How To Secure Your Transactions Against Scam

 

If you were given an option to choose between using card or cash to pay for your purchase, how would you swing?

Given the popularity, ease of use and convenience of cashless transaction, your choice of favouring card could be obvious and somehow understandable.

Needless to say, global economies thrive on cashless Transactions.

Governments worldwide daily  encourage their citizens - both corporate and individual - to carry less cash and prioritize electronic use in conducting their businesses and expenditure.

However, we are talking about YOU and what's safe for you.

We are concerned about which practice or method best serves your own security needs and shields you against risks of fraud.

In simpler terms, between using card or cash, which one has greater capacity to protect you against scam?

To be part of this discussion, here are relevant linked subtopics for you:

• Common Attractions of Card For Making Payments:
• How Scammers Can defraud You Through Payment Cards
• 9 Ways to Successfully Leverage Cash to Avert Scam :
  
• 12 simple scam-,proof card payment tips
  

       

Poser: 

Is it even possible to exclusively use one method without the other?

Obviously, in today's texhnology-driven processes, policies and procedures, it's hardly feasible or conceivable to do so.

The safe bet and reasonable practice would be a blend of the best of both formats to ensure secure transactions.

To get us started, let's try to understand in greater details what exactly the issues on our table involve.

In our context, by card options we are referring to Credit and Debit cards

Let's distinguish between the two.

With Debit Cards you are drawing money directly from your own savings or deposits in your own bank account, meaning you can't spend beyond what's available in it.

On the contrary, when you utilize Credit Card to buy or pay for anything, you are not expending your own money.

Rather, you are making use of your access to a line of credit which a bank has issued to you.

In layman's terms, what this means is that a credit card enables you to borrow money from a financial institution or a bank for the following purposes:

• making purchases

• transfering balances 

• withdrawing cash up to a certain approved limit

Briefly, Credit Card types include:

• Standard card  (basic credit line + zero annual fees)

• Premium card (higher fees +  concierge services and airport lounge access benefits).

• Balance transfer card ( on low introductory rates, for card-to-card debt transfer ).

• Secured card (no spending limit, mandatory initial  deposit as collateral + monthly payment of entire balance in full).

• Reward cards ( awards redeemable points, miles, cash back to offset cost of gift cards, purchases, flights,  travel expenses, etc).

Common Attractions of Card For Making Payments

1. Operational Convenience: 

Cards are very popular owing to a number of factors. Some of these include the fact that they are highly  convenient to handle, as well as being easy to carry and use.

2. Global acceptance: 

Another attraction is that cards are widely accepted as valid mode of payment.

Most companies or businesses readily demand and accept  card transactions or payment types as a matter of institutional policy,  as against cash.

3. Makes It Easy To Track Spending: 

Also, cards attract acceptance because of their electronic verifiability.

That suggests that you can see all your transactions online and easily track your expenditure with ease.

4. Rewards And Cashback Benefits: 

Again, unlike cash, some cards command popular patronage because of the benefits they offer to users.

Some of these rewards include  cashback, points, miles, etc, which can cumulatively be reddened to offset costs.

5. Enhancing credit  Scores:

Additionally, consistent use of card for transactions can assist you to improve your credit score or rating.

This, of course, will absolutely depend on your ability to consistently render timely payments on your loans.

6. Operational Speed: 

Likewise, the appeal of credit and debit cards is also rooted in the smoothness of their payment operations.

As a matter of fact, their transactions are usually quick and facilitate efficient completion  of purchases.

7. Facilitates Precision & Conclusive  Payments:

Moreover, card use has another advantage.

For example, cash payments often create challenges of outstanding change.

However, cards enable paying without worrying about change, because it makes exact payments.

8. Essential For Online Spending:

When it comes to online transactions and shopping, Cards are necessary tools.

Indeed, they are  indispensable requirements for payment.  

9. Indispensable For International Travels: 

Cards are very important and indispensable for individual or corporate journeys.

They are useful particularly for international travels,  because they resolve issues of currency dynamics, while also offering competitive exchange rates and convenient payment options.

10. Renders Digital Receipts:

Cards also render automated digital records or receipts in respect of all your expenses.

This will assist you to track your spending and stayinh within the confines of your personal budget

Advantages Of  Cash Payment Method. 

1. Anti-Scams Benefit:

 To a considerable degree, it's more secure when you pay by Cash for services or purchases.

This is because you   will be free of worries over your financial information being compromised or stolen.  

2. Zero Online charges: 

With cash, you will not have to pay electronic or bank charges, or  owe interest on cash purchases, etc.

That saves you some substantial money in the long run.

3. Enhancing Personal Budgeting:

 Paying in cash also boosts personal budgeting efforts.

Since you can easily track how physical money leaves your wallet, this reinforces your ability to stick to your budget.

4.  You Are Free From Overdraft Fees: 

When you go shopping with cash in your wallet, you simply can't spend beyond what you have on you.

That means that you won't be able to overspend and consequently won't have to worry about overdraft fees.

5. You Have More Control:

Using the cash method to settle bills or transact enables you to have better control over your spending habit.

The more you see money exiting your wallet, the more sober and conscious you become.

6. Free From Risk Of Card Skimming:

Cash payments are not susceptible  to financial risks, such as skimming, and other forms of scam associated with cards.

7. No Risk Of Cloning: 

Unlike cards, cash cannot be cloned.

This suggests that, where the option of cash is available, it offers a more secure mode for transactions.

8. Offers Merchant benefits: 

Contrary to common fixation with electronic payment through cards, some business owners or practitioners actually prefer to be paid in cash.

Common reasons for this is their morbid distrust of electronic cash procedures and scam risk.

I know people in my country who reject money transfers due to fear of being  scammed and will accept nothing except cash.

As it turns out, it is beneficial for both the merchant and innocent customers. 

9. No Expiration: 

Unlike cards which usually have tenure deadline, I have never seen legitimate cash that expires.

This assures you that it remains a very reliable, secure, and trustworthy form of payment. 

10. Simple And Transparent: 

Similarly, there's absolutely nothing complicated about Cash transactions.

It's a straightforward process and involves no intrigues like passwords, account details, etc. 

11. Not Debt-Based:

Unlike use of credit cards, when you pay in cash you are directly utilizing your own money and not borrowing from any financial institution to pay.

As a result, you can't become indebted or accumulate debts on account of your expenses.

12. Anonymity Factor:

Dealing in cash actually offers confidential status which card processes lack.

It's strictly between you and the merchant, and your transactions remain  anonymous to 3rd parties. 

13. Finality Of Transactions: 

With cash, the moment you make payment, it's curtain time for that particular process.

To clarify this point, once you hand over money to the merchant, that transaction is completed.

Nobody can come up later to ask for any outstanding  payment or fees, unlike what scammers can do where card payments are involved. 

 Side Effects of Using Cash in Transactions:

1. Limited Acceptance: 

To start off, it's not everyone who approves of cash payments.

As a matter fact, most businesses  do not accept cash. Such bodies favour  card and electronic payments in line with their official financial policies,  especially in respect of online transactions.

2. Zero Purchase Protection: 

Similarly, cash transactions are usually cut-and-dry. 

Lacking any form of complexity and ambiguity,  they tend to be conclusive and final.

As such, there's hardly any protection or legitimate grounds for compensation or retrieval in the event of stolen goods or when something goes wrong. 

3. Lacking Rewards:

Expectedly, unlike credit card payments, cash transactions offer no incentives.

Bottom line: they don't offer rewards or bonus.

4. Susceptible To Loss or Theft:

Also, carrying physical Cash has security risks.

Money may get lost or stolen, and when that happens, it is  often irretrievable.

5. Inconvenient for Large Purchases:

Beyond a doubt, it's highly inconvenient to handle huge amounts of cash.

If you have to buy something very costly, you may find it quite unsafe and cumbersome having to carry large amounts of cash to make payment.

6. Lack Of Transactional Record: 

Unless you are the type who consistently keeps personal record of every purchase you make, buying with cash may not be good enough for accountability.

This is because it's common to neglect record keeping when it comes to using cash.

In effect, this can make it very difficult for you to track your spending.

How Scammers Can defraud You Through Payment Cards

Scammers have proven to be adept at exploiting electronic payment modes, credit and debit cards use, etc, in order to commit fraud.

Let's now examine some of the ways they can manipulate your card payments for purchases.

1. Card Cloning/Skimming:

 Debit and Credit Cards are easily prone to scam manipulation. 

For example, scammers can extract account details and info from them to commit fraud. 

They can achieve this through these two steps: 

Card Cloning, where they create an exact replica of the card via stolen card information, and Card Skimming, where they capture card details using devices installed on ATMs, gas pumps, or payment terminals.

2. Card Not Present (CNP) Fraud: 

This is a situation whereby a fraudster utilizes stolen card details to buy things online or make unauthorized phone transactions.

It doesn't require the physical card itself.

3. Phishing Attacks:

Cards are also open to scam influence.

For instance, users  could be tricked to reveal sensitive card details through fake emails or messages.

4. Fake Business Websites: 

Likewise, card information can be stolen, especially  when users innocently respond to counterfeit websites which, on the surface, appear legitimate.

5. A Man-in-the-Middle (MitM) attack:

This refers to situations whereby a scammer intercepts communication between two parties ( usually a user and a website ) to steal sensitive information, by:

•  hacking into the user's device or public Wi-Fi network 

• creating fake websites that pretending to be legitimate ones

• stealing card details, login credentials, or other personal data in the process

6. Social Engineering:

 Social engineering is a type of scam whereby a fraudster impersonates trustworthy individuals or organizations (e.g. bank officials,, merchants, etc).

By leveraging mostly psychological  rather than technical tactics, they seek to manipulate unsuspecting persons to divulge sensitive information like card details.

7. Corporate Database Breaches:

Moreover, scammers also target corporate databases by hacking into them in order to steal people's stored card information and perpetrate fraud.

8. Carding:

 Carding is a type of cybercrime by which scammers use stolen card details to test the validity and activity status of the cards. 

For example, they would make small transactions or initiate purchases on various online stores.

Using this method,  they can successfully

identify which cards are active and valid or not - for immediate and future fraudulent activities.

9. Account Takeover (ATO)

Cards can be compromised in yet another way.

I am referring to Account Takeover (ATO).

This can happen through scam activities such as phishing, password cracking, or other malicious means.

Its effects are quite serious, including:

• financial losses 
• identity theft
• account theft

10. Fake Card Number Generation:

Furthermore, credit and debit cards have other Achilles heels. 

By using specialized software, scammers can successfully generate fake card numbers which  pass basic validation checks.

11. Mail Theft:

Additionally, we should not forget that credit/debit cards can be stolen from the victim’s mailbox and used for unauthorized Transactions.

12. Transaction Interception via Malware: 

Again, fraudulent characters may infect your device through malware.

This enables them to capture card details while you are conducting online transactions.

13. Prepaid Card Scams: 

On a final note,  scammers may use stolen card information to buy prepaid cards, resell them or drain them as they please.

For ease of reference, prepaid cards are usually loaded with funds in advance and it's holder can purchase or expend up to the amount loaded on it.

Demerits Of Cards Payment Method

1. Overspending

Cards encourage overspending.

Since you are not dealing with physical cash but rather deferred payment, the temptation to keep spending can be quite overwhelming.

2. Interest Charges: 

In the event that you can't or fail to pay your balance in full, you'll have to pay interest on your purchases.

3. Fees:

 Depending on it's type or functionality, cards usually and typically come with various fees.

These include annual fees, late fees, foreign transaction fees, etc.

4. Accumulating Debt:

Again, if you mismanage credit cards, you may end up being saddled with accumulated debts.

This can happen if you can't pay back in full or with interest per month an amount you borrowed to make purchases.

5. Risk of Fraud:

As we explained earlier, cards are vulnerable to fraud.

For example, through cyber attacks such as card skimming or cloning, their information or details can be compromised.

6. Dependence on Technology: 

Also, it's necessary to emphasize the fact that card payment processes are strictly reliant on technology, which occasionally experience or generate errors or outages.

9 Ways to Successfully Leverage Cash to Avert Scam 

1. Always Have  Cash On Hand: 

You should make sure you keep cash available for spending, especially for small purchases and unexpected expenses.

This can help you to  keep track of your spending and avoiding scams.

2. Prioritizing Cash Spending To Stay True To Your Personal Budget:

It is easier to avoid overspending when using Cash than card.

You should therefore pay more using cash in order to enable you stick more actively to your budgetary provisions.

This will enhance your smart spending and Anti-Scam financial security.

3. Don't Carry Huge Cash Amounts:

In order to cut or minimize your loss in the event of theft or scams, make sure you avoid carrying large amounts of physical cash on you.

4. Safe Custody:

It's necessary to keep your cash in a safe place.

To protect your money against loss or thieves, you would need to lock it safely away inside a drawer, a secure wallet, or safe, etc.

5. Use Wallet /  Purse For Secure Cash Storage: 

Avoid stuffing cash in your breast or side pockets. 

Doing so is untidy and you are likely to lose some notes unknowingly as you pull them out.

Instead, properly organize your cash inside a wallet or purse. 

6. Be Street-wise: 

You should be security-conscious and street-wise when handling cash.

In other words, be mindful of your surroundings and watch out for  potential threats.

7. Prioritize Cash For Offline Merchandise

If you bought the item offline or if the merchant is physically available, ensure you pay in cash.

Doing so will not only equip you to avert scams, it also ensures that you're getting exactly what you paid for.

8.  Dedicated Cash-Only Budgets:

To forster your smart spending abilities and your  budgetary discipline, you may need to create a cash-only budget for certain expenses, such as entertainment or dining out.

9. Regular Cash Expenditure Reviews:

 On a regular basis, endeavor to thoroughly review your spending pattern and procedures.

This can assist you to improve on your ability to use cash more effectively and avoiding scams.

12 simple scam-,proof card payment tips

1. Create Very Strong PINs and Passwords:

Remember that your password is the only legitimate key that can unlock the gates to your account.

Therefore you must be strict and tough in protecting them.

Don't use easy-to-guess information.

Rather, devote time to create unique and complex PINs and passwords for your cards.

2. Protect Your Physical Cards: 

Preserve your cards carefully.

Store them in a secure location where third parties cannot find them.

Also, make certain you are not carrying sensitive information like card numbers and PINs around in your wallet.

3. Monitor Your Accounts Status Regularly:

Don't be caught napping but be sure to always be on your toes.

Monitor your accounts responsibly.

Check your account statements and transaction history regularly to that  there is no ongoing suspicious activity.

4. Prioritize Secure Websites: 

Verify that websites are secure before you buy anything on them.

You can ensure this by ascertaining it contains "https" in its URL and a lock icon in the address bar.

5. Avoid Public Wi-Fi: 

As a matter of priority, in order to prevent information theft, you should block out public Wi-Fi networks whenever you are conducting online transactions or accessing sensitive information.

6. Establish Two-Factor Authentication:

Reinforce your banks accounts with additional safeguards.

Make sure that you attach or enable  two-factor authentication (2FA) for all your card accounts, by so doing adding an extra layer of security.

7. Beware Of  Phishing Emails: 

Be very suspicious of emails or messages which  ask for your card information or login credentials.

Verify as best you can to assure yourself it's authentic.

If it's not, report it as spam, block it, avoid it.

Also, never click on suspicious links.

8. Patronize Secure Card Readers: 

Patronize ATMs or card readers you are confident are truly secure and not been tampered with.

For example, it's usually safer to use machines that are located within bank premises, since it's highly unlikely that scammers can have access to tamper with them.

9. Keep Your Card Information Private: 

Protect your card information.

Never share it with anyone, no matter how familiar they are.

Don't write it down or store it in an insecure location.

Make it your secret and yours alone.

10. Virtual Credit Card:

For greater scam-free smart spending, you may opt for Virtual credit cards (available via your bank platform  or mobile app) and digital wallets (such as Apple Pay or Google Pay).

These facilities enhance security by replacing actual card numbers with tokens and offering disposable card numbers. 

They securely store card information, utilizing encryption, and provide convenient, wide acceptance for transactions while protecting sensitive financial data.

11. Set Up Transaction Alerts:

Transaction alerts are very important.

They scream your attention to what's happening to your finances.

Therefore you should set up transaction alerts to notify you of any suspicious activity on your account.

12. Report Lost or Stolen Cards:

If ever you lose your card or it gets missing or stolen, don't waste time.

You should report the incident immediately to your card issuer (bank, etc) in order to prevent unauthorized transactions.

Conclusion

In summary, it is a fact that in today's business environment card or electronic modes of payment is highly popular and preferred. 

Arguments in its favour include its  high convertibility security features, rewards and cashback programs, to mention just a few.

However, in view of fraudulent activities of online scammers, we cannot but take cognizance of security benefits offered by Cash utilization.

Ultimately, as we have established in this article, in order to satisfy  anti+scam smart spending dynamics,  the path of wisdom is obviously to apply the best practices of both modes.