Report suspected third-party fraud immediately, secure the affected account and preserve transaction evidence. Quick action can help prevent additional unauthorised transactions and provide the relevant institution with information needed to investigate the incident.
Follow these steps:
- Stop further payments: Do not respond to additional payment requests from the suspected fraudster.
- Contact your bank or financial institution: Report the unauthorised transaction through an official channel.
- Secure your accounts: Change compromised passwords and follow the institution's security instructions.
- Block affected payment instruments: If a card, account or other payment instrument has been compromised, request the appropriate security action.
- Report financial cyber fraud: Call 1930 to report financial cyber fraud immediately, or use the National Cyber Crime Reporting Portal.
- Preserve evidence: Keep transaction IDs, screenshots, messages, phone numbers, email addresses, website links and other relevant records.
- Follow up using the complaint reference: Keep the acknowledgement or complaint number for future communication.
The National Cyber Crime Reporting Portal specifically provides 1930 for immediate reporting of financial cyber fraud.
How can you prevent third-party fraud?
Protecting payment credentials, verifying unexpected requests and monitoring financial accounts can reduce the risk of third-party fraud. Security depends on preventing unauthorised access and responding quickly when you detect suspicious activity.
Use these precautions:
- Never share OTPs, UPI PINs, passwords or card security information.
- Do not approve a payment you did not initiate.
- Verify customer-service contacts through official sources.
- Avoid clicking unfamiliar payment or login links.
- Do not install applications at the direction of an unknown caller.
- Keep your phone, applications and security software updated.
- Review account and transaction alerts regularly.
- Use strong, unique passwords for important accounts.
- Report suspicious transactions immediately.
- Keep records of important financial transactions and communications.
If someone claims to represent a lender regarding an EMI, loan account or repayment, verify the request through the lender's official platform rather than using the contact details supplied in the message.
What legal protection is available against third-party fraud?
Third-party fraud can attract legal action under Indian laws where the facts establish offences such as cheating, personation, identity theft or misuse of computer resources. The applicable provision depends on how the fraud occurred, the evidence available and the specific conduct involved. The Information Technology Act, 2000 includes provisions on identity theft and cheating by personation using a computer resource under Sections 66C and 66D. The Bharatiya Nyaya Sanhita, 2023 also covers cheating and cheating by personation. Section 319 addresses cheating by personation and may provide for imprisonment of up to five years, a fine, or both, subject to the circumstances and applicable legal requirements. If you become a victim of third-party fraud, report the incident promptly to the relevant authorities and inform the concerned bank or financial institution. Preserve transaction records, messages, emails, documents and other original evidence, as these may support an investigation. Where appropriate, seek independent legal advice. Reporting fraud does not guarantee recovery or a particular legal outcome, as this depends on the evidence, circumstances and investigation.
