How to Detect and Prevent Credit Card Fraud

Credit card fraud happens when someone uses your card details, whether skimmed, phished, or exposed in a data breach, to make transactions you never authorised, and how quickly you report it directly affects both how much you lose and your legal liability.

• Small, unfamiliar charges are often a test, not a mistake. Fraudsters frequently make one small purchase to confirm a stolen card works before attempting a larger one, investigate every unfamiliar transaction, however minor.
   
• Reporting within three working days can mean you owe nothing. For a genuine third-party breach, prompt reporting is the single biggest factor in whether you face zero liability or a share of the loss.
   
• Blocking the card matters more than disputing the transaction. Stopping further misuse comes first, the dispute and investigation can follow once the card itself is secured.
   
• A refund isn't automatic, but it does have a timeline. Once your case falls under the zero or limited liability framework, the amount should be credited back within 10 working days of your notification, not left indefinitely pending.
   

If you notice an unauthorised transaction on your card, block it immediately and report it to your bank or, for a Bajaj Finance card, through My Account or the app, the sooner you act, the stronger your position.

Credit card fraud occurs when someone uses your card details, whether the physical card, its number, or associated credentials, to make unauthorised transactions. Fraudsters obtain this information through several methods: skimming devices that copy your card's magnetic stripe data at compromised terminals, phishing messages or calls that trick you into revealing your card number, expiry date, or CVV, card-not-present fraud, where stolen card details are used for online purchases without the physical card, and data breaches at merchants or payment processors that expose stored card information. Fraud can also occur through a lost or stolen physical card being used before you report it. Common warning signs include unrecognised transactions on your statement, SMS alerts for purchases you didn't make, or unexpected calls claiming to be from your bank asking you to "verify" your card details.

What are the common types of credit card fraud?

How can you detect credit card fraud early?

Regular monitoring is the most reliable way to catch fraud before it escalates:

• Check your card statement and transaction alerts regularly, not just when a bill arrives
• Set up SMS and email alerts for every transaction, however small
• Review any unfamiliar merchant name carefully before dismissing it as legitimate
• Be cautious of a card that stops working unexpectedly, since some fraud techniques disable a card temporarily during misuse
• Never assume a small, unfamiliar transaction is too minor to investigate, testing small amounts is a common tactic before a larger fraudulent charge
   

• Protect your card details: Never share your card number, CVV, expiry date, or OTP with anyone, including someone claiming to be from your bank
• Cover your PIN: Shield your card when entering your PIN at an ATM or point-of-sale terminal
• Use trusted payment channels: Avoid entering card details on unfamiliar or unsecured websites
• Verify unexpected communication independently: Access your bank's app or website directly rather than clicking a link in a message
• Enable transaction alerts: Real-time notifications help you catch unauthorised use immediately
• Report a lost or stolen card immediately: A delay increases your exposure to fraudulent use
• Check your statement every cycle: Even without alerts, a manual review catches anything missed

How to raise a fraud-related request through Bajaj Finance

If a suspected fraudulent transaction involves your Bajaj Finance EMI Network Card, Insta EMI Card, or a co-branded credit card, use the official service channel to report it:

1. Sign in to the Bajaj Finance App or My Account using your registered mobile number and OTP
2. Open My Relations and select the relevant card
3. Go to Help & Support
4. Select Raise Request and choose the relevant transaction or card-related category
5. Provide the transaction date, amount, and any supporting details
6. If the card itself is compromised, use the block card option immediately, available under card management
7. Save the request reference number for follow-up

You should also report the transaction to your bank if the fraud involves a separate credit card, since Bajaj Finance can only assist with matters connected to its own card products.

What should you do after an unauthorised transaction?

1. Block the card immediately through your bank's app, customer care, or official channel to prevent further misuse
2. Report the transaction to your bank or card issuer as soon as possible, delayed reporting can increase your liability
3. Raise a dispute for the specific unauthorised transaction through your issuer's official process
4. Preserve evidence: statements, SMS alerts, and any suspicious communication connected to the fraud
5. Report cyber financial fraud through 1930 or the National Cyber Crime Reporting Portal if the fraud involved phishing, a fake website, or another cyber element

What are the customer liability rules for card fraud?

Customer liability for an unauthorised card transaction depends on the circumstances and how quickly it's reported, under RBI's framework for unauthorised electronic banking transactions:

• Bank negligence or deficiency: Zero liability if the unauthorised transaction resulted from the bank's own negligence or a deficiency on its part
• Third-party breach: Zero liability if neither the bank nor you were responsible for the breach, provided you report it within three working days of receiving the transaction alert
• Delayed reporting: Reporting after three working days may result in limited liability for certain third-party breaches
• Your own negligence: If the loss stems from sharing your card details or PIN, you bear the loss until you report it; transactions after reporting are treated differently

Amounts covered under the zero or limited liability framework must generally be credited back to your account within 10 working days of your notification.

What legal action is possible for credit card fraud?

Legal action depends on how the fraud was carried out and the evidence available. In India, the Information Technology Act, 2000 covers computer-related offences, and Sections 66C and 66D specifically address identity theft and cheating by personation using a computer resource. Report the fraud to your bank promptly, and separately report cyber financial fraud through 1930 or the National Cyber Crime Reporting Portal. Preserve transaction records, statements, and any suspicious communication as evidence. Reporting fraud does not guarantee recovery of the disputed amount, the outcome depends on the facts, evidence, and investigation.