We always Carry Debit and Credit Card in our wallet for our ease and convenience so we can swipe our card quickly for any transaction. 

But sometimes holding them can be a risk too as we may fall into losing some money out of some fraudulent transaction. 

Let’s discuss Credit and debit cards and their differences. 

We will further discuss how the Frauds are committed on Credit and Debit Cards.

What are Credit and Debit Cards & their difference:

As we all know, Credit and Debit Cards, both look almost similar. 

These Cards comes with commonly 16 digit card number, but some companies offer them with 14/15 digits as well. 

These cards have the issue and expiry dates as well.

The Basic difference between both is, Debit Card customers while making the transaction pay from their Saving or Current Account. 

Still, a Credit Card customer has the Credit limit available to their card which they spend and pay later to their Bank without/with charges as applicable.

Types of Credit and Debit Cards Frauds:

These days the frauds related to Credit and Debit cards are on the rise. Fraudsters using different techniques and methods for conning innocent people. 

They are finding new and innovative approaches and duping millions of people and stealing their hard-earned money.

Below are the methods or techniques by which frauds related to Credit and Debit Cards are carried out:

Stealing of Card:

Sometimes a wallet or bag is taken in a crowded place, shops, malls, public transport and other places while people are busy doing something. 

Using a lost or found card:

Sometimes it is possible to lose a wallet or card or left at someplace mistakenly at a shop or other place, and when someone founds it, they may try to use it.

Shoulder surfing:

Sometimes people tend to help or try to get an eye on the pin of the card while someone operates the machine, and later they use this password and card details for committing frauds.

Identity Theft:

Identity Theft means illegally obtaining information about the cardholder such as:

Card Number, Name, Expiry, CVV, etc., using an existing card account or applying for a new card with a fake identity. 

Then these criminals use these cards to commit Fraud through these cards.

Forgetting or Leaving card / PIN:

Sometimes people tend to write pin on card or paper kept with the card. 

They may forget that at some place, which may later lead to Fraud by someone may or may not be a fraudster but get hold of the card and pin easily.

Card Trapping:

Usually done at ATM’s, to retain the card in the machine by using some trip or technique, which later is retrieved by these fraudsters and used for stealing money.

Card Takeover:

The fraudster may use the personal information or details of the cardholder and contact the card-issuing company to get the new card issued and get the hold of this card to commit the Fraud.

Skimming or Counterfeiting Cards:

Fraudsters after obtaining card through transferring information with “Skimmer” device and create a duplicate or counterfeit cards which can later be used for fraudulent transaction or stealing money.

Online Transactions:

Online shopping and bill payments are increasing transactions on cards carried out from computer or smartphone. 

These transactions may also lead to fraudulent transactions.


By using this technique, fraudsters route people to a similar looking website and get their target to conduct a transaction by using their card details. 

Then they steal the information and commit the actual Fraud by taking the details of the card.

Keystroke logging:

Fraudsters send the free software or application which allow them to trace the keystrokes and steal the card details and pin and steal the money.

Using Public Internet or Wi-Fi:

Using the Internet or Wi-Fi at public places allows hackers to trace the smartphone and computer devices in these areas and may steal your information and money in the card.


It is malicious software used to damage smartphone, computer, Bank ATM or Bank Systems. 

It allows the fraudsters to commit Fraud and steal the money.

Merchant or point-of-sale theft:

It is one of the simplest forms of stealing while processing the transactions important information from the card is copied and later used to steal the money.

Phishing & vishing:

Usually done by sending spam emails, which looks like to be genuine and vishing is for mobile phones by sending phone messages. 

The purpose of these is to get the access of the card pin and use to steal the money.

These are few of the methods and techniques used by fraudsters in committing financial crimes and steal the money.

Precautions are better than cure:

These are a few of the tips and precautions to be followed to be secure.

  • Register for Debit and Credit “Alerts” on your card.

  • Always remember to take your card back once the transaction is over.

  • Ask the salesman to process your transaction in front of you.

  • Don’t seek help from others whom you don’t know.

  • Don’t use card if having any doubt of the place or machine.

  • Check the POS / ATM before entering the card or swiping it.

  • Cover the keypad while processing transaction in public or In-front of others.

  • Don’t reveal any information related to card, personal information or pin to anybody, even the card company staff.

  • Use Anti-virus application or software to protect online transactions.

  • Don’t do financial transactions on the public internet.

  • Check statements regularly.

  • Check transaction slip and alert message and match the figures.

  • Don’t take handover of card if the packet is open.

Risk of liability in case of Fraud:

A Fraud did by any means mentioned above,  

RBI rules indicate that the customer is not required to pay the loss only if the transaction is reported within three days of the fraudulent purchase. 

If transaction reported after Three days, but before Seven days then the customer liability will be limited to the transaction value of the amount limit set by the RBI, whichever is lower. 

The transaction reported beyond the Seven days, then the liability shall be determined as per the Card Issuance company’s Board as suggested by the RBI Notification.

***Please refer the latest guidelines or contact the card issuance company for more details on the same.

What to do in case of committed Fraud:

If fraud instance is as stated above, then do the following immediately:

  • Check the alert message and email for the same if authentic.

  • Call the Card issuer company immediately and report the transaction and block the card instantly.

  • Log a Police complaint and register an FIR on asap basis along with the transaction alert, statement of card or account along with id and address proof and record the complete instance.

  • Cyber Crime Cell of the police station will be in charge of handling these complaints.

  • If they refuse to log the complaint, then the same can be registered with Local Court.


These days the number of a fraudulent transaction on Cards been increasing drastically. New cards are coming up with more advanced features and are difficult to Fraud. 

Still, with the increase in technology and advancement, these people are upgrading their skills and creating a tough challenge for technology,

Innovating new and improved ways to steal cards, skim them and do the fraudulent transactions and borrowing money. 

It is better to be more vigilant and take precautions while processing purchases and carrying cards.


About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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