Credit/debit card fraud in India

Credit/debit card fraud in India

With the advent of new technology, there has been of great help but when it is misused it is, creating problem for people also, likewise the credit/debit card fraud which is occurring these days. The fraudsters, very vividly stealing the data of the debit and credit card and looting the customers of the banks.
There have been several complaints that the, user of the card has not used the card for transaction and an un-authorize transaction has been done or the money has been withdrawn from the account.
The fraudsters have found several ways to steal the money from the account and they are easily doing it and it’s tough to find them or identify that who has fraudulently took out the money.

Credit card generators (CCG):

CCG are computer programs that create valid credit card numbers and expiry dates. CCG generates lists of credit card account numbers from a single account number. CCG software works by using the mathematical Luhn algorithm that card issuers use to produce other valid card number combination(s).

Lost/ Stolen Cards:

When individual loses his card or a card is stolen by someone or when a legitimate account holder receives a card and loses it or someone else steals the card for criminal purposes. This is the simplest way for the fraudsters where they get the information of the cardholders without investing on the modern technology. Fraud occurs when the valid customer’s personal information is taken by the fraudsters. In this fraudster(s) takes control of a legitimate account by providing the customer’s account number or the card number. Fraudster then acquaintances the card issuer as the genuine cardholder to ask the mail to redirect to a new address. In some cases, the fraudster reports card lost and asks for a replacement to be sent.

Cardholder-Not-Present (CNP):

 CNP transactions are performed only on the Internet in such kind of frauds neither the card nor the cardholder is present physically at the point-of-sale. This would have many forms to commit the fraud as there are many types of transactions such as orders made over the phone or Internet, by mail order or fax. In such transaction(s), retailers are not capable to physically check the card or the identity of the cardholder, which makes the user unknown and able to disguise between their true identities. In this, details of the credit card are usually copied without the cardholder’s awareness. Fraudulently obtained card details are usually used with fictitious personal details to make fraudulent CNP purchases. Security Code imprinted on the back of cards can help in prevention of fraud where card details have been obtained but when the card is stolen it won’t be helpful. This is the promising method for fraud prevention.

Fake and Counterfeit Cards:

Another type of fraud where the formation of counterfeit cards, together with lost or stolen cards poses maximum threat in credit card frauds. Fraudsters are always in search of new and more original ways to create counterfeit cards.

Erasing the magnetic strip:

In this type of the fraud, the fraudsters erase the magnetic stripe by using the powerful electro-magnet. Fraudster then tampers with the facts on the card so that they match the details of a valid card which they may have attained. The cashier will then carry on to manually input the card information into the terminal. This type of fraud has high risk because of the cashier would look at the card closely to read the numbers.

Creating a fake card:

In present scenario, we have refined machines where we can create a fake card from using the scratch. It is the expected fraud, though fake cards require a lot of effort and skill to produce it. Present cards are having many security features, all designed to make it tricky for fraudsters to make good quality fraudulent. Furthermore, after introducing the Holograms in the credit cards it makes very complicated to forge them effectively.


Another kind of fraud being committed is skimming which is fast emerging as the most popular form of credit card fraud. Mostly, fraud cases of Counterfeit fraud involve skimming. It is a method where the actual data on a card’s magnetic stripe is electronically copied onto another. Fraudster(s) does this even as the customer is waiting for the transaction to be validated through the card terminal. Card holder doesn’t know about this activity and it is very difficult for customer(s) to identify. In some of the cases, details obtained by skimming are used to carry out fraudulent card not-present (CNP) transactions by fraudsters.


Phishing is a type of fraud planned to steal a person’s identity. It is generally committed via spam e-mail or pop-up windows. It is the phenomenon which works by a wicked person sending lots of false e-mails. E -mails received looks like they come from a website or company you trust. Message tells users to provide the company with your personal details including your payment card details. These companies can also claim that the reason for this is a database crash or the like. For the fraudster might put a link to a website that look exactly like the real one but is in fact a scam site by making the e- mails look even more authentic. These copies are often known as “spoofed websites”


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