It's My Right: What To Do If You Fall Victim To Credit Card Scam? Are You Liable To Repay Bank?

It's My Right: With a significant surge in the digital transactions in India, the number of credit card holders has also increased. The credit cards are beneficial for the individuals by providing convenience, financial security, and the ability to build a credit history. However, with a surge in the online transactions, the cases of digital scams have also increased, leading to inconveniences to the customers. The fraudsters have been using the modern techniques to use the credit card to make the unauthorised transactions or even access someone's funds. Credit card fraud leads to several issues, including loss of the balance amount, debt, credit health damage, and a possible dent on the reputation. However, the Reserve Bank of India (RBI), in cooperation with the banks, has provided several rights to the customers in such cases.

Types Of Credit Card Frauds:

-Card-not-Present (CNP) Fraud: The fraudsters do transactions for online purchases in the absence of the cardholder by using the card details.

- Phishing and vishing: The scammers send fake emails, calls, and texts to lure the customers. They ask the cardholder to provide details to access offers; however, they deduct a significant amount once the details are provided.

- Account Takeover: The fraudsters take control of the credit card by getting the important credentials by hacking.

- Application Frauds: One can obtain a new credit card by using someone's name and key details.

- Skimming: The scammers install devices and hidden cameras on ATMs to get the key details. They use those details usually for online purchases.

Steps To Take If You Are A Victim Of Fraud

- Report the fraud: In case of any fraud, a customer must report it to the bank on an immediate basis. The customers should keep the complaint reference number for future references, and a written complaint should also be lodged at the bank branch.

- Block the card: The customers must block the card temporarily to ensure that further transactions cannot be made.

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- Police Report: A report should be filed at the local police station if the card is stolen or in cases of CNP frauds.

- Consult RBI: The customers can also lodge their complaint at rbi.org.in in case of non-cooperation from the banks.

What Are The RBI Guidelines?

- Banks' responsibility: The RBI has mandated that the banks are responsible to compensate the customers once they are notified.

- Timeline: The customers must report the case to banks within 72 hours to receive full compensation and cooperation.

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- Limited liability: The liability is limited if the complaint is registered between 4 and 7 days.

- Bank Alerts: Banks must provide SMS alerts to the victims to provide updates.

Conclusion

While the cases of online frauds have significantly surged, the authorities are also bringing new changes to limit the damage. The RBI has acknowledged the concern and has mandated tha banks to take necessary action after being informed. The custoers can visit the official website of the RBI if banks do not take the apprpriate action. However, the RBI has also advised the customers to lodge the complaint within three days to reduce the loss. 

(Disclaimer: This article is part of the series 'It's My Right'. The views expressed in the article are for informational purposes only and do not constitute legal advice. To read more articles in the series, click here)