Understanding Card Skimming 

Card skimming is an act where the scammers steal important personal information or identity of a card user and use it to commit fraudulent activities. The scammer attempts to take card information to access records of the card holder. Once the data is in their hands, one can easily create a cloned/fake card with subtleties on it. By this means, scammers carry out fraudulent activities quite easily.

Shielding from card skimming?

  • Always keep your debit, credit and any ATM cards in a safe place. Do not share your personal identification number (PIN) with anybody. Since this information is highly confidential, do not keep any written copy of your PIN details. 
  • Any kind of transaction that cannot be explained should be reported immediately to the bank. Check your account balance to cross-check all your transactions. 
  • Pick a password that would be hard for any other person to guess.

Follow these tips, and you can minimize the chances of getting scammed.

Here are some common questions, answered by experts, in order to help you rectify and take corrective measures in case of any card skimming activity:

  • What should be done if your ATM details have been stolen? – Report to your bank IMMEDIATELY and get the card hot-listed.
  • If you have an account with Bank A and have utilized the card to withdraw cash from an ATM of Bank B, which has been undermined, which bank would it be advisable for you to report to? – Lodge the complaint with Bank A. According to the RBI, “longer the time is taken to notify the bank, the higher will be the risk of loss”.
  • Who returns your money? – The bank that has issued your card is required to pay back the money. If prima facie it is established that you are a victim of skimming fraud, the bank would be required to make the payment forthright. (As indicated by RBI guidelines, the client risk will be zero in case of an unauthorized transaction which happens in a third party breach, where the deficiency lies neither with the bank nor with the client, but somewhere else in the framework, and the client notifies the bank within three working days of receiving the information from the bank in regards to the transaction)
  • Who will raise the chargeback? – A chargeback is always raised by the Issuer Bank. Issuer bank will raise the chargeback within 60 days from the date of the transaction. The Card Issuer Bank shall furnish all documents in support of Cardholder’s transaction dispute.   

While using an ATM, remain observant in case you find something suspicious about the machine. If you think your card has been skimmed, contact your bank or credit card provider immediately.

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