Credit and debit card frauds have touched an all-time high in India. In 2018, around 4000 cases of fraudulent activities had been reported. Besides, the exponential usage of online shopping and transactions has given rise to several phishing scams which have fuelled this menace even further.
If you use your credit and debit cards for online purchases or use them for purchasing goods and services, you should know how to deal with an accidental loss or theft of these valuables. You should also learn what actions you should take to tackle any fraud an unauthorized use of the cards. Here are some of the steps you can undertake to minimize potential frauds or cover your credit/debit card loss.
- Inform your credit or debit card issuer
The first step is to inform the card issuer of the theft, loss or online scam. Ask them to block your card and temporarily ‘freeze’ your online account.
You should also inform the insurer if you have a credit or debit card protection plan in India. Call-up your insurer within 24 hours to inform of this event. Pocket Insurance policies like Wallet Care offered by Bajaj Finserv can help you with blocking of cards. It also covers the financial liabilities of making a replacement credit or debit card. Make sure you avail a card protection plan that offers zero-liability coverage.
- Stay informed about your liability
Remember, once you have reported credit or debit card loss, you are no longer liable for any purchases made with your card. Most leading credit or debit card issuers provide zero-liability fraud protection coverage – so you might not have to cover the legally-allowable amount as well.
You can also benefit from a Fraudulent Charges protection cover offered by Bajaj Finserv along with a Wallet Care plan. It will add additional coverage, including –
- Reimbursements for any unauthorized charges
- Comprehensive financial protection on loss or theft of cards
Also, remember to review your credit card statement carefully and flag any transactions that seem unauthorized.
- Check the coverage of your credit or debit card insurance plan
Ideally, you should select a card protection insurance policy that offers all-around coverage like –
- A single call to block of lost cards
- Complimentary protection against fraudulent activities
- Free PAN card replacement
You can also consider adding coverage on card protection plan if your current insurance plan does not offer these facilities. Some insurance policies like purse care, add extra benefits like anti-malware programs that protect one’s PC against unauthorized access.
- Collect all the information and follow up on records
The moment you report to credit or debit card issuer about fraud or loss, the card issuer will verify all the details. You need to supply personal and card details along with the time of fraudulent activity. You might also have to present a copy of the First Incident Record lodged regarding the incident.
Tips to prevent the future loss of credit or debit card
Although there is no fool-proof way to prevent theft or loss of your valuables, you can implement some measures to minimize these chances.
- Use mobile-wallet payment – Mobile-wallets like Google Pay, PayTM, and Apple Pay eliminate the need to carry debit or credit cards everywhere you travel.
- Keep your cards separate – It is best to keep your cards separate to minimize the chance of losing one item if you face a loss or theft.
After your report a loss or theft, the issuer will ‘freeze’ your account and mail you a new debit or credit card with a new account number. Check your credit report for any discrepancies and report any issues.
Even if you hold a comprehensive card protection plan, it is essential to follow these tips to deal with the loss of debit or credit cards and online frauds.