Several incidences of credit card fraud in India are reported every year despite improved online and offline card security measures. Data published by the Reserve bank of India indicates that there are reported instances of 1.17 lakh cases of debit and card frauds across the span of April 2009 to September 2019. These reported figures could have only been higher if fraud amounts less than Rs.1 lakh were tracked between April 2009 and April 2017.
Even with a greater number of such frauds being reported, not much has changed on the ground level. This fraud in India is thus increasing owing to limited card security and a common lack of awareness among individuals. One must thus take necessary measures to avoid falling prey to such frauds. Before that, here’s a look at the common credit card fraud to be vigilant of.
Types of credit card fraud
Phishing is far too common among the various credit card fraud types. This technique is adopted by fraudsters, wherein an individual is led to a fraudulent link via a high-authority email lookalike and asked for sensitive card details. Subsequently, such details are utilized without any authority to make transactions on the cardholder’s name.
- Loss of credit card
Credit card loss is fairly common, especially under instances where a wallet is lost or stolen. Such debit or credit cards are thus likely to be misused for unauthorized transactions. Individuals can, nevertheless, protect their cards from misuse with a suitable insurance policy in place.
For instance, financial service provider Bajaj Finserv offers Pocket Insurance and Subscriptions such as Wallet Care, enabling users to block their cards immediately. Multiple cards can thus be blocked through a single phone call apart from emergency travel assistance and PAN card replacement services, among others, via such an insurance cover.
These are a few examples of credit card fraud. Given that technology is advancing at an incredibly faster rate, the types of fraud are also becoming sophisticated by the day.
Immediate steps to take after a credit card fraud
If you have been a victim of such fraud, there are a few steps that should be taken immediately –
- The card issuing authority must be informed in the very first instance, after detection of a credit card fraud.
- Next, send a request to block the concerned credit card at the earliest.
- A formal written complaint will have to be raised, including details regarding the ID and address proof of the complainant, account statement of the previous six months, and attachment of SMS or any other intimation of an unauthorized transaction.
- It would also be prudent to file a complaint with the police about credit card fraud along with attaching the required documents.
How to prevent credit card fraud?
With prudent initiatives, individuals can prevent fraud on their credit cards. Below are thus given some measures for credit card fraud prevention.
- Tracking credit card statement
Fraudulent transactions may not become immediately apparent at all times. Regular tracking of the credit card statement thus helps notice an unauthorized transaction immediately.
It may help an individual to avail bajaj fraudulent charges cover in which he/she will be protected from losses like unauthorized charges deducted from a credit card while making an online transaction.
- Not disclosing card details
An important measure for credit card fraud prevention, a cardholder should never disclose details such as PIN, CVV, etc. over the phone to unidentified personnel or through email. Individuals should remain aware that card providers do not seek details from customers in such a manner.
Apart from adopting these measures, availing of an ATM safeguard policy can further enable you to block all your credit and debit cards with a single phone call in an instance where your wallet is lost or stolen.
These measures for credit card fraud prevention will help in providing relief to a certain extent, in case of a fraudulent transaction made from a credit card. However, in the backdrop of an increasing rate of cybercrime, it is essential to remain vigilant about such transactions and regularly follow up on card statements.