How To Prevent Credit Card Fraud in Singapore

This was originally posted on Planner Bee.

Being a victim of credit card fraud is like getting caught in a sudden downpour without an umbrella: it’s unexpected, inconvenient, and can leave you feeling rotten. In our digital age, where hawker centres accept e-payments and MRT rides are just a tap away, the threat of credit card fraud has become an even more pressing issue.

26% of consumers in Singapore have expressed strong apprehension about fraud occurrences . This growing anxiety reflects the increasing prevalence of fraud cases in Singapore and emphasises the need for effective preventive measures and heightened consumer awareness.

In Singapore, there have been growing instances of people engaging in fraudulent transactions using stolen credit card details, making it even more important for us to know how to prevent it.

Just as we’ve navigated our way through ERP gantries and circuit breaker measures, we can tackle this too. In this article, we’ll explore the various ways to prevent credit card fraud in Singapore and ensure your financial life remains as smooth as a Kopi O on a Sunday morning. So, grab a kaya toast, sit back, and let us dive deeper into secure financial practices.

Cyber Security Agency Report

Singapore has experienced a rise in fraud due to the surge in digital transactions and online shopping. In 2023, the Cyber Security Agency of Singapore (CSA) noted an increase in phishing attacks targeting credit card users.

Criminals breached telecom operators in other countries to learn the equipment IDs of victims’ mobile devices. They then altered the location data to intercept one-time passwords sent to bank customers, which, combined with stolen credit card details, enabled them to carry out fraudulent transactions.

Here are some practical tips to keep your credit card information secure and your finances safe.

Ensure two-factor authentication (2FA)

Two-factor authentication, or 2FA, adds an extra layer of security to your online accounts by requiring your password, and a second form of verification. This is important in a tech-savvy place like Singapore, where online transactions are the norm and cyber threats are ever-present.

Why 2FA matters

• Enhanced security: By adding an additional step, 2FA makes it significantly harder for cybercriminals to access your accounts, even if they have your password.
• Protection against phishing: Phishing scams are common in Singapore. 2FA can protect you because even if you inadvertently provide your password, the scammer won’t have the second factor necessary to gain access.
• Peace of mind: Knowing that your accounts have an extra layer of protection allows you to engage in online activities with greater confidence.

Setting up 2FA

For banking apps:

• Activate through your bank’s app: Most Singaporean banks like DBS, OCBC, and UOB offer 2FA through their apps. Go to your account settings and look for security options.
• Use SMS OTPs: Many banks send a One-Time Password (OTP) to your registered mobile number for every transaction.

For online services:

• Google and Apple IDs: Secure your email and app accounts by enabling 2FA in the account settings. These services typically offer OTPs through SMS or an authenticator app.
• E-commerce sites: Popular platforms like Lazada and Shopee offer 2FA options. Activate these in your account settings to secure your shopping.

Using an Authenticator app:

Apps like Google Authenticator, Microsoft Authenticator, and Authy provide time-based one-time passwords (TOTP). Simply link your accounts to these apps and use the generated codes for the second verification step.

Read more: Bad Habits to Avoid With Your Credit Card

Set notification to S$0.01

One effective strategy to keep your credit card transactions secure is to set your notification threshold to $0.01. This means you will receive an alert for every single transaction, no matter how small. Here’s why this simple step can make a big difference in safeguarding your financial health.

Why set a S$0.01 notification threshold?

• Immediate awareness: By receiving a notification for every transaction, you can immediately spot any unauthorised activity. This is especially useful in identifying fraudulent transactions quickly and enables you to take swift action.
• Track all spending: Even the smallest purchases add up. With alerts for every transaction, you can keep an eye on your spending habits to help you manage your budget more effectively.

How to set up notifications

For banking apps:

• DBS, OCBC, UOB, and others: Most major banks in Singapore provide customisable notification settings through their apps. Go to your account settings, find the notification preferences, and set the threshold to S$0.01.
• SMS or email alerts: Choose to receive alerts via SMS, email, or both. This ensures that you’re notified instantly, no matter where you are.

For online services:

• Credit card issuers: Many credit card companies provide this feature. Log into your online account or mobile app, navigate to notification settings, and adjust the threshold accordingly.
• E-wallets and payment services: Platforms like PayPal, GrabPay, and others often allow similar settings. Ensure you’ve enabled the lowest possible threshold to stay informed.

Keep your card within sight while paying

This simple practice can prevent potential fraud and ensure your financial security. Here’s why it’s important and how you can implement this habit effectively.

• Prevent card skimming: Skimming devices can be easily attached to payment terminals.
• Avoid card switching: In some cases, fraudsters might switch your card with a similar-looking fake card.
• Monitor transaction accuracy: Keeping an eye on your card helps you verify that the correct amount is being charged.

Tips to ensure your card stays in sight

Whenever you’re dining out, choose to pay at the counter instead of handing your card to the waiter. This way, you can watch the transaction being processed and ensure your card information stays secure. Additionally, in places that accept mobile payments like Apple Pay or Google Pay, use these options to further safeguard your card details.

When shopping at retail stores, consider using self-checkout stations. This enables you to keep control over your card throughout the payment process. If you need to hand your card to a cashier, be observant and watch as they swipe or insert it into the terminal. Make sure they return your card immediately after completing the transaction to prevent any potential mishandling or misuse.

Just like you wouldn’t let your kaya toast out of sight at breakfast, don’t let your card wander off during a transaction!

Lock for overseas use until you travel

Credit card fraud is most commonly reported when travelling abroad or when unauthorised online purchases are made. A practical way to protect yourself is to lock your credit card from international transactions until you need it. Fortunately, most banks in Singapore offer this feature on their websites or mobile apps.

To lock or unlock your card for overseas use, follow these simple steps:

• Visit your bank’s website or mobile app: Log in to your account through your bank’s official website or mobile application.
• Navigate to card settings: Look for the option to manage card settings or security features.
• Lock / unlock overseas transactions: Select the option to lock or unlock your card for international use. This setting can usually be toggled with a simple switch.

It’s a straightforward step that adds an extra layer of security to your finances.

There you have it: your ultimate guide to keeping those sneaky credit card fraudsters at bay.

These tips will ensure your financial security stays strong. Remember, vigilance is key. A few simple precautions can go a long way in safeguarding your hard-earned money. Now, go forth with confidence knowing you are doing what you can to protect your credit card details.