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One of my friend received an SMS at 4:00 AM in the morning stating that his card has been used for an international transaction in USD.  He was amazed to see the transaction as he has never ever did an international online transaction, forget visiting foreign countries.

Bank promptly charged him an amount of around 15000 plus exchange fee and also a warning SMS stating that he should be cautious in transacting in foreign exchange.  For sometime he was perplexed what do do ?

What to do in case you detect fraudulent transactions ?

  1. Raise the matter to the bank immediately.  Make sure that you have not purposely or inadvertently shared your credentials to anyone else.
  2. Ask the bank to block the card and also raise a dispute over the fraudulent transactions.  Banks normally try to defend the transactions, but you be firm and insist on raising a dispute.  Get a reference number for the conversation.
  3. Use this reference number and send a mail to bank immediately stating whatever you have told them in the telephonic conversation.  If possible, send a hard copy too, with a Proof Of Delivery.
  4. The timing of raising a dispute is important, as there are some protection available to the customers from RBI on raising it timely.  If the bank is at fault for the fraudulent transaction,  you are not responsible at any time.  See the below image for the  details on the  maximum liability, time limit for reporting the fraudulent transaction.CardLiability
  5. Notifying the bank as soon as you come to know about the fraudulent transaction (SMS/Mail/Statement) is the key here.  So even if the bank is closed, please talk to the customer care or any other officer and get the complaint number and send a mail immediately.
  6. Normally, it is not you, but it is on the bank to prove that the onus is not on them.  If the bank does not reverse the transaction, you can approach banking ombudsman within 30 days of making your complaint.  You can find the details of the banking ombudsman corresponding to your area from the RBI website  https://rbi.org.in/commonman/English/Scripts/AgainstBankABO.aspx .  The ombudsman can approached by way of email or hard copy letter or even fax.  Your case should get solved ideally by this time.
  7. In case your case is still not solved, you can approach the appellate authority in RBI and finally to the courts.  You will need an FIR to be registered before moving to court with your local jurisdictional police station or cyber police.

This is when you are victim to a fraud.  Prevention is better than cure.  I have written  about preventive steps in a separate blog.  Read This: 18 Tips to Secure Your Debit – Credit Card