How to prevent Credit Card fraud?

Nowadays, people are using "Plastic Cash" (credit card) to shop and pay for almost everything. With the ease of payment, comes with the ease of fraud. As a wise consumer, we should know how to prevent credit card fraud, thus safeguarding our "plastic money".

Credit card fraud is a serious crime which can cost you and credit card issuers huge losses. Credit card issuers have taken security measures to protect you against such possible frauds. However, you can also take the proper safety measures to avoid from being a victim of fraud.

Here’s what you can do to minimize your risk of being a victim of card fraud:

Safeguard your credit card

• Sign on your credit card immediately after you received it.
• Keep your credit card in the same place in your wallet or purse so that you will notice it immediately if it is lost or stolen.
• Do not lend your credit card to anyone.
• Do not provide your credit card details to an unknown party.
• Do not write down your PIN number on the back of your credit card or keep it in your wallet. Always memorize your PIN number instead.
• Keep the telephone number of your credit card issuer so that you can immediately report lost or stolen cards, unauthorized transaction or disclosure of PIN to a third party.
• Cut your expired credit cards into two when you get a new one.

Check your credit card transactions to avoid unauthorized transactions

• Check all details on the charge slip before signing or confirming the transaction.
• Keep all your charge slips and check it against your credit card statement as soon as you receive it.
• Notify your credit card issuer immediately of any error or possible unauthorized transactions and follow up in writing as soon as possible.
• Destroy all your charge slips before throwing them away.

Source: Banking Info

Fraudulent Insurance Claims and YOU

Recently, theStar highlighting a serious issue pertaining to insurance claims - Fraud Claims. It even started with staggering paragraph "Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims".

Among the issues:

• RM500 mil in bogus insurance claims are detected each year
• At least 2 insurance firms have folded as a result of high compensation claims compounded by fraud
• Insurance firms fight back by setting up special fraud detection units

Regarding to this topic, Finance Malaysia would like to shares some views here pertaining to the effects on Malaysians as a whole. And, most importantly, the impact of insurer would definitely pass it to people insured. Why I said so?

First, you must understand how insurance companies compute their premiums charged to each clients. If the insurer is financially stronger, it may charged a lower premium for the same amount of coverage on its policies. In other words, if an insurer is facing financial problems, it may raised its premium charged, even to their existing loyal customers.

If your friend is making a fraud case, let it be?

For example, one of your friend is making fraud claims by collaborating with a particular doctor and agent to issue a false physician statement. Subsequently, your friend could received compensation from insurance company based on that statement. Of course, you can closed one eye and let it be. But, your inaction would lead to higher claim amount being paid by that insurance company for the wrong reasons. If those act was rampant everywhere, insurance companies could raised its premium imposed. So luckily, if you're insured by the same company, you could be a victim of your friend's unlawful act.

Supposedly, we should advise whoever out there to stop making fraud claims as it may abuse the whole insurance systems. Objective of getting an insurance is to transfer our risk to third party, hoping that we could financially went through unfortunate events which may happened,  NOT to gain from an insurance.

Think about this:

What is the purpose of insurance?

Protection or Investment?