MUMBAI: Credit card fraud is escalating across India, with Mumbai witnessing a disturbing surge in recent weeks. In May 2025 alone, at least 19 residents reported losses totalling over ₹8 lakh in scams involving caller ID spoofing, where fraudsters impersonated bank officials to deceive cardholders.
A particularly alarming case involved a working professional who lost ₹1.42 lakh in minutes after receiving a call claiming to be from his bank. The victim recalled.
“They sounded authentic. They said if I didn’t activate the card now, it would get blocked. I gave the card details, and in no time, the money was gone.”
Spoofed Calls & Fake Activations: The Modus Operandi
Fraudsters have been posing as customer service executives or telemarketing agents, claiming to assist with the activation of newly issued credit cards. By using caller ID spoofing tools, they manipulate the phone number display to reflect legitimate bank helplines. Once victims are convinced, they are asked to share confidential information including card numbers, CVV, and OTPs enabling scammers to execute multiple unauthorised transactions silently.
“Fraudsters are getting increasingly clever. They exploit trust and urgency,” said , a financial advisor. “No genuine bank representative will ever ask for OTP, CVV, or PIN over the phone.”
RBI Guidelines & Customer Liability: Know Your Rights
The Reserve Bank of India has issued clear norms to limit customer liability in digital fraud. If the customer’s negligence — such as sharing payment credentials — leads to the fraud, they are liable for losses until the transaction is reported. However, any loss occurring after the fraud is reported must be borne by the bank.
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For fraud not caused by customer or bank negligence, if reported within three days, the customer bears no liability. Delays beyond three days impose a cap — ₹10,000 or ₹25,000 — based on the credit limit. Reporting delays beyond seven working days are handled as per the bank’s internal policy, which must be disclosed at account opening.
Additionally, RBI mandates a “shadow reversal” of disputed amounts within 10 working days of reporting, and full resolution within 90 days. Consumers can report fraud to their bank, lodge an FIR, contact the cybercrime helpline 1930 or file a complaint at cybercrime.gov.in.