Last month Kingfisher Airlines was hit by Credit Card fraud to the tune of Rs.1.5 Crore. Modus Operendi was very simple. When the credit card was given for Bill Payment in ‘Time & Again’ Restaurant-an upmarket Restaurant in Andheri Mumbai, person preparing the Charge slip would memorize 3 digit ‘CCV’ printed on Signature panel of the Credit Card. 16 digit Credit Card No. is already available on copy of the charge slip. He would then pass on this info to his colleagues, who started a Travel Agency and would book Tickets online on Kingfisher Airline Website. These tickets were then sold at discount. Almost everyone on Blogosphere must be using Credit Card extensively and can be victim of this type of fraud.
IT IS VERY EASY TO PREVENT THIS FRAUD.
Please scratch out the last 3 digit printed on signature panel of your Credit/Debit Card, after noting it down at safe place as you would do for Online Log In username and Password for your bank account.
When Credit/Debit Card is used for any transaction in Shop or Restaurant, it is swiped and Machine reads data from Magnetic Strip. ‘CCV’ is needed only when online transaction is done.
A year ago, I had scratched out ‘CCV’ nos. from my Citibank and Standard chartered Cards and I have been using these cards for transactions of Rs. 250.00 to Rs. 21000.00.