Card fraud has existed since the products first entered the market, but the way scammers attempt to gain information is changing.

While traditional credit and debit cards were also deemed easy targets for scammers, now another type of card is entering the fray.

People without bank accounts and in need of somewhere to store money are turning to prepaid cards, but this gives fraudsters another area to target.

It is therefore absolutely vital that personal information is protected as much as possible, in order to make it a lot more difficult for a fraudster to strike.

Protecting information

People should not be persuaded to give a large amount of personal information to those they could distrust.

However, certain details are required – such as name, address, date of birth – so it’s important to trust where a card is being purchased.

After all, a customer can rightly expect that the company will keep their details in a secure fashion and will not freely provide others with personal information.

The major factor is trust, but checks prior to purchase can test the legitimacy of any companies who are attempting to drive a purchase.

Not readily divulging details

If certain personal details are not required by the company in question then they should not be freely divulged.

That way, any one getting a prepaid card, or credit or debit one for that matter, can be safe in the knowledge that they have done their bit in the battle to prevent scammers.

In the event that something suspicious happens, the best course of action is to check online to see if there are similar examples – and then report them to the authorities.

Efforts are being made to protect people from scammers but it is also important that people protect themselves by taking care with their financial business.

Why consider a prepaid card

Unlike credit and debit cards, prepaid cards are not directly linked to a bank account, ultimately making fraudulent activity a lot more difficult.

Some cards also carry additional safety features such as chip and PIN, so it’s important to hunt around before choosing a certain card.

For those with concerns over their funds, transferring some to a prepaid card can also help to control spending, as only the specific sums on the card can be spent.

The cards can, however, be topped up if necessary and can be replaced if they are lost or stolen without funds being affected.