Every day, banks and credit card companies advise us to use caution when using our debit and credit cards. On the other hand, those who commit these types of fraud are quick learners and come up with creative ways to trick you.
It happens frequently that you discover you did not swipe the card or authorise the transaction at all. In this blog, we’ll learn how to handle such situations.
Understanding unauthorised or fraudulent transactions
Anything that was not done by you or not authorised by you for others to do is considered an unauthorised transaction in a credit card. Any stranger or someone who steals your credit card or account details for their own gain could make fraudulent purchases. Some of the most popular methods used to carry out fraudulent transactions are listed below:
1. Intercepted cards in transit:
It occurs when you obtain a new credit card or open a new account. When you enter your card into an electronic device, the information on its magnetic strip gets copied, a process known as "skimming."
2. Phishing:
Phishing is the practice of receiving emails pretending to be from banks or government organisations, asking for private information about your credit card or account.
3. Account takeover:
It occurs when you accidentally give a stranger access to your personal data so they can use it to make transactions online.
4. Card loss:
In the unlikely event that your card disappears, it could end up in the hands of a fraudster, who could use it to make purchases until you report it missing and get it banned.
5. Card-not-present (CNP) fraud:
In this case, the fraudster might make a phone call or send a letter using your card information and expiration date.
What should you do if you notice any fraudulent or unauthorised transaction?
1. Block your ATM card on hold
Since no more transactions can be made, this will stop additional card misuse. You can accomplish this by using Internet banking services or contacting your bank's customer care. Move the remaining money to another active current account before your card is blocked.
If you do not already have a current account, you can open one. If you open an ActivMoney current account, be careful to compare current accounts according to their features, current account interest rates, and other bank-provided perks.
2. Speak with your bank
Contact your bank's customer service as soon as possible after blocking your card to report any unauthorised transactions on the credit card. You can report it in person by going to the closest branch. Give your bank all the information they require. Recall that the bank can look into the matter more quickly if you report the problem promptly.
3. Bring up a dispute
You can be requested by your bank to submit a written dispute, along with your customer ID, account number, transaction date, transaction amount, and transaction type.
Report fraud to the police station that is closest to you. Give whatever supporting documentation you have, such as invoices, bank statements, screenshots, text or email alerts indicating the amount deducted, and, if requested, current account statements as well. It will give more background information to back up your claim and assist the authorities and your bank in quickly resolving the problem.
Liability in case of unauthorised transactions on Credit Cards
There are two possible outcomes. Your responsibility is zero if the transaction occurred as a result of fraud or a bank employee's lack of due diligence. Making sure that every online credit card transaction is only authorised based on the OTP obtained on the mobile device is one method to demonstrate such charges. That may be a useful strategy to prevent similar frauds.
The alternative situation is that you were negligent, and the transaction transpired as a result. It's possible that you were unaware of the ATM skimmer or that you clicked on fraudulent emails. If you notify the bank of such circumstances within three days of the transaction, your liability gets nullified. It is something that you have to follow to the letter.
Should you notify the bank of the unauthorised transaction in the credit card within 4–7 days of the transaction itself, your obligation will be the lesser of the transaction value or the bank's decision. The bank determines the liabilities for any period longer than seven days.
Liability in case of unauthorised transactions on Debit Card
When using a credit card, you can cancel the transaction with Visa and MasterCard; otherwise, the matter will be brought to the dispute tribunal. These transactions can be quickly reversed. However, the drawback of using a debit card is that your bank account is charged for the purchase.
The unpopularity of credit has led to a rise in acceptance of debit cards in India. You manage debit card fraud in what way? As in the last instance, notifying the bank should be your first course of action. Before complaining to the bank, if you have an online app on your smartphone, you can block the card or modify your PIN.
You can take some precautions to be safer
- Unauthorised debits are often stopped within seven to ten days. You can, however, take easy precautions to use your card more safely.
- Demand mobile OTP authorization for all transactions, whether online or offline.
- Steer clear of using mobile devices to make online purchases from cyber cafes and public hotspots like malls and airports.
- Ensure you only shop online at reputable, secure (https://) websites and record all of your transactions.
- Never reply to phishing emails that request information about your card number, expiration date, PIN, etc. These are easy ways to commit fraud.
- Ideally, inform your bank that you prefer not to use contactless swipe, even for small-value transactions, and sign up for transaction SMS alerts.
Conclusion
You can report fraudulent purchases and lessen the effects of credit card fraud by following these procedures. Recall that being alert and acting quickly are essential. It can be upsetting to come upon unauthorised transactions in your current account.
Nonetheless, you can minimise the harm and save your finances by remaining composed and acting quickly. It is advised you check your most recent transactions, notify your bank right once, and report the incident to the relevant authorities.
Popular Searches on Kotak811
Kotak 811 | Kotak 811 Insights | 811 Super Account | Super Savings Account Fees And Charges | Best Zero Balance Account Opening Online | Lifetime Free Credit Card | Apply for Image Debit Card | ActivMoney Savings Account | Open Savings Account Online | Savings Account Fees and Charges | Check Your CIBIL Score | Reactivate Dormant Account Online | Digital Savings Account | Complete Guide on Fixed Deposit (FD) | Visa Debit Card | How To Unfreeze Frozen Bank Account | How To Reactivate An Inactive Or Dormant Savings Account? | Zero Balance Current Account Opening Online | Zero Balance Current Account Fees & Charges | Apply for Personal Loan Online | Personal Loan for Education | Personal Loan For Marriage | Personal Loan For Medical Emergency | Personal Loan For Travel | Unsecured Personal Loans | Kotak 811 Mobile Banking App
This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Share
