Table of Contents
Introduction
Wherever money is involved, fraudsters are always looking for new ways to steal it. No matter how smart you are, credit card and debit card frauds can happen to anyone. Scammers constantly evolve their tactics, making it crucial to stay aware of their tricks to safeguard your hard-earned money.
In India, credit card fraud cases have been rising every year. According to official government data, thousands of people fall victim to such scams, resulting in significant financial losses and stolen personal information. Fraud is not just about losing money—your personal details can also be compromised and sold to third parties.
Who Handles Fraud-Related Cases in India?
The Reserve Bank of India (RBI) and the Indian Cyber Crime Coordination Centre (I4C) oversee fraud-related matters in India. Additionally, the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) allows victims to report fraud cases online. Banks also have dedicated fraud prevention departments to handle disputes and unauthorized transactions.
What This Article Covers:
- Different types of credit card frauds in India
- How fraudsters trick users into sharing sensitive information
- How to identify fraud and protect yourself
- Steps to take if you become a victim of fraud and many more.
By staying informed and adopting best security practices, you can minimize the risk of falling into fraud traps. Let’s dive into the most common scams and how to prevent them.
recent instances of credit card fraud in India
Pune Man Loses ₹2.8 Lakh
In December 2023, a Pune resident fell victim to a scam when a fraudster, posing as a bank official, tricked him into downloading a malicious app. This gave remote access to his phone, leading to unauthorized transactions.
Bengaluru Airport Lounge Scam – ₹87,000 Stolen
In October 2024, a woman at Bengaluru airport was duped into downloading a fake app for lounge access. The app compromised her card details, resulting in fraudulent transactions worth ₹87,000.
India’s Biggest Card Data Breach (2016)
A malware attack on payment systems exposed 3.2 million debit card details, affecting major banks like SBI, HDFC, and ICICI. SBI alone had to replace 600,000 cards.
Credit card fraud statistics: private vs. public bank
| Bank Type | Fraud Cases (FY 2022-23) | Fraud Cases (FY 2023-24) | Notable Incident |
|---|---|---|---|
| Private Banks | 8,979 cases (+69%) | 24,210 cases (+169%) | HSBC Bank: Fraudsters obtained 38 credit cards using fake documents, withdrawing ₹1.26 crore |
| Public Banks | Lower number of cases | Higher financial losses | Public sector banks report fewer cases but face larger financial losses due to loan fraud. |
Why credit card scams are increasing
The primary reason for credit card scams is lack of awareness. With the rise in digital transactions, people frequently share their personal and financial details on multiple websites. Unfortunately, this data often gets sold to third parties, increasing the risk of fraud. Additionally, the absence of strict penalties for fraudsters allows such scams to continue unchecked.
What is a credit card scam & how do fraudsters target them
A credit card scam happens when fraudsters steal your card details to make purchases without your permission or trick you into revealing sensitive information for their benefit.
most important credit card scams in India
Fraudsters use various techniques to get credit card details
Phishing Scams-
A phishing scam is when fraudsters pretend to be from a bank or a trusted company to steal your credit card details.
| How it works | How to avoid it |
|---|---|
| You receive a fake email, SMS, or phone call that looks genuine | Never click on unknown links in emails, SMS, or WhatsApp messages. |
| The message may claim you’ve won a reward, received a free coupon, or that your card is blocked due to an issue. | Banks never ask for OTPs or passwords over calls or messages. |
| Fraudsters ask you to click on a link or call a number to resolve the issue. | Always verify customer care numbers online before responding. |
| Once you enter your details, scammers gain access to your credit card. | Check the sender’s email ID or phone number for authenticity. |
Card Skimming
- Card skimming is a fraud method where scammers attach hidden devices to ATMs, gas pumps, or payment terminals.
- When a card is swiped, the skimmer captures card details, which can be used to create cloned cards.
- Fraudsters may also install small cameras to record PIN entries for unauthorized transactions.
- To stay safe, inspect card readers for tampering and use contactless payments when possible.
How to avoid it
- Use Secure ATMs & Payment Terminals
- Inspect the Card Reader
- Cover the Keypad
OTP Fraud: How it works & how to avoid it
OTP fraud occurs when scammers send an OTP to your mobile and trick you into allowing automatic access. Once they read the OTP, they can misuse it to make unauthorized transactions, draining money from your credit or debit card.
how to avoid it
- Never share your OTP with anyone, even if they claim to be from a bank or a company.
- Banks never ask for OTPs over calls, SMS, or emails.
- Use strong passwords and two-factor authentication for online banking.
- Check the sender’s number or email before responding to any OTP request.
Fake Customer Care Scams in Credit Cards: How to Stay Safe
Fraudsters are actively targeting credit card users by providing fake customer care numbers on the internet and social media platforms. When customers call these numbers, scammers pretend to be bank representatives and trick them into sharing sensitive information like CVVs, OTPs, and passwords.
They may claim that:
- Your credit card has been blocked and needs verification.
- You can increase your credit limit online.
- You need to install apps like TeamViewer or AnyDesk for verification.
Once the victim follows their instructions, scammers gain access to sensitive financial information and steal money.
How to avoid fake customer care scam
✅ Always Call the Official Customer Care Number
- Only use the contact number listed on the official website of your bank or financial institution.
- Avoid searching for customer care numbers on Google, as scammers may list fake ones.
❌ Never Share OTPs, CVVs, or PINs
- Banks and credit card providers never ask for your OTP, CVV, PIN, or password over phone calls, emails, or SMS.
- If anyone requests these details, it is a scam.
⚠️ Avoid Installing Screen-Sharing Apps
- Fraudsters may ask you to install apps like TeamViewer, AnyDesk, or QuickSupport, claiming they need to assist you remotely.
- These apps allow scammers to access your device and banking apps. Do not install them.
📞 Verify the Caller’s Identity
- If you receive a call claiming to be from your bank’s customer care, disconnect and call the official number to verify.
- Do not trust unknown numbers that contact you first.
🚫 Do Not Click on Suspicious Links
- Scammers send phishing emails and SMS messages with links claiming to be from banks.
- These links may lead to fake websites that steal your login details.
- Always type the official website URL manually in your browser instead of clicking on links.
🔔 Enable Transaction Alerts
- Activate SMS and email alerts for every credit card transaction.
- This helps you detect unauthorized activity immediately.
🚨 Report Fraud Immediately
- If you fall victim to a scam, report it immediately to your bank and the Cyber Crime Portal: www.cybercrime.gov.in
- Also, block your credit card through internet banking or the bank’s mobile app.
SIM Swap Fraud: How It Works & How to Avoid It
| How it works | How to avoid it |
|---|---|
| 🔹 Fraudsters steal personal details via phishing or data leaks. | 🔹 Never share Aadhaar, PAN, or banking info with unknown sources. |
| 🔹 They request a new SIM by impersonating you. | 🔹 Set up a strong verification PIN with your mobile provider. |
| 🔹 Your SIM stops working, and they take control. | 🔹 Contact your provider immediately if your SIM suddenly stops working. |
| 🔹 They receive OTPs and access your bank accounts | 🔹 Use email or authentication apps for extra security. |
Online Shopping Fraud: How It Works & How to Avoid It
| How it works | How to avoid it |
|---|---|
| 🔹 Fake websites and ads lure customers with heavy discounts. | 🔹Shop only on trusted websites and verify URLs before making payments. |
| 🔹 Scammers ask for advance payments and never deliver the product. | 🔹 Use cash-on-delivery (COD) when possible or secure payment options. |
| 🔹 Fake courier calls demand extra money for delivery. | 🔹 Verify courier details with the official website before making payments. |
| 🔹 .Never click on unknown links in emails, SMS, or social media ads |
Card Cloning Fraud: How It Works & How to Avoid It
| How it works | How to avoid it |
|---|---|
| 🔹 Fraudsters install skimmers on ATMs or POS machines to copy card details. | 🔹 Inspect ATMs and card machines for any suspicious devices before inserting your card. |
| 🔹 Hidden cameras capture your PIN while you enter it. | 🔹Cover the keypad while entering your PIN at ATMs or shops. |
| 🔹 Dishonest employees at restaurants or shops swipe your card on hidden devices. | 🔹 Use contactless payments or UPI to avoid physical card swipes. |
| 🔹 Cloned cards are used for unauthorized transactions. | 🔹 Enable SMS alerts for every transaction to detect fraud quickly |
Fake Reward & Cashback Offer Scams: How It Works & How to Avoid It
| How it works | How to avoid it |
|---|---|
| .🔹 Scammers send fake SMS/emails claiming you’ve won cashback or rewards. | 🔹 Verify offers only on the bank’s official website or app. |
| 🔹 They ask for card details or OTP to claim the reward. | 🔹 Banks never ask for OTPs, CVVs, or PINs for rewards. |
| 🔹 Fraud links redirect you to fake websites that steal login details. | 🔹 Never click on unknown links in messages or emails. |
| 🔹 They demand a “processing fee” before giving the cashback. | 🔹 Legit rewards don’t require advance payments. |
How to identify credit card scams
✔ Unusual Transactions or Alerts – Unexpected charges or transaction notifications.
✔ Fake Emails or Messages – Suspicious emails, SMS, or links from unknown sources.
✔ Suspicious Phone Calls – Calls asking for OTP, PIN, or card details.
✔ Unexpected Credit Limit Changes – Sudden increase or decrease in your credit limit without request.
✔ Unauthorized Changes in Registered Details – Changes in mobile number, email, or address without your consent.
how to protect yourself from credit card fraud
✔ Never Share OTP, PINs, or CVV – Banks never ask for these details.
✔ Enable Transaction Alerts – Get instant SMS/email notifications for every transaction.
✔ Use Secure Payment Gateways – Always pay through trusted and encrypted platforms.
✔ Avoid Saving Card Details – Never store card information on unknown websites.
✔ Check Statements Regularly – Review transactions to spot unauthorized activity.
✔ Use Virtual Credit Cards – Generate temporary cards for safer online purchases.
✔ Set Lower Transaction Limits – Reduce risk in case of fraud.
✔ Report Lost or Stolen Cards Immediately – Block the card and inform your bank.
Steps to take if you are a victim of credit card fraud
✔ Contact Your Bank Immediately – Report the fraud and seek assistance.
✔ Block Your Credit Card – Prevent further unauthorized transactions.
✔ File a Complaint with Cyber Crime Authorities – Report at www.cybercrime.gov.in.
✔ Monitor Your Account – Keep checking for any suspicious activity.
How to Dispute Fraudulent Transactions
✔ Raise a Dispute with Your Bank – File a chargeback request for unauthorized transactions.
✔ Provide Evidence – Submit statements, transaction details, and any proof of fraud.
✔ Follow Up Regularly – Stay in touch with your bank until the issue is resolved.
Role of Banks and RBI in Credit Card Fraud Prevention
✔ Banks’ Security Measures – EMV chip cards, real-time alerts, AI fraud detection, and secure payment gateways.
✔ RBI Guidelines – Mandatory OTP for online payments, tokenization, zero liability for timely reporting, and limits on contactless transactions.
✔ Two-Factor Authentication – Adds an extra layer of security, prevents unauthorized access, and ensures user verification.
future of credit card security in India
✔ AI & Machine Learning in Fraud Detection – Banks will use AI to detect suspicious transactions in real time and block fraud instantly.
✔ Biometric Authentication – Fingerprint, facial recognition, and voice ID will replace PINs and passwords for safer transactions.
✔ Trends in Digital Payment Security – Tokenization, contactless payments, and encrypted transactions will make credit cards more secure and fraud-proof.