Introduction
Credit cards offer convenience and flexibility. You can use them for shopping, travel, subscriptions, and online payments. However, credit card fraud can turn this convenience into a serious financial problem. A fraudster may use your card details without your permission and create transactions that you never made.
If you notice an unfamiliar transaction on your credit card, do not ignore it. Quick action can help limit your loss and protect your rights.
What Is Credit Card Fraud?
Credit card fraud occurs when someone uses your credit card or card details without your permission. Fraudsters may obtain card details through phishing, fake websites, data breaches, or social engineering.
Sometimes, the fraudster does not need your physical card. They may use your card number, expiry date, CVV, or other information to make an online purchase. Such transactions can happen without the card being physically present.
An unfamiliar transaction does not always mean fraud. A merchant may appear under a different name on your statement, or a subscription may renew automatically. Check the transaction carefully before raising a dispute. If you still do not recognise it, contact your card issuer immediately.
What Should You Do After Discovering Credit Card Fraud?
The first step is to inform your bank or credit card issuer. Use the official customer care number, mobile application, website, or other approved reporting channel. Tell the issuer that you did not authorise the transaction and ask it to block the card if necessary.
RBI guidance stresses the importance of reporting unauthorised electronic transactions as soon as possible. The longer you wait, the greater the risk of further loss. The bank should also provide an acknowledgement or complaint reference for the report.
You should also keep evidence of the transaction. Save your credit card statement, transaction alerts, emails, messages, and screenshots. These records can support your dispute if the bank asks for further information.
Are You Responsible for Unauthorised Credit Card Transactions?
Not necessarily. RBI rules provide customer protection for certain unauthorised electronic banking transactions. Your liability depends on factors such as whether the fraud resulted from your negligence, whether the bank contributed to the loss, and how quickly you reported the transaction.
If the unauthorised transaction happened because of a bank’s negligence or deficiency, the customer can have zero liability under the applicable RBI framework.
Similarly, where a third-party breach causes the fraud and neither the customer nor the bank is at fault, reporting the transaction promptly can protect the customer from liability under the prescribed rules. RBI guidance states that customers who report such transactions within three working days can have zero liability in the covered circumstances.
The situation can differ when the customer shares payment credentials, such as a password or other security information. In cases involving customer negligence, the customer may bear the loss until the bank receives notice of the unauthorised transaction.
This makes timely reporting extremely important.
Can You Get the Fraudulent Amount Back?
You may be able to recover the disputed amount, depending on the circumstances. Once you report an unauthorised transaction, the bank should investigate the complaint and determine the customer’s liability under the applicable rules.
RBI’s financial awareness guidance states that, in covered cases, the bank should credit the amount involved to the customer’s account within 10 working days after notification. The bank should also resolve the complaint within 90 days.
The final outcome can depend on the nature of the transaction, the evidence available, and whether the bank considers the customer negligent.
Can You File a Police or Cybercrime Complaint?
Yes. If someone deliberately used your card details to commit fraud, you can report the matter to the appropriate law enforcement authorities. A police or cybercrime complaint can create an official record of the incident.
Keep your transaction details and communication with the bank. These documents may help investigators understand how the fraud occurred.
Reporting the incident to the bank and reporting suspected criminal activity to law enforcement serve different purposes. Therefore, you should not rely on only one route when the circumstances justify both.
What If the Bank Rejects Your Complaint?
If your bank rejects your credit card fraud complaint, ask for the reason in writing. You can then use the bank’s internal grievance-redressal process and request a review.
If the regulated entity does not resolve your complaint satisfactorily, you may approach the RBI Integrated Ombudsman Scheme, provided the complaint meets the scheme’s requirements. The RBI Ombudsman framework covers complaints involving deficiencies in services provided by covered regulated entities. Customers generally need to complain to the concerned entity first before approaching the Ombudsman.
Keep your complaint reference number, bank response, transaction statement, and other supporting documents when escalating the matter.
How Can You Prevent Credit Card Fraud?
You can reduce the risk of credit card fraud by taking simple precautions. Never share your card PIN, OTP, CVV, or other security information with strangers. Be careful when entering card details on unfamiliar websites. Avoid clicking suspicious payment links and regularly check your card statements.
Turn on transaction alerts so you can identify unusual payments quickly. If you receive an alert for a transaction that you did not make, contact your card issuer immediately.
Conclusion
Credit card fraud can cause financial loss and considerable stress. However, customers have legal and regulatory protections when they face unauthorised transactions.
If you notice a suspicious payment, act quickly. Contact your card issuer, report the transaction, preserve your evidence, and follow the bank’s complaint process. Your liability will depend on the circumstances and the applicable RBI rules.
If the bank does not resolve the matter, you may have further remedies through its grievance system and, where applicable, the RBI Integrated Ombudsman Scheme.
The most important step is simple: do not delay reporting an unauthorised credit card transaction.
