Credit Frauds In India: Are Your Online Transactions Safe?
Using an online payment service is not always safe, but there are many ways to prevent these cyber frauds in India. You can use the latest cybersecurity technology to make sure your information remains secure. In this article, we’ll discuss how you can avoid these credit card frauds in India.
Read our blogs to learn more about how to protect your online information from cybercrime in India.
Cyber Frauds in India
In a recent report, the leading private sector Bank has concluded the second study on these cyber frauds in India. The study looked at frauds that occurred in the years 2021 and 2022, and the report busts some myths regarding cybercrime in India.
- While the digital transformation of the country is taking place at a rapid pace, awareness among the general public is still lacking. This is evident in the relatively low number of cybercrimes reported in the country.
- Cybercriminals are not afraid of the Indian justice system, as the majority of cyber crimes are bailable offences. In addition, only a fraction of these crimes is reported as crimes, which means fewer arrests. This makes it more difficult to identify fraud and prosecute those involved.
- The criminals behind cyber crimes use various tactics to gain unauthorised access to computers. One such technique is phishing, where the criminal poses as a trusted entity or individual and tries to obtain sensitive information.
- The Indian penal code penalizes cyber fraud as a form of cybercrime. However, newer laws have come into effect to protect the personal information of citizens and businesses. The Information Technology Act 2000 has addressed these new crimes.
Types of Credit Card Frauds in India
With the use of plastic money, Indian customers have increasingly become more interested in online banking transactions. As people have switched to electronic banking, the amount of credit card fraud has also increased. This has increased the likelihood of these credit card frauds in India, which may be caused by a lack of proper regulation matching with current cyber crime trends.
There are many types of credit card scams in India, like instances when fraudsters use the information of other people to use the card to make fraudulent purchases. These frauds can be detected and reported to banks. You can also file complaints online to avoid inconvenience.
One of these credit card frauds in India is the fraudulent use of SIM cards by fraudsters. These thieves steal credit card data, open a credit card account, make purchases and pay the credit card bill. In fact, in one case, fraudsters deceived 2,000 credit cardholders of a famous Public Sector Bank by posing as Bank’s employees and then made fraudulent online monetary transactions.
What is a credit fraud example?
You’ve probably heard about credit fraud – the deliberate use of someone else’s credentials to open accounts, buy goods, and obtain cash advances. This is the most common type of identity theft. Another example of cybercrime involves the use of stolen mobile/computers and information.
Beware of Card Not Present transactions – these are purchases made with your credit card when you weren’t present. These are typical scams, and the only way to identify them is to check your bank statements and bank apps for errors/frauds.
What is the punishment for credit card scams in India?
The number of credit cards increased by 25% in the past year in India. Meanwhile, the number of debit cards increased by 17%. However, many of these cards still use magnetic strips to store customer data and are vulnerable to cloning.
The penal code in India includes several punitive laws that deal with these credit and debit card frauds in India. Penalties for this crime vary from three to seven years in prison. The punishment also depends on the type of crime committed.
For example, I.T.Act, 2000’s section 66C of identity theft punishes those who forged documents with the use of passwords, electronic signatures, or unique identification features. These offences can lead to a fine upto Rs 1 lakh and even jail time upto 3 years.
Can the bank refund my money if I was scammed in India?
The RBI has warned consumers against engaging in unauthorised transactions and has made it possible to request a refund of up to Rs 25,000 in most cases. While unauthorised transactions do happen, most banks have policies in place to reimburse customers.
While it’s rare to find a bank that will reimburse a customer’s money, the bank must make every effort to compensate the customer. A complaint filed within the specified time can result in a full refund. The bank can also buy insurance against credit card scams in India for the customer’s benefit.
While you may get 100% of your money back, deductions may be made if the fraud is discovered after a long time. Moreover, if you have a high credit limit on your card, you may have to bear the credit limit deductions.
If you think you have been scammed, immediately contact the bank to report it. A missed call to 14440 will notify the bank of the scam. Make sure to keep the acknowledgement from the bank. If the bank does not resolve your complaint within the allotted time, you can file a lawsuit.
A complaint filed with the bank should be resolved within 90 days of the incident, or they must compensate the customer as per the terms of the bank’s zero or limited liability policies.
Do you need help tackling these cyber frauds in Ahmedabad?
At Cyberra Legal Services, our expert data privacy & cybersecurity team has collectively spent years delivering dedicated techno-legal services to our clients. Over the years, our proud team has handled all kinds of cyber world issues across every industrial sector with finesse to make us a premier cybersecurity organisation.