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Credit Card Fraud in UAE

Credit Card Fraud in UAE

As per a recent report published by KPMG UAE in 2020, approx 83% of companies are experiencing an alarming rise in cybercrime attacks through phishing, email spams, malware etc. The “Credit card fraud” is also one such offense which has become a prominent method for swindling money. It is a white collar crime wherein the money is withdrawn from the bank account of a person deceitfully with the use of his credit card.

In this article, we will explore the various methods by which this offense is committed. Further, we will also delve deep into the protection measures and the punishment for this offense.

Common Method for Credit Card Fraud

There are various methods by which this offense took place. The chief among them are discussed below-

  1. Lost or stolen cards:
    Most often, it is observed that the fraudster gets his hand on a credit card through theft. In such instances, the fraudster use the card information to withdraw money or for other online transactions
  2. Counterfeit or fake cards:
    This is one of the modern methods wherein the card related sensitive information is captured in the magnetic strip attached to the card when it is swiped. The fraudsters use devices such as “skimmers” to get such sensitive information.
  3. Phone scams:
    This is the most common type of fraud and a large number of people fall prey to this. The fraudster makes a phone call to the user and obtains sensitive personal information like OTP, CVV, etc from him. The person making such calls represents themselves as a member of the technical team of the bank and forces you to share such confidential information with them.
  4. Phishing scam:
    It is also known as “joining the dot” scam as the fraudster makes random emails to a large number of people and asks for their personal information, such as their date of birth, full names, address details etc. With the help of these details, the fraudster tries to gather as much as the information to execute the act.
  5. Application Details:
    In this method, the fraudster tries to get a new credit card with your personal information, such as id proof, residential status, etc. They also forge your signature for this purpose.

How to protect yourself from Credit Card Fraud?

  • At the very outset, if you are a victim of credit card fraud, it is essential to notify your bank immediately. The bank will block the card and disable further transactions from your account. This step is also very important from a legal perspective as it allows you to claim legal protection from other responsibilities associated with the card.
  • Keep your PIN and online transaction password confidential. It is also advisable to change them frequently. Further, you shouldn’t use the same password on different platforms. For further protection, you can also add “security question” before completing a transaction.
  • Enable the transaction alert on your phone, so that each and every single transaction came to your notice. Further, it will allow you to monitor and track the payment status.
  • You should check your account statement on a regular basis as it will help you to skin through any unfamiliar transaction in a timely manner.

Punishment for Credit Card Fraud in UAE

Since it is a fraud, it is punishable under Article 399 of the UAE Penal Code. This Article imposes a punishment of an imprisonment not exceeding 2 years, or a fine not exceeding 20,000 AED, or both.

Further, this Credit Card is also punishable under Article 13 of  UAE cybercrime law. The imprisonment for the same ranges between 1 month to 3 years, and a fine not exceeding AED 2 million can be imposed on the fraudster.

In Short

There are various methods by which this credit card fraud can be committed. As a prudent man, one should keep all the financial sensitive information such as CVV, password, etc very confidential. However, if one still falls prey to this fraud, it is strongly advisable to notify your bank and institute a police complaint immediately.

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