What do you understand by Fraudulent transactions: Don’t know about it? Here’s what it actually means today’s – Fraudulent transaction are transactions conducted using of credit card information without authorisation from the cardholder. Theft of the card number or the debit/credit card is the most common reason for fraud.

Cardholders who see incorrect charges on their credit cards statements may dispute the charges by contacting their bank. The bank or credit card provider will conduct an investigation and return the money to the cardholder.

How to identify fraudulent transactions

Hackers have become adept at securing information online through a variety of methods. They often pose as real credit card holders and ask for sensitive data, then steal personal information via using below methods:

1. Online Transaction Fraud.

The risk associated with online transactions are particularly high since fraudsters don’t necessarily need to have the actual cards, only to have access to the details stored digitally. They can also get away with it because it’s so difficult for sellers to verify who is making the purchase.

2. Email Fraud.

Email scams have existed for as long as email. These scams entail obtaining your personnel information from you to the benefit of criminals or by installing malware on your device.

3. Mobile Transaction Fraud.

A growing number of customers are turning to the mobile payments for convenience reasons. However, as the popularity of mobile channels increases, fraudster are increasingly targeting mobile payments. Since devices can easily be stolen, mobile ecommerce is especially vulnerable due to the huge number of available apps. Once thieves gain access to an app data, they can make purchases through the “keep me logged in” feature.

4. UPI Frauds

In an effort to take advantages of people, fraudsters claim to send money using UPI, but promise to do so in an urgent manner.

5. SMS Frauds

Fraud involving mobile phone text messages uses text messages to entice victims to call or visit a fraudulent link or website to download malicious content.

The hacker sends a text that looks like a bank SMS, but which contains a link. Clicking on the link leads to the installation of malware on victim’s phone, enabling the attacker to take control of the device. Fraudsters initiate internet banking transactions from the victim’s account and have early access to the generated OTP in order to steal money.

6. Fraud Transaction Through QR code scan

Nowadays many fraudsters frequently entice customers to scan QR codes through their phones using various pretexts.

Scammers have come up with a variety of clever ways to trick people into paying through QR codes as more and more people rely on online payments platforms.

7. Social Media Frauds

Using social media, fraudsters advertise bogus investment opportunities and connect directly with people to encourage them to invest. They promise huge returns, often in share market, in return for money.

A fake social media profile can easily reach millions of people, and hackers can hack into existing profiles to get friends to betray you.

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How to report fraudulent transactions in India

A fraudulent transaction is when your credit or debit cards is used to make payments or withdraw cash without your permission. Your credit card may be physically stolen or information may be stolen through phishing or skimming.

For victims of cyber fraud to report financial fraud, the Indian Government has established the national helpline number “1930”.

Whenever you find that an unauthorized transaction has been made on your account, you should follow these steps.

  1. Immediate connect with your respective Bank: As per RBI regulations, if an illegal transaction is reported immediately, the bank will reimburse the account holder in case they determine there was no fault on their side.
  2. Immediately notify the police or file a fraud report.
  3. Put your money in your new account and block your current one.
  4. Keeping an eye on your credit and account is essential.

The IT Act gives cyber-crimes global jurisdiction, which means that complaints can be filed with any of the cyber cells in India, regardless of the location of the original crime. India currently has a large number of cybercrime cells. Below you will find the list of all cybercrime cells in India.

Step:1 A fraudulent transactions complaint must be registered in writing with the cyber crime cell of the city you are in at the time.

Step:2 You must include the following information when filing your cyber crime complaint: your name, contact details, and mailing address. Your complaint should be addressed to the Head of the Cyber Crime Cell of the City in which you are filing it.

Step:3 If you have harassed online, you can contact an attorney for assistance with filing a police report. Additionally, you may need to provide certain documents with the complaint, depending on the nature of the harassment.

Step:4 Next one is to is to file a first information report (FIR) at the local police station if you have no access to any cybercrime cell in India.

Step:5 A complaint that fails to be accepted there can be appealed to the commissioner or to the city’s Judicial Magistrate.

Step:6 In order to report a fraudulent transaction, register an FIR at your local police station. Some cyber crime offenses are covered by the Indian Penal Code.

Step:7 Report the incident at the official CERT In official website.

Computer security incidents are reported to CERTIn, which is a nodal agency for responding to them. It is legally mandated by Section 70B of the Information Technology Act 2000 and Section 8 of the Information Technology Amendment Act 2008 that CERTIn serve as the national agency that performs the following functions in the area of cyber security: Collecting, analysing, and disseminating information about cyber incidents, forecasting cyber security incidents and alerting customers, Immediate measures to deal with cyber security incidents, Coordination of cyber incident response activities. Prepare and distribute guidelines, advisories, vulnerability notes and whitepapers covering information security practises, procedures, prevention, response to and reporting of cyber incidents, as well as other functions related to cyber security as prescribed.

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To identify the level of fraudulent transactions that has been identified, prevented and actual losses incurred, financial institutions are implementing strict fraud control policies and reporting frameworks. To reduce the opportunities for fraud and speed and to speed up the detection of frauds, the company seeks to enhance processes, controls, and frameworks for fraud risk management.

A central fraud registry portal has been set up by the Reserve Bank of India to enable Indian banks to detect cases of fraud by borrowers early on. The portal can be accessed by all banks in the country.


The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.