In India, there are various credit card providers in India that issue credit cards based on the applicant’s eligibility. However, credit card frauds have become very common in the country. Credit card fraud has the potential to be exceedingly destructive, especially as people’s reliance on plastic money grows. When a fraudster uses your credit card number and PIN, or a stolen credit card, to make payments from your account without your permission, this is known as credit card fraud. As technology improved, so did fraudulent ways for defrauding credit card holders. Also, the credit card providers like UNI cards and many others also updated their security measures to avoid credit card frauds in India.
No matter how secure your wallet is, fraudsters will find a method to use your credit cards without your knowing. This might be due to a moment when you were not diligent with your credit card. Before you apply for a credit card, double-check that you understand how to keep your credit card secure at all times.
RBI Guidelines
Despite the Reserve Bank of India’s (RBI) rules for preventing credit card fraud in India, the sad fact of today’s digital era is that credit card fraud still occurs in some parts of the country. RBI has taken a lot of precautions to stop these credit card frauds that are happening in the country. Some of those precautionary steps are as follows:
- Online purchases using two-factor authentication.
The first step is to enter your credit card details and CVV code (Credit Card Verification Value). The second step of authentication is the implementation of a 3D Secure Code (Verified by VISA and Mastercard SecureCode).
- Issuance of chip-and-PIN EMV-enabled credit cards.
The RBI has produced cards with built-in chips and PIN protection.
- Option to choose/set an international usage limitation.
According to the RBI, a user can choose to activate or block foreign transactions on his card based on his preferences.
- Data Security Standards for POS Terminals.
RBI has set some Point-Of-Sale security standards to ensure that whenever a user swipes his card to make a purchase the POS system is responsible for handling the complexity of the transaction in the background.
- SMS Alerts.
Every Credit Card transaction triggers an SMS alert to the customer’s registered cellphone number, informing them of all transactions done with their card.
- IVR transactions require a one-time password (OTP).
Interactive Voice Response transactions are those in which you make a payment to a merchant over the phone by submitting your credit card number to an automated system.
The bulk of credit card thefts, on the other hand, are carried out abroad, meaning that credit card information is taken in India and subsequently utilised outside of India. The best part is that overseas purchases just require a credit card number and a three-digit CVV number. Unlike India, there is no multi-layer security verification. Outside of India, the RBI has no jurisdiction. The sole comfort is that if the user demonstrates his innocence by demonstrating that credit card fraud happened as a consequence of the bank’s or its employees’ ignorance, negligence, or complicity in this circumstance, the bank will refund the user for the credit card fraud losses.
However, it is advisable to select a trustworthy credit card company while applying for a credit card. Moreover, you can apply for credit card to avail the benefits that come along with that credit card. In the instance of credit card fraud, a user’s sole recourse is to establish his innocence by demonstrating that the credit card theft was caused by the bank’s or its employees’ ignorance, negligence, or collusion. The bank will pay the user for any losses suffered as a consequence of credit card fraud in this case.
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