While contactless and mobile payment methods like PayNow, Apple Pay, and Google Pay are common modes of payment, there are still instances where paying over the phone is necessary. Whether settling a tuition fee or purchasing a small business or phone support line, phone-based credit card transactions remain part of everyday life for some.

That said, making payments over the phone carries risks, particularly in terms of fraud. Unlike in-person or online transactions, phone payments offer fewer ways to verify the identity of the person or business on the other end. This makes them inherently more vulnerable to scams or unauthorised charges.

If you have no choice but to pay by credit card over the phone, you should remain vigilant and know how to protect yourself.

» Check this out: How to minimise the risk of credit card fraud

Phone scams remain a serious concern in Singapore, with approximately 51,501 scam cases reported in 2024, resulting in an estimated loss of S$1.1 billion. While many scams are linked to fraudulent investment opportunities, credit card scams are still alarmingly common. 

Unlike contactless or digital payments that use biometric verification or encrypted chip technology, over-the-phone credit card transactions depend entirely on trust. There's no way to visually confirm the caller’s identity or verify the legitimacy of the merchant, making it easier for individuals to be more vulnerable to fraud.

Fraudsters often pose as representatives from banks, telcos, or government agencies and will request sensitive credit card details, such as:

• The name that appears on your card

• Credit card number

• Card expiration date

• Card security code or CVV

Organisations like ScamShield and ScamAlert.sg have repeatedly issued warnings about these impersonation scams. Therefore, staying vigilant and informed is key to protecting your financial information.

» Check this out: How to dispute fraudulent credit card charges

Know how you can mitigate the risk of credit card fraud

If you experience credit card fraud through a phone transaction, it's crucial to understand the steps you can take and the protections available to you. That way, you’re better protected when you use your credit card.

As a consumer in Singapore, your rights are safeguarded under the Consumer Protection (Fair Trading) Act. Since credit cards are considered financial products, you’re entitled to dispute fraudulent transactions or statement discrepancies with your card-issuing bank.

Additionally, banks are required to notify you if a transaction exceeds a certain threshold or appears suspicious under guidelines from the Monetary Authority of Singapore (MAS). You’ll typically receive a Transaction Alert via SMS or email, which helps you quickly identify any unauthorised activity. If you receive such an alert, contact your bank right away to report the issue and block your card if necessary.

On top of this, Visa and Mastercard offer Zero Liability policies, which means you won’t be held responsible for unauthorised charges made using your credit card or account details. However, this comes with a caveat that requires you to report them promptly and not have acted negligently.

Another important point to remember is that credit cards offer stronger protections than debit cards. Since credit card payments draw from your bank’s credit rather than your personal funds, your money isn’t immediately deducted. This buffer provides you with valuable time to identify fraudulent transactions and take corrective action before any financial damage occurs.

By staying alert and acting quickly, you can significantly reduce your exposure to credit card fraud and minimise potential losses.

» Check this out: What to do when dealing with credit card fraud for the first time

How to prevent credit card fraud on the phone and online

You can take several practical steps to stay safe when paying with your credit card online or over the phone.

• Only share details when you initiate the call: Never give out your credit card information to someone who calls you unexpectedly, even if they claim to be from your bank or card provider. Scammers often impersonate legitimate institutions. To stay safe, only provide payment details to businesses you’ve contacted directly, and always verify that you’ve dialled the correct number before proceeding with any transaction.

• Confirm the details before ending the call: Since you can’t see what you’re purchasing over the phone, it’s essential to clarify the exact charge and its purpose. Ask the merchant to repeat the total amount and provide an order confirmation number for reference.

• Keep a close eye on your account: Check your credit card statements regularly to identify any unauthorised or unusual activity. For extra vigilance, consider checking your account right after making a purchase to ensure the correct amount appears as a pending charge.

• Make use of your card’s security features: Many credit cards offer tools like real-time alerts and the ability to temporarily lock your card. These features can help prevent or limit the impact of fraudulent activity if your card details are compromised.

» Check this out: Discover how to stay safe from fraud