Credit cards are a common sight in the modern world, and that’s not necessarily a bad thing. In fact, just like bank transfers, credit card transactions often have built-in protections against scams and fraudsters. Below, we will go over a few key features that can help credit cards keep clients safe, as well as rank some popular credit cards on the robustness of their security offerings.
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How Credit Cards Protect Against Fraud
Experian has an in-depth article on different protection features used by various credit card companies. For this brief overview, we have selected examples that represent some of the best factors to look for when deciding on the right credit card for your purposes.
Zero Liability Frameworks
The safest credit card companies provide zero-liability policies that protect consumers from exploitation. Essentially, the way this works is as follows:
- The con artist somehow gets hold of your credit card information.
- They make fraudulent purchases, racking up serious debt.
- You report the issue to the credit card company.
- The company absolves you of responsibility for the purchases, so that you do not owe money.
The transition from a simple magnetic stripe to microchip technology as the primary means of credit card transactions is almost complete. Most cards nowadays have the tell-tale chip embedded in them. It’s all about security. When you use a chip card, the software in the chip creates a one-time code for that transaction. In a way, it’s like encrypting each transaction on the fly, which makes stealing that information much more difficult than simply copying the identifying features of a magnetic credit card strip.
Alerts for Credit Scores
Some credit cards monitor consumers’ FICO scores. This is the number associated with your identity that relates to your creditworthiness. The higher the score, the more likely you are to be approved for loans, among other items. Through careful monitoring of your credit report, the company (or you yourself) may be able to spot suspicious transactions that are negatively impacting your overall credit. In these cases, the culprit might be some form of fraud.
Scanning the “Dark Web”
This one is only used, currently, by Discover. The card company patrols certain areas of the “dark” web, where ne’er-do-wells trade and sell private data. If the company detects your private information in these areas, it can alert you to the fact so that potential threats are quelled.
Some Top Credit Cards to Consider
The decision to go with a certain credit card is obviously a personal one, and you should always select the one that you are most comfortable with. However, we agree with Experian that the following cards might be good options to consider before you make your selection.
- Discover-It Cash-Back
- Capital One Venture Rewards
- Citi Double Cash
The reason that these three might be good choices are for the dark web monitoring services, the ability to freeze accounts on demand in case of suspicious purchasing activity, access to credit score change information, and even the use of virtual credit card numbers. The latter is a feature only offered by some card companies, and it allows you to use different card numbers for different online stores. While these are all tied, through secure back channels, to your actual account, they are only usable for those specific purchases and thus are much safer than using the account number itself.
At Bastion Balance in Korea, we stress financial literacy, wealth management, and risk avoidance when dealing with any investments, purchases, or debt consolidation. Currently, we have helped our clients amass over $1 billion USD in assets, and we don’t plan on stopping anytime soon. For information on our asset and wealth management services, contact our Seoul office.