How to Report Unauthorized Credit Card, Debit Card and Net Banking Transactions

A fraud transaction is performed using your net banking, credit card and debit card when someone has acquired unauthorized access to confidential information associated with the bank account. This guide will help you in detecting and reporting unauthorized transactions...

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Unauthorized Credit Card, Debit Card and Net Banking Transactions
Bank Debit Cards and Credit Cards. Photo Source by Pexels.com

With time, the risk exposure of bank accounts has witnessed dramatic changes. The average number of fraud transaction has increased, triggering a hefty loss in the financial sector. In fact, such a growth in fraudulent activities represents how challenging it can be to detect and prevent these transactions- not to mention that net banking, credit and debit card fraud is a major concern that the banking sector has to deal with. 

The conventional methods of control are not able to mitigate such fraudulent incidences and this is the reason why proper fraud risk management is emerging to be the need of the hour. 

How to Detect Net Banking, Debit and Credit Card Fraud?

A fraud transaction is performed using your net banking, credit card and debit card when someone has acquired unauthorized access to confidential information associated with the bank account. The most common forms of fraud transaction occur due to:

  • Stolen credit or debit card
  • Cloning of credit or debit card
  • Phishing through e-mails
  • Hacked mobile apps and bank accounts
  • Stolen OTP and CVV number 

This is the reason why banks often emphasize protecting the confidential information and ensure that it isn’t vulnerable to unethical sources. Despite the measures that are taken, there are scenarios where you might notice a fraudulent transaction and during such situations, you need to act fast by reporting it to the nearest home branch. 

Steps to Report a Fraud Transaction

There are four important steps that should be taken in order to report a fraudulent transaction to the bank and these are explained below:

  • When you are certain that a fraudulent activity has occurred in your account then contact the bank immediately and block the card. Provide necessary details about the transaction and the total money that has been debited from the account. 
  • Gather various documents like SMS records, bank statements and reference number given by the bank.
  • Have a copy of the ID proof and address proof (KYC documents) registered with the bank account. 
  • File a complaint at the nearest police station, you can seek the help of a specialized cyber lawyer for the purpose as well. If the fraud transaction occurred because of the bank’s fault then actions can be taken against their liability.  

Most of the fraud transactions also happen due to the different malicious apps out there. If the transaction is linked to a particular app then do make sure that you provide the location from where it was downloaded supported by a screenshot of the transaction. 

Do You Have to File a Complaint at the Cyber Cell?

After informing the bank regarding the unauthorized transaction, the account holder must file a well-written complaint at the police station. But then, the question arises- whether you have to file another complaint at the cyber cell in case of internet fraud? No, an FIR at the local police station is enough to address the case, as such incidences are automatically forwarded to the Cyber Cell by the police. 

On the other hand, if you want to file a complaint with the Cyber Cell directly then you can do the same as well. There are specific cells deported for every district and the one that would accept your complaint is based on your residential address. 

What About the Liability Incurred Due to Fraud Transaction?

According to the rules of Reserve Bank of India (RBI), in the event, a fraud occurs by third-party and the bank is not at fault then customers do not have to pay for the breach only when such transactions are reported within a period of 3 days. While, those transactions that are reported within a period of 7 days, the liability of per transaction becomes limited to the amount or value that is stipulated by the central bank. For complete protection, RBI has made strict policies for Prepaid Payment Instruments (PPI) including digital wallets like Amazon Pay, PayTm and MobiKwik.    

Average Time Taken to Resolve Fraud Transaction

Once you’ve informed your bank about the unauthorized transaction, as per the policies of RBI it would take 90 days to resolve the problem. The financial institutions or banks reverse electronic transaction into the account within 10 working days (right after notifying the customer). 

Well, it can be stressful when your net banking, credit and debit card information is compromised, but it even makes it more crucial to monitor this confidential information in the future. Hence, remain careful about the online e-commerce sites from where you shop and watch out for the debit or credit card skimmers at the ATM machines.

Related: Rules for Health and Mediclaim Insurance.

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