Credit card fraud aims at stealing your credit card details and using it to make purchases put on your account. As the name suggests, credit card fraud is an illegal act which can be executed by someone stealing your card, hacking your accounts, calling about fake lottery wins, stealing email accounts, and even peeping over your shoulder to see your passwords and CVV.
A credit card fraud can be understood as identity theft, where a fraudster steals your credit card credentials to execute financial transactions from your card without your knowledge. This can be done by physically stealing your card, skimming your card details, or simply by knowing your credit card number and other information.
There are various credit card fraud types, and they can be broadly classified as follows:
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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.
Some of the common ways for credit card fraud detection in India:
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.
Here are some tips that can help you protect yourself from credit card fraud:
Credit card fraud is when someone uses your credit card to make unauthorized purchases. It will only affect your finances since the fraudster gets their hands on your credit card(s) and its related details.
On the other hand, identity theft can be understood as someone stealing your personal information like your name, date of birth, social security number, etc. and using it to apply for new credit cards or loans in your name. A person can steal your personal information, pretend to be you, and use your credentials for financial gain.
There are a few things that can trigger a credit card fraud alert and indicate unauthorized purchases, such as:
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 a credit card fraud complaint and a complaint with the RBI’s Office of the Fraud Inspector General.
Ans: The different types of credit card frauds are identity theft, account takeover, keystroke logging, PoS fraud, application fraud, and phishing.
Ans: 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.
Ans: You can report credit card fraud by calling your bank’s customer care number, logging into the bank’s app, or the netbanking portal.
Ans: 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.
Ans: 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.
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