In recent years, financial fraud has surged dramatically in India. According to the Reserve Bank of India (RBI), there were over 36,075 cases of financial fraud in FY24, with 29,082 involving digital payment methods like card or internet transactions.
This alarming rise, from just 2,677 cases in FY19, underscores the necessity for vigilance in the digital world. So, what should you do if you fall victim to digital financial fraud?
First and foremost, block your card immediately. You can do this by contacting your bank’s call center or using the bank’s mobile app. The bank will issue a replacement card with a new number, helping prevent further unauthorized transactions. Prompt reporting is crucial as it can minimize your liability and increase the chances of reversing fraudulent transactions. Under RBI guidelines, if you report the fraud within three days, you incur no liability.
However, if you delay reporting or inadvertently share sensitive information like your PIN or OTP, the liability may fall on you. Notably, the ‘Zero Liability’ policy often doesn’t cover business or prepaid cards, unlike consumer cards.
After blocking your card, file a complaint with your local police and Cyber Crime Cell. Major cities have established cyber crime cells specifically to tackle these issues. You can also report the fraud online at Cybercrime.gov.in.
According to a report from BankBazaar, the following documents are needed for fraudulent transaction disputes:
- Cardholder Dispute Form (CDF): Provide transaction details and sign the form.
- Incident Letter: Address it to your bank with your account number, card number, date of loss, details of who had the card when the fraud happened, and how you found out about the transaction.
- Original FIR/Online FIR/Incident Letter: Must have the police acceptance stamp if the fraudulent transaction is equal to or above Rs 20,000.
- Fraudulent International Transaction: An FIR from Overseas Local Police is mandatory if the fraud involves an international transaction and the customer is in the location of the fraud. It is not required if the fraud involves an international transaction while the customer is in India.
- Passport Copy: Including blank pages, is mandatory for fraudulent international transactions and transactions where the geographical location is unclear. If no passport is available, a signed declaration confirming no passport and the customer was not in the city of fraud must be obtained.
To mitigate the risk of fraud, it is advisable to set transaction limits on your card. Use your credit card’s controls to restrict its use to certain places and methods—online, at point-of-sale terminals, or through tap & pay. Different limits can be set for domestic and international transactions, reducing your exposure should your card details be compromised.
Never share sensitive information like card details, PINs, or passwords. Be extra cautious when using public Wi-Fi or unsecured networks for financial transactions. Enable transaction alerts and regularly review your banking statements to catch any unauthorized activities. When making payments at restaurants or fuel stations, keep your card within sight and use EMV chip cards to reduce skimming risk. Be cautious of unusual activity with point-of-sale devices and report any anomalies immediately.
Lastly, be mindful of what you post on social media. Cybercriminals can use your photos or videos to create convincing deepfake scams. Keep your profiles private, stay updated on the latest types of scams, and restrict access to unknown people.
By taking these steps, you can better protect yourself and act swiftly should you ever find yourself a victim of digital financial fraud.