This is why the Credit Card Association of the Philippines (CCAP) cautioned credit cardholders to be extra vigilant particularly during these “BER” months or the fourth quarter when fraudulent transactions tend to be the highest during the year.

“The holiday season is not just a busy time for shoppers but also for fraudsters, as consumer spending is in full swing. Many are so busy with shopping that they fail to scrutinize the fraudulent charges made using their credit card or the higher volume of transactions in their billing statement until it’s too late,” said Alex Ilagan, executive director of the 16-member association of credit card issuers in the country.

According to CCAP, fraudulent credit card activities via remote and other digital payment channels have significantly increased in the country due to the growing acceptance of digital payment channels and the increasing popularity of artificial intelligence (AI) tools and platforms. “Scammers continue to employ various modus operandi such as creating genuine-looking spam emails, SMS, and fake websites that can capture their personal data, and other means to deceive credit cardholders,” said Mr. Ilagan.

CCAP also advises cardholders not to disregard transaction verification messages sent by card issuers and heed warnings on not sharing one-time passwords (OTP) and the card verification value (CVV) over the phone during their shopping spree.

To guard against fraud, “cardholders must immediately report their lost or stolen card,” he added. Some banks have also introduced security features that enable customers to lock or unlock their credit cards using their mobile apps so they can regain control of their account quickly in case their cards have been stolen, hacked, or blocked.

“Combating financial crime is a shared responsibility so we need everyone’s cooperation in our continuous fight against these progressive fraudsters,” said Mr. Ilagan.

While there is the potential for fraud, using a credit card for holiday shopping is still the best option considering the promos, rebates, and double rewards points being offered by various card issuers, he added.

CCAP has been running its #FightBudol campaign focused on consumer protection and regulations, tips and reminders to avoid credit card fraud, and consumer rights and mechanisms for reporting fraud. “Combating financial crime is a shared responsibility so we need everyone’s cooperation in our continuous fight against these progressive fraudsters,” said Mr. Ilagan.

For more information about CCAP’s credit awareness programs, visit CCAP’s website: ccap.net.ph or follow the CCAP Facebook page, fb.com/CreditCardAssocPH.

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