Birla Sun Life Top 100: INVEST :: Business Line

Here's how you can outsmart credit card thieves

Credit card thefts are expensive. Take simple precautions to minimise the extent of damage in case of your identity theft.

Credit card or debit card thefts done by cloning personal identities of cardholders have become a common occurrence these days. These thieves use skimming machines to copy credit card data of cardholders, use spy cameras inside ATM centres to pick up PIN number of card users and transfer money across bank accounts in India.

In more recent cases of such thefts fraudsters used a similar technique of cloning the credit card details of cardholders using torn credit cards.

In this age of technology, credit card thieves are getting smarter with the help of sophisticated machines and cameras. But have you become smarter and more cautious?

Most of us want to shop fast. We give the card to the vendor, sign the receipt and take our stuff. But the smiling salesman who swipes the card might just swipe your bank balance by copying the card and the PIN number.

Following simple precautions while using credit or debit cards can protect you from credit card fraudsters employing sophisticated technology and your gullibility.

Here is a rule book you should follow to outsmart credit card fraudsters.

The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.

1. Sign up: As soon as you get a new credit or debit card, sign up on the back side strip in exactly the way you usually sign.

2. Shopping frequently? Use your credit card, instead of a debit card, for frequent transactions with newer or small vendors.

3. Eating out often? Make sure that the restaurant vendor swipes the card in your presence only.

4. Tear it into pieces: Credit statements, ATM slips, customer copy of card transactions shouldn't be seen by unknown persons and should be shredded into tiny pieces before they go to the dustbin. If you are moving places, make sure you get the address updated in the bank records, so that the card statement doesn't reach your old address.

5. Stay connected with the bank: Register your mobile number and the e-mail ID with the bank right away. Most banks will send an SMS alert as soon as any transaction is being done.

Why absolute savings matter :: Business Line

Picture this. You want to replace the stabiliser for your air conditioner. A store near your house retails the product for Rs 3,500. You can get the same product from a store in the neighbouring locality for Rs 2,750 and, thus, save Rs 750 or around 20 per cent. Will you travel to the neighbouring locality to buy the cheaper product?

If you are a typical individual, chances are you will buy the cheaper product. As humans, we like bargains. But here is the problem. Suppose you are buying an air conditioner and a stabiliser, the store near your house charges Rs 40,000 whereas a store in the neighbouring locality offers the same for Rs 39,250. Will you now drive to the neighbouring locality to buy the cheaper product?

You will most likely rationalise that saving less than 2 per cent on the air conditioner may not be worth the ride in traffic. Your behaviour would seem illogical to economists. The money that you save is money that you can use for your household expenses. How does it matter whether you save Rs 750 buying only the stabiliser or both the air conditioner and the stabiliser? The problem is that we do not think in absolute terms. We compare savings of 20 per cent with savings of 2 per cent. This behaviour can lead us to make systematic errors.

India Infrastructure Finance Company Ltd - Tranche I || Subscription level - EOD - 18.10.2013

India Infrastructure Finance Company Ltd - Tranche I
Issue Dates: 03-10-2013 to 31-10-2013
Bond Subscription Levels - @5.00pm - 18.10.2013  (11th Day)
Category	Overall Issue Size (No of Bonds)	Subscription		Collection Amount (Rs. in Crs)
		No. of Tax Free Bonds	No of Times : Overall Issue  size	TOTAL	for 10 Yrs	for 15 Yrs	for 20 Yrs
					78.06	255.24	107.05
I   (Institution)	37,50,000	2,00,000	0.05	20.00	Coupon Rate:8.01%; 8.38% & 8.50%
II  (Corporate)	50,00,000	14,51,322	0.29	145.13
III (Individual -HNIs)	62,50,000	27,52,145	0.44	275.21
IV (Individual -Retail)	1,00,00,000	43,34,475	0.43	433.45	90.55	137.89	205.00
Total	2,50,00,000	87,37,942	0.35	873.79	Coupon Rate:8.26%; 8.63% & 8.75%

Power Finance Corp Ltd || Subscription level - EOD - 18.10.2013

Power Finance Corp Ltd - Tranche I
Issue Dates: 14-10-2013 to 11-11-2013
Bond Subscription Levels - @5.00pm - 18.10.2013  (4th Day)
Category	Overall Issue Size ( No of Bonds)	Subscription		Collection Amount (Rs. in Crs)
		No. of Tax Free Bonds	No of Times : Overall Issue  size	TOTAL	for 10 Yrs	for 15 Yrs	for 20 Yrs
					448.87	903.96	1208.32
I   (Institution)	58,13,800	36,00,000	0.62	360.00	Coupon Rate:8.18%; 8.54% & 8.67%
II  (Corporate)	77,51,800	1,22,32,977	1.58	1223.30
III (Individual -HNIs)	96,89,800	97,78,401	1.01	977.84
IV (Individual -Retail)	1,55,03,600	66,58,078	0.43	665.81	117.22	151.17	397.42
Total	3,87,59,000	3,22,69,456	0.83	3226.95	Coupon Rate:8.43%; 8.79% & 8.92%

NHPC Ltd - Tax Free Bonds || Subscription level - EOD - 18.10.2013

NHPC Ltd - Tax Free Bonds
Issue Dates: 18-10-2013 to 11-11-2013
Bond Subscription Levels - @5.00pm - 18.10.2013  (1st Day)
Category	Overall Issue Size ( No of Bonds)	Subscription		Collection Amount (Rs. in Crs)
		No. of Tax Free Bonds	No of Times : Overall Issue  size	TOTAL	for 10 Yrs	for 15 Yrs	for 20 Yrs
					131.40	526.16	785.97
I   (Institution)	15,00,000	42,00,000	2.80	420.00	Coupon Rate:8.18%; 8.54% & 8.67%
II  (Corporate)	20,00,000	63,26,256	3.16	632.63
III (Individual -HNIs)	25,00,000	39,08,900	1.56	390.89
IV (Individual -Retail)	40,00,000	17,23,880	0.43	172.39	21.65	35.61	115.11
Total	1,00,00,000	1,61,59,036	1.62	1615.90	Coupon Rate:8.43%; 8.79% & 8.92%