Fake refunds, reward points and card upgrades: SBI Card flags fraud traps every customer should know

As digital payments become an integral part of everyday financial transactions, fraudsters are adopting increasingly sophisticated methods to deceive credit card users. SBI Card has flagged several common fraud traps, including fake refund notifications, reward point redemptions, credit limit enhancements and fraudulent account reactivation offers.

The advisory comes as India's digital payments ecosystem continues to expand. According to PwC's Indian Payments Handbook 2025–2030, digital payment volumes are projected to reach 617 billion transactions by FY30, with transaction values touching ₹907 lakh crore. Outstanding credit cards are expected to reach approximately 210 million during the same period.

Fake offers and impersonation scams

According to SBI Card, fraudsters frequently impersonate bank officials, credit card representatives, customer care executives and financial advisors to obtain confidential financial information.

Scammers may contact customers with attractive offers, including credit limit increases, card upgrades, reward point redemptions or settlement discounts. Others create panic by claiming that a credit card has been suspended or requires immediate reactivation.

Such communications often contain suspicious links designed to capture card numbers, CVVs, passwords or one-time passwords (OTPs).

Fake refund notifications are another growing concern. Fraudsters may send messages claiming that money has been credited to an account, prompting customers to initiate further transactions without verifying the actual balance.

SBI Card advises customers to confirm payment and refund notifications directly through official banking channels.

SBI Card CEO stresses customer vigilance

Commenting on emerging fraud risks, Salila Pande, MD & CEO, SBI Card, said, "At SBI Card, protecting our customers and earning their trust remain fundamental to our business. As digital payments become deeply embedded in everyday life, we recognise the importance of staying ahead of emerging fraud risks."

She added, "We believe that customer awareness is as critical as technological innovation in preventing financial fraud. We encourage customers to stay vigilant, verify before they transact, safeguard their personal and financial information, and report suspicious activities promptly."

How customers can protect themselves

SBI Card has recommended several precautions to minimise financial fraud.

Customers should avoid clicking suspicious links received through WhatsApp, SMS, emails or social media. Applications should only be downloaded from verified app stores, while screen-sharing requests from unknown individuals should be rejected.

Cardholders must never disclose their PIN, OTP, CVV or passwords, even to individuals claiming to represent banks.

Customers should also activate transaction alerts, regularly review account statements and independently verify promotional offers.

If unauthorised activity is detected, SBI Card advises immediately contacting the bank or card issuer, blocking affected cards and reporting the incident to cybercrime authorities.