Credit card fraud: How to be safe
With the government encouraging digital payments through several initiatives, the growing popularity of e- commerce has led to an increased adoption of credit card transactions in India. During the period between October 2016 and September 2017, the total amount of credit card transactions at pointofsale ( POS) terminals registered a growth of 25 per cent. However, increased adoption of credit card also brings with it increased chances of credit card fraud. Fraudsters can duplicate your card at POS terminals and ATMs or by securing your customer details over the phone ( vishing) or through e- mails ( phishing).
Sahil Arora — VP and Head of the Payment Products, Paisabazaar. com suggests a step- by- step guide on what should be your course of action after detecting a credit card fraud.
Inform the bank
The first thing to do on detecting fraudulent transactions is to report them to your card issuer immediately to block your card from further misuse. You can also report the fraudulent transaction and get your card blocked by visiting your credit card issuer’s website or its branch premises. Who pays for the losses arising out of the fraudulent transaction?
RBI has made sweeping changes regarding the liability of credit card issuer and credit card holder arising out of credit card fraud. The changes are primarily aimed at increasing transparency in fraud reporting and resolution procedures of credit card issuers. By introducing differential customer liability for third- party breaches, the changes seek to encourage cardholders to exercise more vigilance
◗ Be quick to report to the card issuer to block the card after detecting a fraud with your bank account ◗ The card can also be blocked by visiting your credit card issuer’s website or its branch premises
and early reporting disputed transactions the cardholders.
Your liability for the fraudulent transaction will be zero if it is caused by negligence or deficiency on the part of the card issuer. In case your negligence led to the fraud, you will bear the entire loss till the reporting of the unauthorised transactions. Any losses caused after the reporting of the unauthorised transactions will be borne by the card issuer. The bank will bear the entire cost if the fraud was caused by a third party breach and you reported that transaction to your card issuer within three working days of receiving any communication regarding that transaction. If there is a delay of four to seven working days