Credit card scam: Told they were activating my card, they drained Rs 1.42L in minutes

Credit card frauds are becoming increasingly sophisticated, with recent incidents highlighting the need for vigilance among cardholders. In Mumbai, scammers impersonating bank officials defrauded at least 19 individuals, with losses exceeding Rs 8 lakh in May 2025 alone. The fraudsters used caller ID spoofing to appear as legitimate bank representatives, convincing victims to provide sensitive information under the guise of activating new cards. "Fraudsters use caller ID spoofing to make it look like they’re calling from the bank. They pose as customer care or telemarketing executives and tell cardholders their new card needs to be activated. Once the victim shares their card number, CVV, and OTP, multiple transactions are executed silently," explained CA Abhishek Walia.

One victim, a working professional, lost ₹1.42 lakh in a matter of minutes. "They sounded convincing and said if I didn’t activate the card now, it would be blocked. I didn’t realise I was being conned until I got the transaction messages," he said. The increasing frequency of such frauds has prompted experts to advise precaution.

Walia emphasises basic safety measures: "Never share CVV, PIN or OTP with anyone over the phone. No bank will ever ask for it." He also recommends verifying caller identities through official bank helplines and utilising SMS/email alerts to detect suspicious transactions early.

If you become a victim, immediate action is crucial. "If you fall victim, act fast. Report the fraud to your bank, lodge an FIR, and contact the cybercrime helpline at 1930 or visit cybercrime.gov.in," Walia stressed. "These aren’t complex frauds—just a moment of misplaced trust is enough. It could happen to anyone."

The Reserve Bank of India (RBI) has set clear guidelines on customer liability. "In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorised transaction to the bank," the RBI states. However, "Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank."

For incidents not attributed to customer or bank negligence, reporting within three days absolves the customer of liability. Delays beyond three days result in limited liability, capped at ₹10,000 or ₹25,000 depending on the credit card limit. "Further, if the delay in reporting is beyond 7 working days, the customer liability shall be determined as per the bank’s board approved policy. Banks shall provide the details of their policy in regard to customers’ liability formulated in pursuance of these directions at the time of opening the accounts."

Banks are required to resolve complaints within 90 days, with a "shadow reversal" mechanism in place to reverse transactions within 10 working days once a fraud is reported. RBI mandates that banks display their policies publicly and inform customers individually.

Recognising the growing threat of credit card fraud, experts urge cardholders to remain vigilant and proactive in safeguarding their financial information. Understanding and adhering to RBI guidelines can mitigate financial loss and empower consumers to act swiftly when faced with potential fraud.