Credit card frauds in India


With digital progress worldwide, credit card fraud has become far too familiar and common type of banking fraud in India. Everyone usually knows of another person who has been a victim. Perhaps, we might be one of them. With millions of online shopping websites accepting credit cards, it's not rare to get trapped by fraud.

According to data presented by RBI, credit card and debit card fraud siphoned off about ₹615.39 crores in the last decade. NCRB's report showed the cases were 2,062 in 2017 and rose to 3,432 in 2021.

Besides card fraud, there has been a massive spread of internet banking fraud in India. The Minister of State for Electronics and IT, Sanjay Dhotre, revealed in Parliament that the amount involved in these fraudulent transactions in 2020 is Rs 228.44 crore.

Maharashtra witnessed the maximum number of cases accounting for about 43% of all fraudulent cases from the financial year 2017 to the financial year 2020 of debit cards. Haryana and Tamil Nadu accounted for 23% of all fraud cases during the same term.

Types of Credit Card Frauds

Credit holders certainly enjoy more rewards than debit card users. They can swipe it for international payments that come with an abundance of benefits. However, it also catches the attention of scammers.

Stolen Cards

The age-old trick of credit card fraud was physically stealing it from a person’s pocket. Often common in crowdy places like busy railway stations, bus stations, and public gatherings. The owner doesn’t even realize his cards are lost until he checks. The credit cards are usable until the owner reports to the bank and blocks the card.

Phishing emails

Another common form of fraud in the digital spectrum is phishing emails. It can be just regular mail in your inbox. Most common are those asking for donations for charity or the famous “You’ve been the lucky winner” emails. We must refrain from providing credit card details like credit card numbers to these emails.

Over the years, Gmail and other emailing apps have come up with their filters that more or less alert the users. Yet, with the arrival of more innovative hacking systems, phishing email frauds are still prevalent.

SMS and calls

The OTP fraud is very fresh in the arena. Jamtara, the famous web series on Netflix, showed how people commit credit card fraud by asking for OTP and credit card details.It is essential to realize that we should never give away or disclose our OTP to anyone else.

Application Fraud

Application fraud is a more established method where fraudsters use random people’s application forms and other forms to make fake credit cards and misuse them. We should stay clear of such fraudulent activities.

Follow These Safety Measures in Case You Get Credit Card Defrauded

Digital education is the only way users can tackle this card fraud. Nobody can deceive you as long as you follow these suggested measures in regular transactions.

Check and cross-check all transactions

Firstly, recall past transactions as soon as you get a message stating that you’ve been debited a certain amount. Ask family members if they’ve been using credit cards recently. Once it is made sure that it is indeed a fraud message, move on to the next step.

Contact your card issuer

Immediately contact the bank authorities when you spot the fraud. Confirm with the bank about the irregular transactions. Banks can track the exact location and other details with information; hence contacting them should be primary. All stolen cards must be blocked as soon as possible so that no further transactions can be done.

Check other accounts

Simultaneously it is highly prudent to check all other bank accounts that one might have. Review for any irregularities and change passwords immediately. Review all the details and ensure enough security.

Contact the authorities:

National credit bureaus have toll-free numbers that you can contact to inform about your form. You can deter any further damages by immediately placing a fraud alert with these bureaus. It saves you from additional chaos and even helps you recoup some amount back. Once you raise an alert, you will be notified if there are any other transactional attempts made.

Equifax: 866-349-5191

Experian: 888-397-3742

TransUnion: 800-916-8800

Credit card misuse can also hamper your credit score, so it is advisable to report them.

File a police complaint

If you’re unaware of who has committed the fraud, filing a report with your local police station can save you some long-term stress. While they may not necessarily be able to find the perpetrator across the globe, your frustrations could be caused by someone in your area. Plus, identity theft is not a joke, so it’s best to be sure you’re protected. On the other hand, if there is a history of credit card fraud, it is advised to tell the police to open an investigation to figure out who is behind the crime.

File a complaint with the FTC

The FTC serves as a helping hand to victims of identity theft. Listening to complaints, providing relevant information, and referring complaints to the police and credit reporting agencies are a few responsibilities the committee oversees. The FTC may also refer the case to another government agency or a company for further action if necessary. For increased ease of access, the FTC's online form is available.

Monitor credit card reports frequently

Once bitten, twice shy

This proverb is to be strictly followed in credit card fraud. Note past mistakes, regularly keep track of transactions, and share details in the future to ensure that no such scams occur again.

Tips to Prevent Credit Card Fraud

Some quick tips that you can use while engaging with credit card transactions.

  • Never share your credit card details with anyone except those highly trusted.
  • Never share your OTP with others
  • Never use weak passwords consisting of characters, alphabets, and numbers.
  • Never keep written passwords carelessly.
  • Never maintain the same passwords for a long time.
  • Never keep your device's anti-virus spyware free.

Credit card fraud can take a toll on your mental and financial stability. The authorities are trying to curb digital fraud. Every coin has two sides, where there is a convenience but also a risk. Staying cautious and promptly acting on anything slightly fishy can save you from such a trap. Educate yourself about safety measures against fraud and stay updated.

Found this helpful? Visit Rest The Case and read more such blogs to know your rights and safeguard yourself from frauds and scams.

Author: Shweta Singh