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Things to Do When Hit by a Payment Fraud

  • Highlights

  • Payment frauds are on the rise

  • While paying, make sure that you know who the creditor is

  • Gather all the information and report the fraudulent activity

The number and types of payment frauds have been increasing ever since the wake of COVID-19 pandemic. Fraudsters are constantly coming up with innovative techniques to defraud customers. Even more so through payment platforms online. With consumers being more aware and informed of the fraudsters and their ways and practices, they’re coming up with newer tactics to lure people into falling for fake offers. That said, once customers are hit by payment fraud, seeking redressal might seem challenging. In fact, a lot of people even resort to social media to post their complaints in the hope that the company authorities will step in and take action.

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So, the question of the hour is, what should you do if you have been defrauded?
If you have been hit by digital payment fraud, begin by gathering as much information about the fraudulent creditor as you can. Collect screenshots of any SMS, email, fake website, UPI handle, or mobile number through which the fraudulent transaction took place.

If you have been defrauded via some e-commerce site, you must make it a point to save the URL and screenshots of the merchant’s webpage. If you have fallen victim to ATM skimming, (A fraudulent practice of stealing customer details through an illegal tool placed at an ATM machine) the customer needs to note and report the location of the ATM, its address as well as its number that is listed right on top of the machine.

In addition to this, it is also equally important to note the merchant’s address if you suspect that your card has been skimmed by any point-of-sale device. Go ahead and make a note of transaction ID numbers and report it as soon as you can.

Wait, but who should I report to?
After gathering all the information required about the fake creditor or transaction, it’s time to put it to use. The very first thing that you must do is to reach out to the bank or financial institution with all the details you have and report the incident to them.

Wondering how UPI frauds are happening and how to report them?
In the case of UPI transactions, it is important for you to report the fraudulent activity to both their bank and the concerned payment company. Moreover, if the payment fraud has occurred on an e-commerce website, or at an ATM, you must file a complaint with the concerned bank or financial institution. Once your complaint has been registered with the bank or company, you must also file an FIR at your nearest cyber-crime cell.

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But, what if I don’t get a response from the bank or payment service provider? What then?
In case you do not receive a response from your bank or payment service provider within a month, you can go ahead and reach out to the RBI’s Banking Ombudsman. Even when you are not satisfied with the response from the financial institution, you can get in touch with the RBI’s Ombudsman.

But who bears the loss in case of a fraud?
According to the Reserve Bank of India, a customer is eligible to get back the (lost) amount in full under the below mentioned circumstances:

  • In cases when the fraud occurs due to ignorance or negligence on part of the bank or financial institution

  • If you notify the bank or the financial institution about the fraudulent activity within three working days

If you meet these instances, you will not have to bear the losses and will receive the amount in full from the concerned financial institution.

Savdhaan Rahein. Safe Rahein.

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