Scam activity has continued to rise in recent years. Scams are getting more advanced and targeting more Australians in more ways. One of the most common methods of scam exposure is via phone call. According to ABS Personal Fraud data, 48% of exposures to scams occurred over the phone. At Bendigo Bank, we’re here to support you in staying safe from scams, and helping you to identify when something isn’t right.
Should you use your credit or debit card over the phone?
It’s wise to be cautious when handing out any personal information over the phone, whether that’s your name and address, or your credit card information. Using your credit or debit card over the phone may increase your risk of becoming the victim of a scam. If your card details end up in the hands of a scammer, your money can be at risk very quickly.
But sometimes using your card over the phone is necessary. Paying via card over the phone can be perfectly legitimate. For example:
- If you’re making an invoice payment or transacting between small businesses;
- Dealing with a venue that requires a security deposit or prepayment;
- Or even dealing directly with a billing department over a specific billing issue.
How to minimise risk when using your card over the phone
Here are some important things to remember when sharing your card details over the phone:
Only provide card information if you initiated the call. Never give out card details to someone who called you, even if you’re almost certain it’s a legitimate request. Always ask if you can call back, either directly or by being reconnected to the right department. If the caller expresses resistance to your request, it could be a sign they’re a scammer.
- Take steps to independently confirm legitimacy. Before you give out your card details over the phone, take steps to verify that you’re speaking with a legitimate business or provider, and whether over the phone card payment is a legitimate request. Sometimes a quick Google search can alert you to new scam.
- Check whether you really need to pay over the phone. Ask if there are alternative ways to pay. Vigilance around scams is much more common than it used to be. So many businesses will understand if you’re not comfortable paying over the phone and may offer alternative methods of payment.
- Never provide your passcode. When making a payment over the phone, you will never be required to read out a one-time passcode that has been sent to your phone or email. If you are asked for this information, this is an indication that it is a scam.
What to do if you suspect you have engaged with a scammer
As soon as you discover something isn’t right, limit your card usage using card controls in the Bendigo Bank app or via e-banking. You can limit further transactions on your card or block it completely. Then, contact us immediately on 1300 236 344. The sooner you contact us, the sooner we can take steps to protect your accounts.
Discover more information on protecting yourself from scams.
Remember to Stop, Think and Protect
Stop– before you make a quick decision, stop. Could this be a scam? Scammers benefit from rushed decision making.
Think– what are the red flags here? Why have I been contacted? How can I verify this is legitimate?
Protect– act quickly if something feels wrong. Contact your bank for support if you’re transferred funds. Report the scam to Scamwatch.
Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circ*mstances. You should consider whether it is appropriate for your situation.
FAQs
Should you receive a call from a company that you're considering doing business with, ask to call them back on at a phone number that you have confirmed is legitimate. Use a credit card when paying over the phone, not a debit card. In general, credit cards offer much better fraud protections than debit cards.
Is it safe to say your credit card number over the phone? ›
Protecting credit card details is crucial to prevent financial loss and protect personal information. Sharing sensitive information, such as the card number, expiration date, and CVV, over the phone can expose individuals to significant risks.
What is safer to use credit card or debit card? ›
Credit cards often offer better fraud protection
With a credit card, you're typically responsible for up to $50 of unauthorized transactions or $0 if you report the loss before the credit card is used. You could be liable for much more for unauthorized transactions on your debit card.
How to use safely debit and credit card? ›
Do sign your card on the backside, immediately on receipt from the bank. Always erase the 3-digit CVV number on the backside of the card. Memorize it for your use. Do not share your Credit / Debit Card numbers, PIN number with anyone, not even with the bank officials.
Is it safe to put your credit card on your phone? ›
Are mobile wallets secure? Yes, storing a credit card on your phone is secure. In fact, a primary benefit of credit cards is that they are already a more secure payment method than cash or check, and mobile payments take that to the next level — it's one of the most secure ways to pay.
Can my debit card be scanned while in your wallet? ›
Similarly to card skimming, card scanning is a type of payment card theft where the fraudster with a scanning device gets close enough to your bag or wallet to scan your card number. This type of fraud is enabled by the fact that today's payment cards typically work on Radio Identification Frequency (RFID) technology.
Is it safe to give debit card number and CVV over the phone? ›
Use reputable websites when shopping online. Don't provide your CVV when using your credit or debit card in person. Don't make payments over the phone with your credit card, unless you make the call directly and know it's a trusted vendor. Scammers have been known to cold-call victims to perpetrate financial fraud.
Is it bad to keep credit cards by your phone? ›
Will my cell phone demagnetize my credit cards? It's worth knowing that the magnetic field on your phone is located in your phone's speaker. In general, the magnetic field on your phone speaker is too weak to cause too many problems. So it shouldn't cause any damage to the magnetic strip on your credit card.
What if someone knows my debit card number and CVV number? ›
You can lose your entire savings if your debit card falls into the wrong hands. With just your card number and CVV number, someone can use your card without permission to make any payment online. It's, therefore, essential to keep your physical debit card at all times and make sure no one can access its information.
Why does my debit card keep getting hacked? ›
Criminals may also be able to access your debit card information through a process called card skimming. Card skimming can happen anywhere — a shop, a restaurant, or an entertainment venue. People will utilize devices to capture card information, which they can later use to clone a card or make online purchases.
If someone has used your card in a store or online, you're covered under the Payment Services Regulations. This means you must be refunded immediately if you've had money taken from your account without your permission. Always report the loss of your debit card, or any unauthorised payments, as soon as possible.
What are 3 advantages of using a credit card over a debit card? ›
Credit cards help build your credit history. They offer rewards like cash back, miles or other rewards for your purchases. Offers better protection from fraudulent charges. When a fraudster uses your credit card, they are taking money from the issuer, instead of stealing directly from you and draining your bank account ...
Can someone access my bank account with my debit card? ›
Using a debit card opens up the possibility that the thief will gain access to the funds in your checking account. Protections are in place if a debit card has been lost or stolen and used fraudulently, but only if you notify your banking institution.
Can someone use my debit card without my PIN? ›
Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number. If you've used your debit card for an off-line transaction (a transaction without your PIN), your receipt will show your full debit card number.
How to safely use your debit card? ›
Debit Card Safety Tips
- Sign Immediately. ...
- Memorize Your Pin. ...
- Protect your cards as if they were cash.
- Take your receipt and save it. ...
- Report lost or stolen card immediately. ...
- Keep an eye on your card when doing a transaction. ...
- Check your bank statement to assure the amounts charged are what your authorized.
Absolutely. All card payments, including those taken over the phone, must comply with PCI regulations to ensure the security of the cardholder's data. Non-compliance can result in hefty fines and damage to your business's reputation.
Is it safe to give security code on debit card over the phone? ›
Sharing your CVV and debit card number over the phone is risky, even with legitimate businesses—because there is no way of confirming if the caller representing the company will expose the information provided.
Is it safe to put a debit card in your phone case? ›
Not just the speaker magnet, but most of the magnets inside phone cases and clasps are usually very weak. There's no risk of your phone case causing malfunction or demagnetizing your cards. This means that things like wallet phone cases and flip phone cases are safe to use alongside your credit card.
What should you not use your debit card for? ›
It is much better to use a credit card when making online purchases. 2) Restaurants. Consider this: your server often takes your card away to process your payment. While 90% of the time there is no problem, there is that 10% where the card is copied for their future use.
