Credit Card Fraud – Cyber Crime

Online credit card fraud cases are rapidly increasing across India, including Bihar. Fraudsters use phishing links, fake customer care calls, OTP scams, cloned cards, malicious apps, and fake e-commerce websites to steal money from innocent users. If you have become a victim of unauthorized credit card transactions, immediate legal action can significantly improve the chances of fund recovery and reduce your liability under RBI guidelines.

Credit card (or debit card) fraud -Cyber Crime involves an unauthorized use of another’s credit or debit card information for the purpose of purchases or withdrawing funds from it.

Top Credit Card Frauds

Credit card fraud cases jumped to 12,069, involving INR 630 crore, during April-September 2023-24, compared to 2,321 cases involving INR 87 crore in the same period the previous year.
Overall, banks reported 14,483 scam cases involving INR 2,642 crore during April-September 2023-24, up from 5,396 cases involving INR 17,685 crore in the same period a year earlier.
Reserve Bank of India’s data also revealed that banks and NBFCs added 1.65 crore credit card users during FY24, bringing the total number of card users to 10.18 crore.
The value of credit card transactions reached a record INR 164,223 crore in March 2024, up from INR 149,206 crore in February, with point-of-sale transactions accounting for INR 60,378 crore in March 2024

1. 1. The email or message sent must not be from a public email domain.
2. 2. Check for the domain name and see if it is misspelled.
3. 3. The email must be poorly written.
4. 4. The email must have suspicious links and attachments.
5. 5. The message reflects a sense of urgency.
6. 6. Request to provide personal and financial information.

1. 1. Use security software to protect your mobile phones and devices. Change your software’s settings to update automatically to address new security threats.
2. 2. Use multi-factor authentication to protect your accounts. It makes it easier for cybercriminals to log in if they have your username and password.
3. 3. To protect your data, back up your computer’s data to an external hard drive, phone, or cloud.

2.Credit Card Skimming

Probably, one of the most common and popular credit card frauds is credit card skimming. Skimming is when scammers tend to fit skimming machines at ATMs or onto card readers. So, when you use your card to make a payment or withdraw money, the machine collects card data, which is then transferred to the scammers. Scammers then use this data to go on a spending spree.

1. 1. Look at the card reader to see if any part of the machine is not aligned. If it looks out of place, a credit card skimmer must have been installed.
2. 2. Examine the card reader. Use your fingers to inspect the skimmer. If it is coming apart in some places or if a piece isn’t solidly connected, a skimmer could be installed.
3. 3.Wiggle the card reader. You might feel something out of alignment when you place your card in the reader, but then it might be too late to stop the data breach; before swiping, try to wiggle the reader. If it is loose, you might encounter a card skimmer.

Use the safest payment method available, such as tapping your digital wallet or using a contactless card rather than inserting or swiping it.

When you type your pin, cover the pad. This will prevent the cameras from recording what you type.

Compare nearby card readers when checking out at any cash points. Even minor differences in them, such as odd colors, small holes, or slight changes in number pads, could indicate the presence of a card-skimming device.

Manipulate the edge of the device. For example, try pulling on the keypad or the card reader to see if any skimming device comes off or moves.

Check security seals at gas stations. Some pumps have special security tape, and you shouldn’t use your credit card if the tape is broken.

To prevent this:

1. 1. Avoid clicking on suspicious links.
   2. Use a virtual keyboard when entering personal information such as your IDs and passwords.
   3. Ensure you have reliable antivirus software to protect your system.

1. 1.Experiencing slow browsing on your device.
2. 2Mouse movements and keystrokes are lagging.
3. 3.The cursor is disappearing.

1. 1. Use multi-factor authentication.
2. 2. Download safe files from safe websites, and do not click on mysterious links sent via unknown numbers or emails.
3. 3. Install antivirus software; it now includes anti-keylogger and anti-spyware protection.
4. 4. Use a password manager to prevent password forgetting. They are also a great way to avoid keylogging attacks.

Hackers can impersonate a credit card holder and request a duplicate SIM card from a mobile operator, asking the operator to deactivate the original number. This allows the cybercriminals to create new IDs, receive OTPs, and execute online transactions.
If you receive a request about a duplicate SIM or notice your number has been blocked, immediately report the issue to your mobile service operator. Staying vigilant and promptly notifying your service provider can help prevent such scams.

1. 1.Suspicious communication attempts can include text messages, emails, and links—anything that asks you to provide personal information.
2. 2. Unrelenting messages and calls to keep you distracted from the ongoing SIM swap scam. The scammers’ motive is for you to turn off your mobile phone.
3. 3. Any communication disruption, such as being unable to make calls or send messages to anyone.
4. 4. Suspicious activity notifications from mobile operators. For example, a message confirming an unusual SIM card activation.
5. 5. Restricted account access can signify a SIM swap. For example, if you unexpectedly get logged off from your accounts and applications.

1. Utilize intelligent online habits. Follow basic safety rules like not providing sensitive personal data online, being wary of phishing emails, or following suspicious links.
2. Secure phone accounts. Most phone companies will let account holders enhance the security of their accounts by setting unique PIN codes, passwords, and security questions – to make changes to the account.
3. When securing accounts with two-factor authentication, use secure applications instead of a phone number. It reduces the chances of SIM hijacking.
4. Ask for call-back services from banks or mobile service providers; it can be handy to always ask them to call the registered number to make any changes to prevent SIM swap fraud from being completed.
5. Avoid linking accounts to a phone number.
6. Register with a mobile service provider that does not allow anybody to change your mobile number without evidence of identification.

1. Look for inconsistencies that indicate any false information about the applicant. Pay close attention to the information provided in the application.

1. 2.Verify the information provided in the application. You can verify employment and references or run a credit card.
2. 3.Scan the application for any risk indicators, such as a lack of details and references.
3. 4.Watch out for any signs of identity theft, like fake National Insurance or Social Security numbers.
4. 5.Ask for additional documents like tax returns or photo IDs to confirm the applicant’s accuracy and identity.

• 1.Artificial Intelligence and machine learning models have proven effective in analyzing vast data and identifying patterns to detect application fraud.
• 2. Robust identity verification.
• 3. Biometric authentication.
• 4. Implement an advanced fraud detection system to catch any suspicious activity early.
• 5. Monitor customer behavior for unusual patterns; fraud detection can keep you one step ahead.
• 6. Use proactive measures. Prioritize application fraud prevention over reactive solutions.

Hacking is one of the most familiar methods of credit card fraud, and it has evolved with advancing technology. Hackers can infiltrate your devices and steal personal information or breach the data of companies you’ve transacted with. It isn’t easy to detect you’ve been hacked. Therefore, exercise caution during online transactions. Avoid entering your details on suspicious websites, and refrain from clicking on unknown links. Criminals can exploit these opportunities to access your data and conduct scams.

• 1. Unrealistic offers are too good to be true. Be wary of such deals, offers, and gifts.
• 2. Pressure tactics like a sense of urgency that allows you no time to reason.
• 3. Phishing attempts via emails and texts.
• 4. Forgery websites or social media presence to lure victims.
• 5. Request to provide personal information.
• 6. Lack of transparency.
• 7.Emotional manipulation is used to gain trust and exploit emotions like greed, fear, and sympathy.
• 8. Negative online reviews.

1. 1. Use strong and unique passwords.
2. 2. Use multi-factor authentication.
3. 3. Be attentive against phishing.
4. 4. Manage your digital footprint. It is the data you leave behind when using the internet. The basic steps would be:
5. 5. Deleting old accounts or applications that you no longer use.
6. 6. Regularly deleting your unwanted browsing cookies.
7. 7.Use privacy tools like anonymous browsers, anti-tracking tools, or private search engines.
8. 8. Keep your devices secure and software up to date.
9. 9.Avoid unknown or questionable websites.
10. 10. Turn off features on your phone that you don’t need, like location or Bluetooth.
    11.Don’t access financial or personal data using public Wi-Fi. Use a VPN if you need to carry out transactions using public Wi-Fi.
11. 12. Use a good-quality antivirus. It will secure your data and device 24/7, blocking threats like malware, viruses, spy apps,

• 1. Constantly review your credit report to examine any suspicious transactions.
• 2. Monitor your bank statements.
• 3. Pay attention to strange emails and messages.
• 4. Stay on top of your tax returns.
• 5. Review your social security statements.

• 1. Often, review your credit card statements to detect any unknown transactions.
• 2. Freeze your credit file so no one can request or look at your credit report.
• 3. Use a good password manager and create different passwords for your accounts. Make sure the passwords are long, unique, and complex.
• 4. Shared documents before disposing of them.
• 5. Install antivirus software to prevent hackers from accessing your personal information.
• 6. Enable multi-factor authentication on devices and accounts.
• 7. With secure overwriting, you can completely wipe your hardware, erasing all traces of your data or transferring data from your old computer to a new one.

RBI Chargeback Process

RBI Chargeback Process for Credit Card Fraud in India

When a fraudulent or unauthorized transaction happens through your credit card, the Reserve Bank of India (RBI) allows customers to dispute the transaction through a process known as a “chargeback.”

Step-by-Step RBI Chargeback Process

1. Immediately block your credit card through your bank app or customer care.
2. Report the fraud to your bank within 3 working days.
3. Register a complaint on the National Cyber Crime Portal.
4. Ask your bank to initiate a chargeback dispute.
5. Submit:
   • Transaction screenshots
   • SMS/email alerts
   • Bank statement
   • FIR or cyber complaint copy (if available)
6. The bank investigates and may provide temporary credit.
7. The merchant bank gets an opportunity to respond.
8. Final resolution is usually completed within 30–90 days.

Under RBI guidelines, customers may have zero liability if the fraud is reported quickly.

Important Note

Many banks allow disputes only within 60–120 days of the transaction date. Delayed reporting can weaken your claim.

Credit Card Fraud Case Timeline in India

Stage	Estimated Time
Card blocking	Immediate
Cyber complaint acknowledgment	24 hours
Bank dispute registration	1–3 days
Temporary credit (if approved)	7–10 days
Chargeback investigation	30–90 days
RBI Ombudsman escalation	30–60 days

Real Credit Card Fraud Situations Reported in Bihar

Example 1 — OTP Fraud in Patna

A Patna resident received a fake bank verification call and unknowingly shared OTP details. Multiple unauthorized transactions were made within minutes. The victim later approached the cyber police station and initiated a bank chargeback dispute.

Example 2 — Fake Shopping Website Scam in Bihar

A customer from Bihar ordered electronics from a fraudulent e-commerce website using a credit card. The product was never delivered. After filing a cyber complaint and submitting transaction proof to the bank, the user successfully recovered the amount through a chargeback process.

Example 3 — UPI Linked Credit Card Fraud

Fraudsters used phishing links to access card-linked UPI credentials. The victim filed complaints through the cybercrime portal and bank grievance system to seek reversal of the fraudulent transactions.

Frequently Asked Questions About Credit Card Fraud