What are the types of Credit Card Fraud in India & how to prevent it?

 

Credit card fraud in India is a plastic card that reflects the overall line of credit that is

issued to you by the respective bank for your usage. It enables the cardholder to buy

goods and services based on their total credit limit and pay back the same amount of

money within a stipulated period. As online shopping has increased, therefore,

excessive use of credit cards is performed by the holder of it. At month end, the

owner of the card can either pay the whole amount that he owes to the issuer or a

minimum proportion of the bill by the due date. Through the use of credit card fraud

in India, you can buy anything and settle it with the lender either through an easy

monthly installment or in one shot.

● A credit card is a very flexible source of money.

● Even in abroad, you can use it without worrying much about the local currency, as its usage is spread worldwide.

Types of Credit Card Fraud

Credit card fraud in India does come with lots of benefits, but it also has certain limitations.

Credit card fraud in India has increased, and some of you may never have faced such kinds

of fraudulent activities. But the unlucky one who gets trapped in this vicious cycle of fraud

does face it a lot. Credit card fraud in India deals with such kinds of transactions that

happened with the aid of your card, which you never authorized in your wildest dreams. It

can take place if your card has been stolen by a fraudster or someone has stolen your

personal card details to perform unauthorized transactions with your card physically.

1. To steal your sensitive account details, a fraudster can install a credit card skimmer.

2. This tool can be installed by the fraudster anywhere, where you generally swipe your

card more often.

To get rid of it, as a user of this card, preventive measures should be taken into attention.

Let us now discuss the types of credit card fraud that exist in a country like India.

• Application fraud

This type of credit card fraud in India takes place when fraudsters apply for a card in

your name. These fraudsters generally impersonate you, and try to get a card in your

name from the bank. They steal your sensitive information and then use it as a

supporting document to open an account. It is the bank that can prevent this sort of

activity just by accepting original ID proofs. A bank can perform such activity simply

by confirming the identity of the owner with the help of a simple telephone call.

• Electronic card imprints

This type of credit card fraud in India happens by stealing the card imprints.

Fraudsters perform it by stealing the information placed on the credit card magnetic

strip. Then they use this sensitive information of yours to create a fake credit card.

And use it for all sorts of illegal transactions.

• CNP (card not present) fraud

This type of fraud happens when the fraudster has all the sensitive personal

information of your card with them. Details like account number and expiration date

are ample to make all sorts of international payments. Nowadays, most of the

issuers of this sort of credit card make it essential to enter the pin on the card. There

are high chances that a fraudster who knows your card details might know the pin

too.

• Counterfeit card fraud

Counterfeit credit card fraud in India is a newer form of fraud that gets performed

through the process of skimming. In this type of fraudulent activity, a fake magnetic

tool or instrument holds up your card. Later, this strip is used by the fraudster to

prepare a fake card. It happens to be an exact copy of your card, which the fraudster

can swipe anywhere around the globe to purchase all sorts of goods and services. A

precautionary measure should be taken by you prior to putting the card in the

swiping machine. Try to check the chip reader into which you insert your card. At

times, you can pull it outward; if it comes out directly, simply lodge an FIR with the

nearest police station.

What to do if you’re a victim?

As an user of a credit card, try to monitor all your credit accounts regularly. This will keep you

updated because credit card fraud in India is even performed by these fraudsters when the

card is present in your wallet. According to the 2015 Nilson global credit card report, this sort

of fraudulent activity amounted to around USD 21.84 billion, especially in losses. Therefore,

the cybercrime department and RBI, through joint initiatives, should keep you informed about

it so that you can get rid of these sorts of fraudulent situations.

● Remember to keep track of each and every transaction that is related to your credit

card account.

● If any single unauthorized transaction takes place, then directly report it back to the

bank.

Practice Vigilance

As a credit card user, when you face this sort of fraudulent activity, you should protect

yourself and your sensitive details from being scammed. Even you can use advanced tools

that are present on the internet to detect a scam. Always, remember that vigilance is key,

and therefore you should download your mobile banking app and keep proper track of your

credit card usage. Even avoid using any sort of third-party application. Even set up a mobile

alert for each and every credit card transaction that you perform regularly.

• Inform the Card Issuer

Immediately inform the card issuer when a transaction in your absence takes place on your

credit card. It is advisable to inform the bank regarding this fraudulent activity within 3

business working days. Even the user should lodge a complaint with the bank and ask them

to block the card immediately, so that no further fraudulent activity takes place.

• Change Your Passwords and PINs

To prevent fraudsters from performing any further damage, as a user of your credit, you can

immediately request the issuer of your card to enable you to change your password or PIN

at once. Keep an eye on the financial activities of your bank account and check its status

regularly. At times, if you notice some sign of fraud, you must inform the bank immediately.

How to prevent credit card fraud?

To prevent all sorts of credit card fraud in India, when an account summary arrives for your

credit card at the end of the month, Try to read the statement carefully and pay only the

amount mentioned for the transactions you have performed. Prior to paying the due amount,

always read the statement carefully, and in some cases, if you find out that some suspicious

transactions took place with your card, then inform the bank immediately.

To prevent fraud, follow these three steps carefully today.

• Always log out and avoid phone call scams

As a user of credit card fraud in India, whenever you log in to your account to check the

transactional activity of your card, never ever forget to log out after every usage. Even at

times, you might receive calls from fraudsters claiming that they belong from the credit card

department and simultaneously asking for your sensitive details. Always remember that

banks never ask for your account details.

• Check your credit report

As a credit card user, it is a good habit to check your credit card report systematically. You

should check your credit report cautiously and keep in mind that all your loans should be in

your name. At times, a new loan might be obtained by the fraudster in your name. If you

observe such activities within your credit card report, then immediately contact your bank.

• Beware of a phishing scam

At times, as a user of a credit card, you might receive phishing emails from thieves

pretending to be part of the bank. They might ask for your sensitive account details; never

ever fall victim to such scams. It is always run by hackers who love to steal your account

details and use your card for all kinds of illegal transactions.

In conclusion, it can be said that credit card fraud in India, since 2010, has increased

at a rapid pace. This happened because of a lack of awareness among the

commoners and even among the banks. Numerous measures should be taken by

these banks, and they should perform strict verification either with the aid of newer

technologies or by using biometrics before issuing a card to anyone's name. In this

way, they can prevent credit card fraud in India.