Phishing and credit card fraud: How to recognise the signs and respond effectively

We are in our digital finance era. Payments cross borders instantly, investment portfolios can be managed remotely and financial services are available 24/7. 

Phishing and credit card fraud are not new threats to those of us dipping into digital finance, but the cyber -criminals behind them are getting more creative. Even the most experienced digital users are getting tripped up.

Staying safe is not about technical expertise, but vigilance, and a clear path for responding when something doesn't look or feel quite right is critical. 

This guide serves up a structured overview of today's risks and actionable steps to identify and respond to phishing attempts and credit card fraud. 

Phishing: no longer just spam

Phishing has progressed far beyond promises from Nigerian princes or threats to leak your non-existent nudes. Today, we're dealing with visually flawless and psychologically engineered communications.

Convincing email scams are landing in inboxes, legitimate looking SMS alerts have phones pinging and links are leading to cloned websites that remarkable resemble official sites.  Phishing attempts are even sliding into your DMs with your name and personal details. If it wasn't so insidious, we'd be impressed. 

Modern phishing combines technology with behavioural manipulation and its success depends on one thing: that the unsuspecting victim will click a link before they think.

Credit card fraud seems old-school in comparison, but it has also accelerated.

Cyber-criminals have worked out how to obtain card information without ever seeing the physical card. Data can be compromised via retailer data breaches, intercepted online transactions, malware-infected devices and more. 

Understanding these evolving methods of getting your card information is the first step toward effective protection.

Phishing becomes easier to detect once you know what to look out for. The following techniques are the most prevalent and effective methods used by attackers today.

Email phishing

Email remains the most common attack vector due to its efficiency and reach. When scrolling through your inbox, keep a look out for some of these phishing tricks and proactive fixes. 

Check the sender's address

The first thing to check is the email sender's address. Attackers use addresses that appear legitimate at first glance, such as support@swisquote.com or security@swissquote-secure.net. Maybe there's a typo, maybe there's a tweak to the domain name.  Verifying the sender's address is a golden rule. 

Impersonal greetings

Look out for impersonal greetings such as "Dear customer". This can be the sign of a mass phishing campaign where the bad guys are bombing out emails like schrapnel, hoping to hit some poor sucker along the way. Pay attention to what official communications look like from your financial service providers so you know when something looks a little different.

Threatening language or urgent demands

Urgent calls to action and threatening language are a cyber-criminal speciality. Triggering panic can provoke an immediate response from the digital user. Look for messages with language like, "suspicious activity detected" or "your account will be suspended in 24 hours". Official institutions don't use language like this to enforce compliance.

Attachments or forms

Be wary of unexpected attachments or forms. Reputable institutions will never send unsolicited attachments requesting login details or sensitive information. In fact, they often communicate regarding this exact point to keep their customers safe.

Embedded links

Links are the oldest trick in the book. Like the tweaked sender email address, malicious links often look like the real deal at first glance. Hover over the hyperlink to reveal where they're trying to lure you.

SMS phishing (smishing)

Smishing sounds cute but it's definitely not. This variety of phishing is via SMS and is highly effective as text messages can appear more credible due to their directness.

Common indicators of smishing include SMS messages requesting confirmation of a transaction, delivery notifications from unfamiliar senders containing links, messages instructing you to validate your account through a shortened URL and "security alerts" requiring immediate action.

Your bank's definitely warned you about this, but in case you missed or ignored it, we're doubling down: no financial institutions will ever ask you to access your account through an SMS link.

Voice phishing (vishing)

Those 3am phone calls aren't the 'you up?' type. Calls from unfamiliar or international phone numbers are one of the most obvious ways to identify a vishing attack. Whenever you answer the phone, you're immediately under pressure to respond to the requests of the caller, especially if they seem to be from an organisation you're familiar with. 

We can't say it enough. Your bank will never ask you for card details, passwords or verification codes over the phone. Never give out this information, even if you're being threatened with account closure. 

If you're in any doubt about the call you're on, explain to the caller you'll contact them via the main switchboard or official contact number. Banks and other institutions appreciate caution and will encourage you to do exactly that.

Social media and messaging platforms 

It makes sense that fraudsters would be sliding into your DMs. How to spot the scam? Look for messages offering promotions and giveaways, or from individuals claiming to be from a bank. Leave them on read. As cool as your bank might be, they're not going to be pinging you on social meeds to chat about investment opportunities or ask for your PIN.

Website phishing

Now, this is a tricky one. Cloned websites are cropping up left, right and centre, and it can be difficult to distinguish the fake from the real.

If you're doing something money-related online, always take a moment to confirm the website address matches the official domain name you're looking for (i.e. swissquote.com) and look for the https:// as this means your data is being encrypted. 

A good habit to get into is only accessing financial platforms via your Bookmarks, rather than relying on links.

Credit card fraud usually begins with an innocuous amount being taken from the account. It's like a tiny test balloon that allows the criminal to verify the stolen card details without triggering an alert from the bank account or cardholder. Next comes the big luxury purchase, or the dreaded account drain.

But how does it happen? Even if you're the most vigilant cardholder, your details can be compromised through the weakness of other systems. Credit card fraud isn't always the cardholder's fault.

How are credit card details stolen?

Data leaks and breaches are more common than you'd think, even with reputable retailers. For example:, Gucci, Louis Vuitton, Dior and Cartier have all experiences data breaches, with the private details of millions of customers compromised.

Then there's device malware. There are malicious programs that record every keystroke, so if you're tapping in your bank's web address, followed by log-in details and a password and there's malware lurking in the background, consider your details exposed.

Inserting your card at an ATM or payment terminal can also be a risk. Skimming devices can be attached to the machine, and will collect card data without the user noticing.

Free wifi is always a bonis, but be aware you're on an unsecured network. Consider everything is exposed, and never carry out financial transactions on public wifi.

Lastly, social engineering is becoming a popular tactic for getting people to reveal the information themselves. We're chronically online, and connecting with strangers has become normal. While you might have made a new BFF, you might also be being manipulated. If it doesn't feel right, it probably isn't.

Signs your card may be compromised

It's easy to see that credit card fraud can occur even when you're being vigilant. Keeping a watch on your accounts is the next line of defence. 

In addition to watching for test-balloon transactions, look out for charges from countries you haven't visited and retailers you don't recognise, or SMS codes for transactions you haven't initiated. If you see any of these, or get a notification for a declined transaction, it's showtime. 

Time is critical when you've been hit with phishing or fraud. First, cut the emotion out of it. Understandably, falling for a scam triggers some upset, but it's time for action. The faster you act, the more damage you can prevent.

Phishing attempts can be difficult to spot, but by following general rules of engagement, you can avoid them. Here are a few pointers: 

• Avoid interacting with the message. Never click links, open attachments, reply or attempt to unsubscribe.
• Verify independently. Visit the organisation's website directly or use the official mobile app. Don't use information or links provided in the suspicious message.
• Delete the message. Move that message directly to your trash folder to avoid accidentally interacting with it at a later date.

If you do click a link or provide information before realising it's a scam, here are your immediate actions: 

• Change your password. Be sure to use a strong, unique password you haven't used elsewhere.
• Re-enable or update two-factor authentication (2FA). This can block attackers even if they have your credentials.
• Contact the organisation's support team. They can monitor for any suspicious activity and secure your account.
• Monitor account activity. Watch for unusual signs, attempts to change personal data or unexpected transactions. 

If your credit card has been compromised:

• Block the card immediately. Most banking apps give you the option to temporarily freeze your card.
• Dispute unauthorised charges. Report the fraud to your bank quickly to increase the likelihood of reimbursement.
• Request a new card. Ensure the new card has a different number and CVV.
• Update recurring payments. Replace the card information for any subscriptions or services you use. 

You don't need to be a tech whizz to avoid being scammed. Incorporating a few consistent and sensible habits into your money-related moves will keep you and your accounts protected.

Use strong, unique passwords

If you've had the same password for more than a few months, or have a favourite password being used across multiple accounts, it's time to switch it up. And your dog's name followed by a 1 and ! isn't a strong, unique password. 

• Enable two-factor authentication. App-based authentication is more secure than SMS, and it's super easy to use.
• Download the updates. Software updates can be annoying but they're worthwhile. They patch vulnerabilities and significantly reduce risk.
• Avoid public wifi for financial activity. We all love free wifi in hotels and airports, but stick to doom-scrolling. Save your financial transactions for secured networks, or use a trusted VPN to encrypt your connection.
• Bookmark official websites. Never click links in emails or messages to access financial platform.
• Monitor card activity. Check regularly for suspicious charges.
• Enable real-time alerts. Instant notifications provide visibility of card activity.
• Take your time. Lightning speed is not advised. Slow down and pay attention when you're carrying out financial transactions online.

The content in this article is provided for educational purposes only. It does not constitute investment advice, financial recommendations or promotional material.