A fraudulent card swipe or an unfamiliar online transaction can empty a credit card within minutes, making the first response crucial in determining whether the money can be recovered or the loss must be borne by the customer.
As digital payments rise across India, credit card fraud is becoming more common through phishing links, data breaches, card skimming and OTP scams, placing greater pressure on consumers to react quickly and correctly.
Immediate Action Can Limit the Damage
The first priority after spotting an unauthorised transaction is to block the card immediately to prevent further misuse. This can be done through a bank’s mobile application or internet banking platform, or by calling customer care and asking for an immediate block. It also advises customers to disable international usage and online transactions if those features are not already restricted.
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Many banks now offer instant card control features, and even a delay of a few minutes can allow multiple fraudulent transactions to go through. After blocking the card, the customer should formally report the transaction through the bank’s app, website or helpline, note down the complaint reference number and follow up by email detailing the unauthorised charge.
Liability Depends on Speed of Reporting
The liability depends heavily on how quickly the fraud is reported under Reserve Bank of India guidelines. Reporting within three days of noticing the transaction generally ensures zero liability, provided there has been no negligence on the part of the customer. Zero liability also applies when the fraud arises from a third-party breach such as a data leak or system hack.
Limited liability applies if the fraud is reported between four and seven days, with the customer’s exposure typically capped between Rs 5,000 and Rs 25,000 depending on the type of card. Full liability may apply if there is proven negligence, such as sharing OTPs or PINs, or if reporting is delayed beyond seven days. Blocking the card alone is not enough and that a formal dispute must be raised by filling out a transaction dispute form and providing relevant details such as date, amount and merchant name.
Fraud Prevention Requires Constant Vigilance
Banks usually take 30 to 90 days to investigate such cases, and during that period the disputed amount may sometimes be temporarily reversed, though not in every instance. Customers are advised to monitor their accounts closely after reporting fraud, check statements for further suspicious entries, enable real-time alerts and review auto-debit mandates linked to the card.
For high-value frauds or repeated incidents, experts recommend filing a complaint on the National Cyber Crime Portal or lodging an FIR at the local police station, as this can strengthen the customer’s case. It also lists common triggers such as phishing emails or SMS links seeking card details, fake customer care numbers found online, skimming devices at ATMs or point-of-sale machines, and malware or unsafe applications capturing keystrokes.
It is advised to customers never to share OTPs, CVV numbers or PINs, even with someone claiming to represent a bank. They also recommend keeping low transaction limits for online and international usage, turning off contactless payments when not needed, using virtual cards for online shopping and regularly updating passwords and PINs as practical steps to reduce exposure to fraud.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
