If your credit card has been compromised, here is what you should do
Source: Business Standard
Credit Card(Photo: Shutterstock)
Credit card fraud has become an unfortunate reality for many consumers. LocalCircles had conducted a survey that revealed 47 per cent of Indians have faced financial fraud in the past three years. Highlighting that UPI and credit card fraud are the most common forms of financial fraud. If you find that your card has been compromised, it is crucial to act swiftly to protect your finances and personal information. These are the steps you should take:
Contact your card issuer
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The first step is to immediately call your credit card issuer. Most banks have dedicated helplines for reporting lost or stolen cards. Upon reporting, they will suspend your account and issue a new card with a different number. This action can prevent further unauthorised transactions.
Review your recent transactions
While on the phone with your credit card company, go through your recent transactions carefully. Flag any charges you don’t recognise, no matter how small. Fraudsters often make small purchases before attempting larger ones. Your credit card issuer will guide you through the process of disputing these charges.
File a police report
Filing a report with the police’s cyber cell can be helpful, especially if you are dealing with significant fraud or identity theft. This creates an official record of the incident, which can be useful when dealing with creditors or if the fraud escalates to more serious identity theft issues.
Change your passwords
Change passwords for accounts associated with the compromised card. Use strong, unique passwords and consider enabling two-factor authentication wherever possible to enhance security.
Monitor your credit reports
After your card has been compromised, it is wise to keep a close eye on your credit reports. Look for any unfamiliar accounts or inquiries, which could indicate that the fraudster has attempted to open new credit lines in your name. If you spot anything suspicious, report it to the credit bureaus immediately.
Set lower credit card limits
You can adjust the credit or spending limit on your credit card in real time. For instance, while your credit card may have a total limit of Rs 2 lakh, you can set a spending cap of Rs 25,000. This means the bank will restrict your total card usage to Rs 25,000 within a billing cycle, ensuring that no one can use more than Rs 25,000 from your account.
“There are some sanity checks that users could consider to avoid their cards from being compromised. These include keeping your mobile number always updated with the bank, setting transaction limits wisely and disabling foreign transactions. Alongside, users should be careful about where they use their cards, avoid sharing card details and adding an extra layer of security by changing their passwords,” said Prashant Kumar, founder and chief executive officer of Kredit.Pe.
First Published: Oct 10 2024 | 12:37 PM IST
