March 11, 2026 · 5 mins read
Santosh Kumar
Credit card fraud is the unauthorised use of a person’s credit card information to buy goods, take out cash, or otherwise transact without the permission of the cardholder. Such frauds do take place in India as well – phishing, data theft, bogus sites, stolen cards etc., with monetary loss and identity abuse.
Credit cards, they have become such a handy little piece of plastic for shopping, bill paying, flight booking and online purchase. But their ubiquity has also heightened the potential for scamming. Credit card fraud arises when crooks get access to a cardholder’s information and employ them to conduct unauthorised transactions.
Card data can be accessed by fraudsters through phishing mails, spoofed customer care calls, leaked websites or device malware. And sometimes physical cards get stolen or copied by skimmers at ATMs or POS machines.
Or as in India, a lot of cases are fraudsters pretending to be from the bank requesting card numbers, CVVs, OTPs or passwords. Then, once they get these details, they can immediately shop online or send money.
Knowing how these scams occur is the initial step to safeguard yourself from losing your money.
There are multiple ways credit card fraud can happen. Some consist of physically stealing the card, others are digital theft of card information.
Type of Fraud: Card Not Present Fraud
Description: Fraudsters use card details online without having the physical card.
Type of Fraud: Skimming
Description: A device captures card information when the card is used at an ATM or payment terminal.
Type of Fraud: Phishing
Description: Fraudsters send fake emails or messages pretending to be banks to collect card details.
Type of Fraud: Lost or Stolen Card Fraud
Description: A stolen credit card is used for purchases before it is blocked.
Type of Fraud: Fake Customer Support Scam
Description: Criminals pretend to be bank staff and ask for OTP or card details.
They are some of the early warning signs of potential credit card fraud. These unexpected transaction alerts, unfamiliar purchases in your statement or OTP messages for transactions you never made are obvious warning signs.
Occasionally, cardholders will also see minor test transactions. Fraudsters are known to make small payments to test if the card is live before going in for the big ticket junk.
Check your credit card statements and SMS alerts regularly to catch any suspicious activity early.
Also Read: How to Create a UPI QR Code for Your Shop or Business?
If you suspect credit card fraud, acting fast can minimize monetary harm. First, block or freeze your credit card right away via your bank’s mobile app, website, or customer care. Most banks also allow you to temporarily block cards via SMS or internet banking.
Second, report the fraudulent charges to your bank. Reserve Bank of India rules require customers to report unauthorised transactions promptly in order to avoid liability.
Third, update your online banking passwords and check other financial accounts for any unauthorized activity.
Lastly, lodge a complaint with the Government of India’s cybercrime portal if the fraud is related to online scams. This assists officials in monitoring and avoiding comparable offenses.
Also Read: How to solve ‘UPI ID Not Found’ error?
Although banks have OTP verification and fraud monitoring systems in place, cardholders have a significant part to play in preventing fraud as well. Never give your credit card number, CVV, PIN or OTP to anyone. Banks never request those details on calls or texts.
Never store card details on unfamiliar websites and verify that a site is secure before submitting payment info. Safe sites will often start with https and display a lock in the address bar.
You also should turn on transaction alerts and regularly review your credit card statements. Little preventive measures go a long way in minimizing opportunities for scam.
Credit card fraud is an emerging threat in India as digital transactions gain traction. Fraudsters employ everything from phishing and spoof calling to data pilfering and card skimming. Remaining vigilant, safeguarding your information, and responding immediately to suspected fraud will help reduce financial damage and keep your credit card activity secure.
Typically, banks will reverse fraudulent charges if the customer reports them immediately. The Reserve Bank of India mandates that banks typically have no liability to customers who promptly report fraud and who have not willingly released their financial information.
Credit card fraud in itself does not impact your CIBIL score. However, if you do not report a fraudulent transaction to your bank, and the transaction does not get paid, you may create a n missed payment situation, which could impact your CIBIL credit score negatively.
Protect your credit card by keeping it private, setting up transaction alerts, and not clicking on suspicious links. Be sure to check your account regularly. Use secured websites and be sure to block lost or stolen cards immediately to avoid losses.
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