How to prevent and report credit card fraud: A complete guide

Credit card fraud has grown more prevalent, as scammers consistently discover innovative methods to deceive unwary people. As banks and regulators such as the Reserve Bank of India (RBI) strive to minimize risks, it is essential for customers to grasp their obligations and the measures to safeguard themselves.

Here’s all the information you require regarding handling unauthorized credit card transactions.

Customers might be entirely responsible for unauthorized transactions if they act with negligence. The RBI regulations indicate that if a customer reveals payment information or does not report a transaction in a timely manner, they will incur the loss. Nonetheless, if fraud takes place without any customer negligence and is reported within three days, the customer has no liability.

Should the report be postponed for more than three days, the customer’s responsibility will be limited to either Rs 10,000 (for credit cards with a cap of Rs 5 lakh) or Rs 25,000 (for credit cards with a limit exceeding Rs 5 lakh). In such situations, the bank must demonstrate the customer’s responsibility.

Upon reporting a fraudulent transaction, banks must reverse the charge within 10 business days. Even if the fraud arises from the customer’s carelessness, banks might opt to forgo the responsibility.

If complaints remain unresolved, the bank is required to address the matter within 90 days. If they do not comply, the customer will only be responsible for a small sum, and no interest resulting from the fraud will be applied.

The initial action to take if you believe there are unauthorized transactions is to quickly block your card. Contact the credit card support line or customer service, and prepare to give your card information for validation. Once the card is blocked, ask for a new one. Provide any required documents to report the fraud. Timely reporting and responsive actions are essential for reducing the harm.