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Fraudulent and unauthorized transactions at ATM
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Fraudulent and unauthorized transactions at ATM
Fraudulent and unauthorized transactions at ATM

With the rise of ATM frauds in the country, several customers have expressed concern to tackle such incidents as they are unaware of such scams. To avoid ATM frauds means to covert the keypad as you enter your Personal Identification Number (PIN). As technology evolves, financial scammers update their methods accordingly. It is difficult to prevent frauds in case of Card Skimming, Stealing of Plastic Card, Card Trapping, Cash Shimming, ATM malware, Card Cloning, etc.

Measures to avoid ATM Frauds:

Avoid sharing card or PIN with anyone. The spouses who share a bank account should have different PINs for their debit cards.

Examine the ATM machine before using it, wiggle the card reader or PIN pad. If it appears loose or falls off the machine, it may indicate the presence of skimmer. If any abnormal activity is found or notices a hidden camera, the person should inform the bank staff or police immediately.

If the person is seen using more than one card or is tampering with the machine, do not use the ATM machine or complaint to the bank or police.

Be aware of the fake calls and SMS or emails that claim to be from your financial institution. 

Banks always offers features relating to security; everyone should take advantage of it.

If a debit card is lost or stolen, or information like PIN Card or online banking login has been compromised, one should immediately inform the bank about the incident.

Make a habit of reviewing online account activity or checking the bank statements.

The user should block the card by visiting the bank as soon as he receives a message pertaining to the fraud transaction.


What to do in case of debit card fraud?

The moment a person realizes about the suspicious transaction on a debit card or credit card or any should inform the card issuer immediately and should undertake the following steps:

While filing a written complaint with the bank or card issuer, make sure you carry the following documents along with you:

  • Bank statement of the concerned bank of last six months.
  • Copy of SMS received of the alleged transactions.
  • Copy of ID proof and address proof, as mentioned in bank records.
  • Lodge a complaint in the nearest police station explaining the complete incidence.

After informing the bank about the fraudulent transaction, one should file a written complaint with the nearest Police Station.


As per RBI rules, if a fraud takes place and the bank is not at fault, and the third party committed the act, then the customer is not required to pay, if reported the bank within three days of the fraudulent transaction. A transaction reported after that but within seven days, the liability of customer for the per transaction will be limited to the transaction value or an amount set by the Central Bank, whichever is lower.

RBI notifies that after seven days, the customer liability shall be determined as per the bank’s policy.

As per RBI rules, after informing the bank, the resolution has to be over within 90 days. Bank has to reverse the unauthorized electronic transaction back to the customer’s account within ten working days from the date of notification.

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