In an increasingly online and digital native world, the risks associated with credit card fraud are on the rise in India. For customers, especially first-time users of credit cards, there may also be some anxiety over how to act quickly in case of fraud.
We explore a few quick checks you can make to identify potential fraud, what immediate steps to take, and how to improve caution for the future.
Act swiftly, try to keep emotional reactions to a minimum
If you suspect a fraudulent transaction from your credit card, try to regulate your emotional reaction so that you can act to swiftly tackle any issue. Keeping your head during financial and emotional distress can help significantly minimise your losses.
First, keep in mind the Reserve Bank of India (RBI) norms do not place liability for unauthorised transactions on the credit card holder. That’s while detailed and immediate reporting of the incident, with proper timeline and defined conditions (i.e. bank or system negligence) can help with how your grievance is taken forward.
As a responsible credit card holder, it is imperative that you to report suspicious transactions alerts (via SMS, email or monthly statements) to the bank or financial institution without delay.
How to identify suspicious card transactions?
- For immediate check, first confirm that the transaction was not made by a family member or linked merchant.
- Track your auto-pay instructions or pending subscriptions to rule out predetermined payments.
- Check for details of the vendor in the transactions message — was the debit online or offline, was it domestic or international?
- Once you have eliminated legitimate sources of deduction and confirmed that the transaction is fraudulent one, formally report the issue.
How to report credit card fraud?
- The first step you should take is block the card and limit further financial damage. This can be done via mobile or netbanking or your bank’s app or even helpline number. It allows you time to deal with the situation properly.
- File a formal complaint with the bank or financial institution where you report the issue. Provides details of the fraud alert — time, transaction ID, amount debited and clearly state that this was unauthorised by you.
- Apart from the bank / financial institution, you can also register a similar detailed complaint with the central bank.
- You also have the option to file an FIR with the police seeking resolution.
- Keep record of the SMS alert, email, FIR copies, screenshot of the transaction message, and complaints made. These will help when it’s time to make a claim for your losses. Please note: You will have to check with your bank / financial institution for terms of process.
- Follow-up diligently for reversal of funds and updates from relevant authorities.
How to protect yourself from credit card fraud?
- Activate transaction limits and instant alerts for timely updates.
- Use secure networks while making online payments.
- Continuously change your ATM PINs, credit card login passwords, etc, at regular intervals to boost security.
- Enable international and online credit card usage only when needed.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
