The Indian Cybercrime Coordination Centre (I4C) reported that over the last three years, digital financial frauds have led to staggering losses worth Rs 1.25 lakh crore. In 2023 alone, over 13,000 cases of financial fraud were recorded, nearly half of which were digital payment fraud (card/internet). Victims of digital financial fraud reported to have lost at least Rs 10,319 crore.
Bankbazaar has released a primer which covers various types of fraud and the warning signs to watch out for.
Types of financial fraud & how to recognise them
 "Explained: Types of payment frauds and what to do if you lose money (1)")
Financial fraud severely impacts personal finances, causing direct monetary losses and significant stress. Victims face drained accounts, unauthorized transactions, damaged credit scores, and a loss of trust in financial institutions. The emotional toll includes anxiety and distrust, lasting well beyond the resolution of the fraud.
Have you fallen victim to UPI or bank fraud? Don't panic! Here's a quick guide to minimize damage and recover your funds:
Act Fast, Report Immediately:
Every second counts! Contact your bank or UPI app provider as soon as you suspect fraudulent activity. Early reporting increases your chances of getting a full refund (subject to bank policies).
Block Your Accounts:
Request your bank to freeze your accounts and block your debit/credit cards to prevent further unauthorized transactions.
Gather Evidence:
Collect all relevant documentation. This includes emails, SMS alerts, transaction details, screenshots, or anything related to the incident. They'll be crucial for your dispute resolution claim.
Dispute Resolution Process:
Follow your bank's dispute resolution procedures diligently. Meet deadlines and provide all requested documents to strengthen your case.
File a Police Report:
In some cases, filing a complaint with the local cybercrime unit or police might be necessary. This official record can aid further investigations.
Protect Your Credit Score:
Inform your credit bureau about the fraudulent activity to prevent it from damaging your credit score.
Stay Vigilant:
Monitor your accounts regularly to identify any suspicious activity quickly. This allows you to report it promptly and minimize further losses.
Remember: By acting swiftly and following these steps, you can increase your chances of recovering your hard-earned money and protect yourself from future fraud.
Documents you will need
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To report a fraudulent incident or transaction, you must provide the following documents based on whether the fraud is a domestic or international transaction. Remember, once your card has been blocked, it cannot be used again. The bank will issue you a new replacement card with a different number. However, your blocked card’s account will remain active.
For domestic transactions:
- Domestic transactions Cardholder Dispute Form (CDF) with transaction details and signed by you.
- Incident Letter with the date and your signature, addressed to your bank. It must contain details about (a) Account number, card number, and date of loss, (b) Who had the card when the fraud happened and how you found out about the transaction, and (c) Any additional information about the fraud.
- Original FIR / Online FIR / Incident Letter with the police acceptance stamp. If the fraudulent transaction is equal to or above Rs 20,000, it is mandatory to provide details of the card and transaction.
Fraud originating overseas:
In the case of a fraudulent international transaction, you must submit the following documents, in addition to a filled-in Customer Dispute Form and Incident Letter:
FIR from the overseas local police is mandatory if the fraud involves an international transaction and the customer is in the location of the fraud. FIR is not required if the fraud involves an international transaction while the customer is in India.
Passport copy including blank pages is mandatory for fraudulent international transactions and transactions where geographical location is unclear. In the absence of a passport, a signed declaration by the customer confirming that they do not hold a passport & were not in the city of fraud must be obtained. In credit card fraud cases, the customer's liability depends on how quickly the card has been blocked after the fraud is discovered.
Financial fraud statistics
 "Explained: Types of payment frauds and what to do if you lose money (2)")
