Financial frauds on the rise: Safeguard yourself with the Wallet Care plan3 min read . Updated: 29 Oct 2020, 11:08 AM IST
As the cases pertaining to cyber-attacks and credit card frauds continue to increase, people are now being encouraged to take preemptive measures through credit card and debit card protection plans.
Until 2016, most Indian consumers weren’t too keen on switching to digital payments, and preferred dealing in liquid cash. The transaction volumes were also low, at only 30,000 transactions a day on an average. However, digital transactions really became prevalent during the demonetization period, when nearly 86 percent of the currency in circulation was made redundant. Since then, the Indian Government and multiple private players provided the much-needed impetus to steer Indian consumers towards digital payments.
During the COVID-19 pandemic, while Indians were locked inside their homes for the better part of 6 months, unsurprisingly, they relied on digital payments for almost everything they purchased. During FY20, it was reported that the number of new retail digital payments exceeded the 30 billion mark, while the value of such transactions ballooned past Rs. 3 lakh billion for the first time in the country. This only reaffirms the notion that digital payments may make traditional cash payments redundant in the near future.
Rise in payment frauds and cyber attacks
The rise in digital transactions has been accompanied by an increase in cyber frauds, targeting users that make digital payments. While cyber fraud has witnessed a spike in recent years, the conviction rates are still relatively low, because of the nature and complexity of the crimes being committed. Unauthorized transactions, telephishing and other payment frauds have once again come under the spotlight, as more people started relying on digital payments during the pandemic.
While online frauds have become rampant, cases pertaining to credit card frauds and debit card frauds have also surged. Between FY17 and FY20, a staggering 140,471 cases of fraudulent usage of credit cards, internet banking and debit cards were reported, targeting an amount that totals to Rs. 589.14 crore.
Pre-empting payment frauds through card protection plans
As the cases pertaining to cyber-attacks and credit card frauds continue to increase, people are now being encouraged to take preemptive measures through credit card and debit card protection plans. It is imperative that consumers protect themselves from unauthorized transactions, hacking, and data breaches, which can be accomplished through protection covers. For instance, the Fraudulent Charges Cover from Bajaj Finserv provides coverage up to Rs. 80,000, at just Rs. 349 per annum. The cover offers reimbursement for unauthorized charges that are made using your payment card information, either through in-store purchases, telephone purchases, online purchases or ATM withdrawals.
Another offering from Bajaj Finserv that has been designed to safeguard consumers from debit or credit card fraud is the Wallet Care plan. The plan offers financial coverage in the event of loss or theft of a consumer’s wallet, and any subsequent fraudulent transaction done using their payment cards. Banks require their customers to report any lost card, or information pertaining to any financial transaction not carried out by them as soon as possible. The Wallet Care card protection plan, for a nominal fee of Rs. 599, allows you to block all of your payment cards through one phone call irrespective of your location.
The Wallet Care plan can also prove to be valuable if you lose your wallet or important documents while traveling in India or abroad. The plan offers emergency travel and hotel assistance up to Rs. 1 lakh which is interest free for a period up to Rs. 1 lakh.
Additionally, you can avail benefits such as PAN card replacement, SIM card blocking service, and complementary fraud protection, with coverage up to Rs. 2 lakh against card fraud involving PIN-based fraud and tele-phishing. The plan also provides coverage up to Rs. 1 lakh against card fraud, in cases of card present (CP) or card-not-present (CNP) transactions. However, in the event of the consumer losing the insured item while being intoxicated, or under the influence of drugs, toxins or narcotics, the coverage offered under the Wallet Care plan does not stand. Furthermore, any losses that stem from acts of forgery, fraudulent or dishonest acts committed with the intent to defraud the card issuer or the insurer are not covered under the Wallet Care plan.
Cyber hygiene is the need of the hour
As per a recent joint study conducted by YouGov and ACI Worldwide, 47 percent of the respondents hailing from Tier-1 cities in the country expressed their concerns about digital payment frauds. This makes It imperative that you protect yourself from credit card and debit card frauds by choosing insurance plans that offer you greater security, by providing a safety net from falling prey to criminals and scamsters. The Wallet Care card protection plan offered by Bajaj Finserv protects you from fraudulent transactions and purchases that are done using your payment cards, while also offering financial coverage, in case of loss or theft of your wallet.