Credit card fraud: What to do the moment you spot a suspicious transaction

As per the latest business developments, The moment you see a transaction you did not make, don't wait to see whether another one appears. Check the merchant name and amount, then contact your card issuer through its official app, website or customer-care number. If the transaction is genuinely unauthorised, ask the issuer to block the card immediately and raise a formal complaint.

Next, secure the card and your other payment channels. If your banking app allows it, temporarily disable online or international transactions while you contact the issuer. If you suspect that your card details have been compromised, getting a replacement card is safer than simply watching the account for another suspicious transaction. Blocking a card stops transactions but does not itself close the credit-card account.

The third step is to preserve evidence. Save the SMS or email alert, screenshot the transaction, note the date and amount, and keep the complaint reference number provided by the issuer. If the fraud happened after a suspicious call, message or website interaction, keep those details too. Don't delete anything until the dispute has been settled.

Reporting quickly matters under RBI's customer-liability framework. For unauthorised electronic transactions in specified circumstances, a customer can have zero liability when the transaction is noted within three working days of receiving the bank's communication. Reporting after that can change the extent of liability depending on the circumstances and the applicable bank policy.

There is another useful protection that many cardholders overlook. Once notified of an unauthorised transaction, the bank must provide a shadow reversal of the disputed amount within 10 working days in cases covered by the RBI framework, without waiting for an insurance settlement. The bank must additionally resolve the complaint and establish liability within the prescribed period, which cannot exceed 90 days under the framework.

Do not stop at the phone call. After reporting the fraud verbally, make sure a formal dispute has been registered and keep the acknowledgement. If the issuer asks you to submit a written declaration, transaction details or other documents, provide them promptly. At the same time, never share an OTP, PIN, CVV or password with someone claiming to be helping recover the money.

Keep paying any legitimate, undisputed card dues while the fraudulent transaction is being investigated. If you are unsure how the disputed amount will be treated on the statement, ask the issuer specifically rather than assuming the entire bill can be ignored. RBI's framework additionally says that in covered credit-card cases, the customer should not bear an additional interest burden during the applicable reversal and liability process.

If the bank rejects the complaint or the matter stays unresolved, escalate it through the bank's grievance-redressal mechanism. If you do not receive a satisfactory response within the prescribed period, you can approach the RBI Ombudsman under the applicable Integrated Ombudsman framework. Keep the complaint number, bank's response, statement and supporting evidence ready.

Finally, check whether anything else may have been compromised. Change passwords if you suspect account access, review recent transactions and remove saved card details from websites or apps you no longer use. Turn on transaction alerts and consider lowering online or contactless transaction limits when you don't need elevated limits.

The five steps are simple: report immediately, block the card, preserve evidence, track the formal dispute and escalate if necessary. In card fraud, speed matters more than trying to figure out exactly how the fraudster got your details before contacting the bank.