The popularity of digital forms of payment has made transacting much simpler and convenient. However, that popularity has also led to an alarming rise in instances of financial fraud. A recent primer by BankBazaar titled ‘Secure Payments – A Guide to Transacting Safely’ reports that in 2023 alone, there have been 1.13 million cases of financial fraud, 6659 of which were cases of digital fraud.

Falling victim to a credit card fraud can be very distressing, not just financially but also mentally. At a time when incidents of fraud are rising, it is increasingly important for you to be aware of the recourse available to you. Promptly reporting the incident is the first, most important step when it comes to tackling fraud. The next step is to provide evidence to support the incident so you may recover the lost funds.

What to do if you’ve lost money in a fraud

Report immediately: Inform your bank or concerned financial authority about the incident promptly. The earlier you report, the higher your chances will be to qualify for zero eligibility protection, subject to conditions.
Block your cards: After reporting the incident, request to have your card(s) blocked to prevent further unauthorized use.
Provide relevant details: Save all relevant details of the fraudulent transaction like SMSs, screenshots, emails, transaction details, and any other details. These will be required to report the incident to the concerned authority and help support your case.
File a police report: Contact your cybercrime unit or police station and file a complaint, if it is required. This complaint can serve as an official record and may be useful to the investigation.
Alert your credit bureau: Notify your credit bureau about the fraudulent incident to prevent it from impacting your credit score.
Monitor your accounts: Make sure you track your account activity regularly. Watch out for any suspicious activity and report it to your bank immediately.

Documents Needed to Report a Fraud

The documents you’ll need to report the fraud will depend on whether the transaction has originated within India or abroad. Once you get your card(s) blocked, the bank will issue you a new replacement card. Your blocked card’s account will remain active unless it has been frozen.

Domestic transactions

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Customer Declaration Form (CDF): Signed and filled in Cardholder Dispute Form (CDF) mentioning the transaction details.
Incident Letter with the date and your signature, addressed to your bank. Include details about (a) Account number, card number, and it’s date of loss, (b) Who had the card when the fraud occurred and how did you find out about the transaction, and (c) Any additional information about the fraud.
Original FIR / Online FIR / Incident Letter with the police acceptance stamp. If the fraudulent transaction is equal to or above ₹20,000, providing details of the card and transaction is mandatory.

International transactions

To report international fraudulent transactions, you must submit the Customer Dispute Form and Incident Letter along with the following additional documents to your bank or concerned financial authority:

Copy of your passport is mandatory in case of fraudulent international transactions and transactions where the geographical location is unclear. If you do not have a passport, submit a signed declaration confirming that you do not have a passport and were not present in the city where the fraud originated.
An FIR from the overseas local police is mandatory in case of a fraudulent transaction that has happened at a location where the cardholder was present.
If the fraud has originated abroad while the customer was in India, an FIR is not required.

The customer’s liability in cases of fraud can vary based on how quickly the fraud is reported and the attempts made by the cardholder to protect their information. To avoid falling victim to a credit card fraud, follow safe practices like never sharing sensitive financial information, setting transaction limits for transactions, never leaving your card unattended, using your card only on reliable and secure websites, and regularly reviewing your card statements to track your account activity.

The writer is the CEO of BankBazaar.com