Card Fraud: How to Keep Yourself Secure

Written by
Aaron Oh
Last Modified on
August 7, 2025

Fraud drains as much as 5% of annual revenue from businesses globally, costing companies billions every year.

Card fraud hits close to home and weโ€™ve seen founders lose thousands overnight.

Founders managing corporate cards and expenses face constant fraud attempts, especially as you scale globally.

When every dollar counts and financial processes are still evolving, staying ahead of card fraud becomes critical.

What is Card Fraud?

Modern card fraud happens fast. Criminals use stolen card details for purchases, cash withdrawals, and account access, often without you knowing they've been compromised.

Some common types include:

  • Digital fraud: Criminals use stolen card information to make online or phone purchases without needing the physical card. This accounts for the majority of card fraud cases today, as digital transactions have exploded in popularity.
  • Physical card theft: Involves stolen or lost cards being used for unauthorized transactions. While chip technology has made this more difficult, it's still common, especially with contactless payments.
  • Merchant data breaches: Criminals hack into retailer systems to steal customer payment information. When you shop at a compromised merchant, your card details could end up in the wrong hands.
  • Phishing and social engineering tricks: Criminals pose as legitimate institutions to steal your card information through fake emails, websites, or phone calls.

A recent advisory from the Monetary Authority of Singapore (MAS) warned about criminals using sophisticated techniques to intercept card data during legitimate transactions. As fraud methods continue to evolve alongside our payment technologies, it's even more important that businesses and startup founders stay vigilant and take proactive steps to protect themselves.

How to Spot Card Fraud

The key to minimizing fraud damage is catching it early. Here are the warning signs you should watch for:

Unauthorized chargesย 

These might appear as transactions you don't recognize, purchases from vendors you've never heard of, or charges in locations where your business doesn't operate.

Suspicious vendor patterns

Be wary of duplicate payments to the same vendor, especially if the vendor name seems unusual or if you suddenly see multiple variations of a vendor name you normally use.

Off-hours activityย 

This should raise immediate concerns. If you see card transactions happening outside your normal business hours, especially for services that donโ€™t typically happen after hours, investigate immediately.

Rapid small transactionsย 

Criminals frequently make small purchases first to test if a stolen card works before making larger fraudulent transactions.

Unusual spending patternsย 

Spending that doesnโ€™t match your business needs or typical purchasing behavior needs immediate attention. This might include sudden increases in transaction frequency or purchases from entirely new categories of merchants.

How You Can Protect Against Card Fraud

Preventing card fraud requires a multi-layered approach that combines good personal habits with smart business practices.

For Cardholders For Business Owners
  • Protect your personal information like it's your most valuable asset.
  • Never share your PIN, one-time passwords (OTPs), or card details with anyone, even if they claim to be from your bank or card provider.
Legitimate institutions will never ask for this information over the phone or via email.
  • Implement approval workflows for all significant expenses.
  • Require multiple people to approve large transactions or purchases from new vendors.
A paper trail reduces the chance of fraudulent transactions going unnoticed.
  • Use virtual cards for online transactions whenever possible.
  • Generate separate virtual cards for different merchants to limit exposure.
  • Where available, use tokenized payment methods like Apple Pay or Google Pay for extra protection.
  • Set spending limits on all corporate cards.
  • Establish daily, weekly, and monthly limits that align with your business needs.
  • This contains potential damage if a card is compromised.
  • Enable two-factor authentication on all your financial accounts.
  • This adds an extra layer of security that makes it much harder for criminals to access your accounts even if they have your password.
Keep your security software updated and use secure networks for financial transactions. Avoid using public Wi-Fi for sensitive financial activities.
  • Use merchant locks to restrict where cards can be used.
  • If your business only shops at certain types of vendors, configure your cards to only work at those merchant categories.
  • Set up real-time alerts for all transactions.
  • Most banks and financial institutions offer instant notifications via SMS or app push notifications.
Real-time alerts can help you spot fraudulent activity within minutes rather than days or weeks.
  • Educate your team about fraud prevention.
  • Conduct regular training sessions on recognizing phishing attempts, secure payment practices, and proper card handling to prevent fraud incidents.
  • Monitor your accounts daily.
  • Check your account balances and recent transactions as part of your morning routine.
  • The faster you catch fraud, the easier it is to resolve.
  • Establish clear policies for expense reporting and card usage.
  • When employees know exactly how and when to use company cards, it's easier to spot irregular activity.
Regularly review your security settings and update passwords for your financial accounts.

How Modern Anti-Fraud Systems Protect You

Modern fraud protection works behind the scenes every time you transact.

Each time you swipe, tap, or pay with a virtual card, sophisticated systems analyze your transaction to keep you safe. Hereโ€™s whatโ€™s protecting you:

Real-time monitoring powered by machine learning analyzes every transaction as it happens. These systems learn your spending patterns and can instantly flag transactions that don't fit your normal behavior.

Suspicious activity, such as sudden location changes, duplicate charges, off-hour spending, can trigger an instant block before any damage is done.ย 

3D Secure authentication adds an extra verification step for online purchases. When you make a purchase, youโ€™ll be asked to confirm the transaction through your bank's app or with a text message code.

3D Secure authentication verifies the cardholder's identity with the card issuer during the payment process.

Virtual cards can be customized to specific vendors or even for single use, adding more layers of protection.ย 

If one card detail is leaked or compromised, your other cards stay safe, allowing you to contain risk without disrupting business operations.

Instant card controls allow you to freeze or unfreeze your cards instantly through mobile apps. If you suspect fraud, you can stop all transactions immediately while you investigate.

Something feels off? Freeze first, investigate later.

Chargeback is a dispute mechanism that allows you to raise a chargeback and recover funds if a fraudulent transaction goes through.

Always review your transactions and flag anything unfamiliar within your platformโ€™s timeline.

Human support allows you to escalate serious issues and offers advice in difficult situations like account recovery or investigations.

When fraud hits, speed matters. Having expert support ready makes the difference.

What to Do if Fraud Strikes

Despite your best efforts, fraud can still happen. Here's how to respond quickly and effectively:

  1. Secure your accounts immediately by freezing affected cards and updating your account passwords if necessary. Most banks and financial platforms allow you to freeze cards instantly through their mobile apps.
  1. Document everything by taking screenshots of fraudulent transactions and gathering any relevant information about when and how the fraud happened.
  1. Report the fraud to your bank or card provider immediately. Most financial institutions have 24/7 fraud hotlines and can guide you through the reporting process. Learn how to secure your account and report Fraud on Aspire
  1. Monitor your accounts closely for several weeks after an incident. Criminals sometimes use stolen information for multiple attacks over time.
  1. Update your security practices based on what you learn from the fraud incident. If criminals gained access through a particular method, make sure you're protected against similar attacks in the future.

Perfect security doesn't exist in today's digital world. Build systems that detect fraud fast and limit damage when it happens. With the right knowledge and tools, you can protect your business while focusing on what truly matters: growing your business and serving your customers.

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Aaron Oh
is a seasoned content writer specialising in finance, insurance and tech industries. With a writing history at S&P Global, EdgeProp, Indeed, Prudential, and others, Aaron leverages finance knowledge and business insights to help businesses improve productivity and performance.
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