The unauthorised use of another person’s credit card information to make purchases or withdraw cash is known as credit card fraud. It can take many forms, including physically stealing a credit card, skimming the credit card’s information, phishing for credit card information, or using computer malware to obtain credit card data. Fraudsters can use stolen credit card information to make fraudulent purchases or cash withdrawals, causing the victim to incur financial losses. Credit card scams can also compromise a victim’s personal and financial information, causing long-term harm to their credit rating and financial well-being. As a result, it is critical to take steps to prevent credit card fraud and to report any unauthorised transactions as soon as possible.

What are the Types of Credit Card Frauds?

Here are several types in which credit card scams can occur, and they can be broadly classified as follows:

1. Identity Theft

This is one of the most common types of credit card fraud wherein a person uses your personal information like your name, account or card number, date of birth, etc., to apply for a new credit card in your name. Once the application is approved, the fraudster can use your credit card to make unauthorized purchases.

2. Account Takeover

In this type of fraud, a fraudster gains access to your credit card account and uses it to make unauthorized transactions. This can be done by stealing your credit card details or guessing your password.

3. Fake Credit Card or Application Fraud

In this type of fraud, a fraudster creates a fake credit card using your personal information to make unauthorized purchases.

4. Card skimming or PoS Fraud

Card skimming is a type of credit card fraud wherein a fraudster attaches a device to an ATM or a gas station pump to copy your credit card details. The fraudster can then use your credit card details to make unauthorized purchases.

5. Keystroke Logging

Keystroke logging is a type of credit card fraud wherein a fraudster installs malicious software on your computer to track the keystrokes you make. The fraudster can then use your credit card details to make unauthorized purchases.

6. Phishing

Phishing is a type of credit card fraud wherein a fraudster sends you an email or a text message that looks like it’s from your bank or credit card company. The message will ask you to click on a link or download an attachment. Once you do so, your personal information like credit card number, CVV, etc. will be stolen.

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How to Detect a Credit Card Fraud?

Some of the common ways for credit card fraud detection in India:

1. Unauthorized or Suspicious Transactions

If you see any unauthorized or suspicious transactions on your credit card statement, then it’s likely that your credit card has been compromised.

2. Missing Statements

If you stop receiving your credit card statements and you haven’t particularly asked to unsubscribe, then there is a possibility someone has stolen your credit card and is using your card to make unauthorized purchases without your knowledge.

3. Receiving Calls, Text Messages or Emails from Unknown Numbers

If you receive calls or messages from unknown numbers asking for your credit card details, then it’s likely that you’re being targeted by a fraudster.

4. Discrepancies in your Credit Report

If you see any discrepancies in your credit report (new credit card applications, credit card loans, etc), then it could be a sign that someone has stolen your identity and is using your personal information to apply for new credit cards.

5. Higher than Usual Credit Card Bills

If you see a higher than usual credit card bill, your credit card may have been used to make unauthorized purchases.

Who is Responsible for a Credit Card Fraud?

The Reserve Bank of India (RBI) has revised the guidelines for credit card fraud, defining where the buck lies. Protecting the customer’s interests, the RBI has made credit card fraud rules stricter for credit card companies. Per the guidelines, if a customer reports a credit card fraud within 3 days of receiving the statement, the credit card company will be liable to refund the entire amount.

In case the customer reports the fraud after 3 days but within 60 days of receiving the statement, then the liability will be capped at Rs. 25,000.

However, if the customer does not report the fraud within 60 days of receiving the statement, they will be liable for all the transactions.

How to Report a Credit Card Fraud?

If you suspect your credit card has been compromised, you should immediately report the fraud to your bank or credit card company. You can directly call the customer care toll-free number and report the scam to the concerned authorities in the bank. Alternatively, you can log into your bank’s net banking portal and report the fraud. You will also have the option to hotlist or block your card if you wish to.

You should also file a credit card fraud complaint at the local police station and obtain a copy of the FIR. This will be helpful in case you need to submit it to your bank or credit card company for further investigation.

In addition, you should also file a complaint with the RBI’s Office of the Fraud Inspector General (OFIG) if you suspect you’ve been a victim of credit card fraud.

How Can You Protect Yourself From a Credit Card Fraud?

Here are some tips that can help you protect yourself from credit card fraud:

Never share your credit card details with anyone.
Always keep your credit card in a safe and secure place.
Never write your credit card PIN on the back of your credit card or anywhere else.
Never save your credit card details on your computer or mobile phone.
Always check your credit card statements carefully and immediately report any suspicious transactions to your bank.
If you suspect your credit card has been lost or stolen, you should immediately report the suspicion to your bank or credit card company.
You should also keep track of your credit score and credit report regularly to check for any suspicious activity.

How to Report a Credit Card Fraud for Different banks?

1. State Bank of India

Type “BLOCK” then add the last four digits of your credit card, and send this SMS to 5676791. You can also report the incident by calling SBI’s customer service number, which is (prefix local STD code) 39 02 02 02 or 1860 180 1290.

2. IDBI Bank

You can report such scams by dialing 1800 425 7600 (toll-free) or +91-022-4042 6013. (non-toll-free). You can also report such fraud to [email protected]

3. AXIS Bank

Report the incident to Axis Bank’s credit card customer service at 1860 419 5555. You can also go to the nearest branch and report the incident.

4. Punjab National Bank

You can report credit card fraud by calling the toll-free number 18001802345 or 0120-4616200. Another option is to send them an email with all of the information at [email protected]. If you are unable to complete any of these steps, send an SMS (HOT>space>card number) to 5607040 from your registered mobile number.

5. Citi Bank

Step 1: Log in to Citi Bank’s website.
Step 2: Select “Credit Card”.
Step 3: Select the card you want to report.
Step 4: Select “Account Statement”.
Step 5: Click on “Dispute”.
Step 6: Select the fraudulent transaction.

6. Bank of India

Call customer service at 1800 220 088 to add your credit card number to the hotlist. If you are unable to reach them at this number, dial (022) 40426005/40426006. You can also report theft or scam by emailing [email protected] and requesting that your card be blocked.

7. HDFC Bank

If any fraudulent activities are discovered, call their toll-free number, 18002586161 to report.

Step 1: Login to HDFC net banking portal.
Step 2: Select “Card” option
Step 3: Click “Request” below the credit cards tab
Step 4: Click on “Credit Card hotlisting” and enter details of your card.

8. Indusland Bank

Step 1: Log in to IndusNet portal
Step 2: Click on “Service Request”.
Step 3: Select“Credit Card Requests”.
Step 4: Click on “Credit Card Blocking Request”.
Step 5: Select the card you want to block.
Step 6: Click on “Submit”.

9. Indian Bank

To block your credit card, text BLOCK to 092310 00001 or 092895 92895.

What’s the Difference Between a Credit Card Fraud and an Identity Theft?

Credit Card Fraud	Identity Theft
Involves making purchases or withdrawing cash using someone else’s credit card information without their permission.	The unauthorised use of another person’s personal and financial information in order to obtain credit, loans, or other benefits.
Can be caused by a variety of methods, including stealing a physical credit card, skimming credit card information, or phishing for credit card information.	It can be caused by a variety of methods, including the theft of personal documents, phishing for personal information, or hacking computer systems.
In most cases, the card issuer is responsible for reimbursing the victim for fraudulent charges.	In order to repair the damage, the victim may need to file a police report, notify financial institutions, and contact credit bureaus.
Usually limited to fraudulent credit card transactions	Can result in a variety of financial and non-financial consequences, such as credit rating damage, financial loss, and even criminal charges.
Can be avoided by taking precautions such as regularly monitoring credit card transactions and safeguarding credit card information.	Can be avoided by taking precautions such as safeguarding personal information, using secure passwords, and regularly monitoring credit reports.

What Triggers Credit Card Fraud Alerts?

There are a few things that can trigger a credit card fraud alert and indicate unauthorized purchases, such as:

Suspicious or unusual activity on your credit card
Unexpected charges on your credit card
Your credit card is lost or stolen
You receive a letter from your bank or credit card company about suspicious activity
You receive a call from your bank or credit card company about suspicious activity

Refund Rules for Fraudulent Transactions

Time Required to Report the Transaction from the Date of Communication	Customer’s liability
Within 3 working days	NIL
4-7 working days	The transaction amount or the maximum liability table amount, whichever is less.
More than 7 working days	According to the bank’s board-approved policy

Things to Consider While Reporting a Fraudulent Transaction

Take a screenshot of the SMS message you received regarding the fraudulent transaction.
Remember to obtain a complaint reference number from the bank.
Any phone conversation you have with the bank must be recorded.
You can also send an email to the bank with your reference number after the call.

Final word

If you think that you’ve been a victim of credit card fraud, then you should immediately contact your bank or credit card company. You should also file this credit card scam and complaint with the RBI’s Office of the Fraud Inspector General.

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FAQs

What are credit card fraud types?

The different types of credit card frauds are identity theft, account takeover, keystroke logging, PoS fraud, application fraud, and phishing.

Does the customer have any liability in case of credit card fraud?

The customer does not have any liability in case of credit card fraud if the incident is reported within 3 days of receiving the credit card statement. If it is reported within 60 days of receiving the statement, the customer’s liability will be capped at Rs 25,000.

How can I report credit card fraud?

You can report credit card fraud by calling your bank’s customer care number, logging into the bank’s app, or the netbanking portal.

Is credit card fraud and identity theft the same thing?

No, credit card theft involves someone stealing your credit card details to make unauthorized transactions. Identity theft involves someone assuming your identity to execute financial frauds.

What is PoS fraud?

This is a type of credit card fraud wherein a fraudster attaches a device to an ATM or a gas station pump to copy your credit card details and make unauthorized transactions.

Do credit card frauds get caught?

Yes, they do, however it’s difficult to state how many get caught in a year since most are not reported.

Can police do anything for credit card frauds?

When credit card fraud is suspected, the police will usually start by obtaining a copy of the disputed transaction from the bank or credit company.

Do banks refund scammed money?

Most banks will reimburse you if you transfer money to someone as a result of a scam. This is known as a ‘authorised push payment’ scam.

How many types of credit card frauds are there?

There are 7 types of credit card fraud in India.

About the author

Navi Team

We are a diverse group of writers, editors and Subject Matter Experts striving to bring the most accurate, authentic and trustworthy finance and finance-related information to our readers. Our mission is to simplify jargon and industry lingo. We believe sharing knowledge through relatable content is a powerful medium to empower, guide and shape the mindset of a billion people of this country.