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Business News/ Money / Personal Finance/  How to tackle fraudulent transactions on your credit card? A step-by-step guide

How to tackle fraudulent transactions on your credit card? A step-by-step guide

If you suspect unauthorized transactions on your credit card, report them to your bank or contact your customer care representative right away to address the issue.

Tackling fraudulent credit card transactions is not difficult if you know the rules.Premium
Tackling fraudulent credit card transactions is not difficult if you know the rules.

According to the latest RBI data, in February 2024, the total number of credit cards issued by banks in India crossed the 100 million milestone, registering an increase of 1.1 million cards from the previous month. While this highlights the increasing popularity of credit cards, it also suggests a potential uptick in credit card fraud cases. This is particularly concerning as many cardholders have reported unauthorized international transactions even after deactivating international usage. 

Unauthorized transactions and receiving one-time passwords (OTPs) for unrecognized charges are indications of possible credit card fraud. Several cardholders report a rise in unauthorized transactions on their credit cards, including international charges. This could be attributed to a data breach or card skimming scams. So, what steps should you take if you notice an unauthorized transaction on your credit card?

Many card-issuing organizations, including banks, provide built-in protection against fraudulent transactions on their credit cards. Typically, this is in the form of zero liability, which applies when customers report a fraudulent transaction to the bank within three days of the incident.

To start with, take the following immediate actions to safeguard your card and bank account. Please note that the process might differ slightly among banks and card issuing institutions.

Step 1: Blocking your card is the essential first step if you suspect unauthorized transactions on your credit card. Locate your bank’s credit card helpline number, which is typically printed on the back of your credit card or readily available on your bank’s website or mobile app.

Alternatively, contact the customer care centre right away. The sooner you block your card, the lower the risk of fraudulent activity. Have your information ready. When you call, keep your credit card number and other pertinent details readily available for verification by the customer service representative. 

Step 2: Clearly describe the suspicious activity you’ve observed, including any unauthorized charges or OTPs received for unfamiliar transactions. After blocking your card, seek the replacement of your card with a new number.

Step 3: Depending on the nature of the credit card fraud, submit the necessary documents. The documents required after blocking your card will vary based on where the fraudulent transaction occurred.

Domestic transactions

Cardholder Dispute Form (CDF): Many banks offer a standard form for reporting disputed transactions. Complete it with the details of the unauthorized transactions.

Written complaint letter: Address this letter to your bank, detailing the unauthorized activity, the date of the incident (if applicable), and any pertinent information.

International transactions

Both CDF and the complaint letter would still be required. 

First Information Report (FIR): For transactions exceeding a designated amount (typically 20,000 or as per your bank’s policy), filing an FIR with the police is required. This document acts as an official record of the incident.

Additional documents (if applicable): In some instances, your bank might ask for extra documentation for international transactions, such as a copy of your passport (especially if the fraudulent location is ambiguous).

When reporting fraudulent transactions on your credit card, cardholders should be mindful of the following:

  • Retain copies of all documents you provide to the bank for your records.
  • Promptly respond to any information requests from your bank.
  • The required documents and procedures may vary slightly depending on your bank. It’s always advisable to consult your bank’s customer service for the most current guidelines.

By following these steps, you can effectively report fraudulent transactions and reduce the impact of credit card fraud. Remember, staying vigilant and responding promptly is crucial.


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Published: 04 Apr 2024, 08:47 AM IST
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