Credit card fraud in India has grown significantly with the increase in digital transactions. Understanding the types of fraud and protective measures can save you from financial loss and the hassle of dispute resolution. Here is everything you need to know about keeping your credit card safe.
Common Types of Credit Card Fraud
Card skimming involves criminals attaching devices to ATMs or POS terminals that copy your card data. Online phishing uses fake websites or emails mimicking your bank to steal card details. SIM swap fraud involves criminals getting a duplicate SIM to intercept OTPs. Vishing is voice phishing where fraudsters call pretending to be bank representatives asking for card details or OTPs. Merchant fraud occurs when dishonest merchants charge your card multiple times or for higher amounts.
Prevention Measures
Enable transaction SMS and app alerts for every transaction regardless of amount. Set transaction limits for online, offline, and international usage through your banking app. Enable and disable international transactions only when needed. Use virtual card numbers for online purchases — most banking apps now offer this feature. Never share your CVV, OTP, or PIN with anyone, including bank employees (banks never ask for these). Check ATMs for loose card slots or unusual attachments before inserting your card.
What to Do If You Suspect Fraud
Immediately block your card through the banking app or customer care helpline. Call the bank’s dedicated fraud reporting number within 3 days — RBI mandates zero liability for fraud reported within 3 working days. File a complaint on the RBI Sachet portal and your local cyber crime cell. Keep records of all communication with the bank including complaint numbers and email confirmations. The bank must resolve your complaint within 90 days.
RBI Guidelines on Card Fraud Liability
Under RBI’s 2017 circular on customer liability, you have zero liability for unauthorized transactions reported within 3 working days of receiving the transaction alert. Liability is limited to ₹10,000-₹25,000 if reported between 4-7 working days. Beyond 7 days, liability is determined by the bank’s policy. This makes quick reporting absolutely critical for protecting yourself.
Are contactless payments safe?
Contactless payments (tap-to-pay) have a ₹5,000 transaction limit without PIN, which limits fraud exposure. The transaction uses encrypted tokenized data rather than actual card numbers, making it more secure than traditional swipe transactions. However, if your card is stolen, someone could make multiple small contactless transactions before you block it.
Should I use my credit card internationally?
Enable international transactions only when traveling or making legitimate foreign purchases. Disable immediately afterward. International transactions incur 1-3.5% forex markup charges. For regular foreign spending, consider cards with lower forex markups like Niyo or IDFC FIRST.