Watch out for new credit card scams | Inquirer Business
FightBudol advocacy

Watch out for new credit card scams


Fraudulent credit card activities via remote and other digital payment channels have increased by 21 percent in the Philippines since the COVID-19 pandemic erupted as customers shifted to remote and other digital payments to deal with mobility restrictions, according to Credit Card Association of the Philippines (CCAP).

CCAP, comprising the country’s 18 major credit card players, thus rallies member-issuers behind its ongoing #FightBudol campaign, strengthening the advocacy toward responsible use of credit cards and enhanced protection of cardholders.


CCAP marked Fraud Awareness Week on July 18 to July 22 by simultaneously mounting social media campaigns that aim to educate and raise awareness among Filipino consumers on fighting credit card fraud.


“Fraud cases have been on the rise due to the growing acceptance of various digital payment platforms, causing financial detriment to the industry,” says CCAP executive director Alex Ilagan.

CCAP advises consumers to watch out for these four modi operandi or new ways scammers or fraudsters exploit to lure their victims:


1. Surrendered cards scam: Here, the fraudster tricks the victim into surrendering the card by posing as a bank personnel and offering higher credit card limits and lifetime waiver of annual fees.

What to do: Never surrender your card to anyone. Banks will never ask you to submit your credit card for replacements or upgrades. Dispose of your old cards properly by punching holes on their magnetic strip or chip to ensure they cannot be reused by anyone.

2. Account takeover: This is when a fraudster calls up the customer service of the bank, aiming to gain access to a victim’s account. The fraudster will pretend to be the customer, try to answer all the positive ID verification and request changes on the account, such as mobile number and card delivery address. These changes are meant to intercept the one-time passwords (OTPs) sent by banks for e-commerce transactions.

What to do: Be alert and track bank notifications about any changes made on your credit card account. If you received such notification or OTPs for transactions which you did not perform, call your bank immediately.

3. Phishing, vishing and smishing: These are tactics to trick victims into divulging sensitive information. Phishing is done via email, vishing by phone and smishing via SMS. Fraudsters pretend to be from the bank and offer fake promotions, services or security verifications. Once the victim divulges card information, the fraudster can perform unauthorized online purchases.

What to do: Keep your card details (especially card verification value or CVV and OTPs) confidential, even from callers pretending to be from your bank. Banks will never ask for your CVV and OTP via a call, text or email links. If you accidentally divulged your CVV and OTP to a third party, call your bank immediately.

4. SMS spoofing: This is an advanced type of smishing fraud in which the fraudster is able to mimic and send fake SMS messages using the target bank’s actual SMS sender ID or name. Using SMS aggregators or gateways, fraudsters are able to trick victims into believing that the SMS legitimately came from the bank.

What to do: Do not click on unfamiliar links sent via SMS even if the sender ID seems to be from your bank. Your bank will never request for your CVV and OTP over SMS text links. If you get a text that seems to be asking for your credit card data, ignore it.

“Combating financial crime is a shared responsibility. Thus, we are enjoining everyone to help us in our continuous fight against these progressive fraudsters,” CCAP stresses. INQ

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Through its #FightBudolMovement campaign, CCAP and its members continue to educate their credit cardholders on how to fight fraud. For more information, visit CCAP’s website: or follow the CCAP Facebook page,, for more consumer tips.

TAGS: Credit card, scam

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