

Here are some key measures that can help mitigate the risk of credit card fraud:Multi-factor authentication (MFA) adds an extra layer of security by requiring users to provide two or more forms of verification before accessing their accounts. This can include something they know (password), something they have (mobile device), or something they are (biometric data).