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Business News/ Industry / Banking/  Axis Bank customers rattled by spate of fraudulent international purchases on credit cards, lender plays down concerns
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Axis Bank customers rattled by spate of fraudulent international purchases on credit cards, lender plays down concerns

The issue came to light as numerous Axis Bank credit card holders took to social media platforms like X (formerly Twitter) to report unauthorised transactions, including international purchases made without their consent

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Axis Bank, one of India's leading private sector lenders, is facing a wave of customer complaints regarding unauthorised transactions on their credit cards, prompting concerns about potential data breaches. However, the bank has denied any such breach and attributed the incidents to a limited of cases of fraud, as per an ET report.

The issue came to light as numerous Axis Bank credit card holders took to social media platforms like X (formerly Twitter) to report unauthorised transactions, including international purchases made without their consent. One user claimed to have received a fraudulent transaction alert from Uber Eats Canada, while others complained about being unable to close their credit cards due to technical glitches on the bank's app, as per the report.

Despite the widespread reports, Sanjeev Moghe, the head of cards and payments at Axis Bank, maintained that there has been “no data breach" at the bank's end. He acknowledged that customers witnessed unauthorised transactions starting Tuesday evening, involving low-value purchases on e-commerce sites. However, he emphasised that the scale of such transactions is “very limited," as per PTI.

Moghe clarified that the bank typically observes daily spending of approximately 500 crore by its credit card users, but the unauthorised transactions constitute only a small fraction of that. “We're talking about thousands and lakhs," he said, suggesting that the incidents were isolated to a single day and have since ceased, the PTI report added.

According to Moghe, the report added that the fraudsters obtained access to a limited number of card numbers and paired them with corresponding expiry dates to execute unauthorised international transactions, which can proceed without additional authentication factors like one-time passwords or CVV numbers. 

The bank official explained that the first six digits of a 16-digit card number are specific to the bank, and card numbers can be acquired when customers use their cards at petrol pumps or restaurants. However, he stated that he was not immediately aware of similar incidents affecting other banks.

In response to the situation, Axis Bank is taking measures to address the issue by replacing the credit cards for affected customers and reimbursing the debited amounts. The bank has also informed the Reserve Bank of India (RBI) about the incidents and plans to implement strategies, such as audits, to prevent similar occurrences in the future.

Despite assurances from Axis Bank, the unauthorised transactions have raised concerns among customers about the security of their financial data and the bank's ability to protect their interests. The incident serves as a reminder of the growing threat of cybercrime and the need for robust security measures in the banking sector.

(With Inputs from PTI)

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Published: 29 Mar 2024, 12:55 PM IST
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