Credit card fraud in India

  • Statistically, plastic money frauds in India have seen troubling growth in the last decade. Online fraud is considered to be third amongst economic crimes prevalent in India. The major forms of cyber fraud include online auctions, internet access services, work at home plans, payment methods using debit/credit card, phishing etc.

    Types of Banking fraud committed -

    Most of the online banking frauds are conducted either through phishing, stealing of banking information or through cloning of credit/debit cards.
    • Stealing of the original credit/debit cards and using the cards at shopping merchants (POS purchases)
    • Cloning/duplication of credit/debit card
    • Phishing scams where the information has been revealed by the customer himself
    • Leakage of PIN/credit card/debit card numbers by the handlers of such information/payment gateways/banks (voluntary or involuntary like hacking, physical intrusion, data breach)
    • Usage of stolen/duplicate/cloned mobile SIM card to receive one-time password (OTP) of mobile/net banking and transaction made using such information

    Legal recourse -

    Your first action should be to reach out the bank to inform them of the fraud. You can claim to get compensated if there is a precedent like your case available already. After that you could file a complaint with the IT Adjudicator of your state or the State Consumer Forum.

    According to the Code of Bank’s Commitment to Customers, the extent of liability of a customer in case of a fraud on internet banking is set at Rs. 10,000 which means that in any case of fraud over internet banking or plastic money being used online, the liability of the customer is only up to Rs. 10,000 and the rest is to be by the bank.

    The maximum liability in other transactions also the customer is only liable up to Rs. 10,000 with the exception that he is not committing fraud himself.

    Criminal Action: Using Sections 66C, 66D of the IT Act, 2000 and Section 420 of the Indian Penal Code, you can pursue a criminal action in order to get the law enforcement to find out the criminal.

    Civil Action: This type of action can be pursued against your bank, the bank whose ATM money was withdrawn at or payment gateways, depending on different situations. 


    These guides are not legal advice, nor a substitute for a lawyer

    These articles are provided freely as general guides. While we do our best to make sure these guides are helpful, we do not give any guarantee that they are accurate or appropriate to your situation, or take any responsibility for any loss their use might cause you. Do not rely on information provided here without seeking experienced legal advice first. If in doubt, please always consult a lawyer.

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