Credit card fraud is on the rise in India, with reports showing 47% of Indians have faced financial fraud in the last three years, mostly through card scams and digital manipulation.
Digital transactions are growing rapidly, but so are scams targeting unsuspecting users. Therefore, awareness and proactive safety measures are more critical than ever to protect one’s hard-earned money.
In this article, we’ll explore 15 common credit card scams in India and offer practical, easy-to-follow tips that can help you avoid becoming the next victim.
Section 1: Understanding Credit Card Scams
Credit card fraud refers to unauthorized use of your credit card or its information to make purchases, withdraw cash, or commit identity theft without your knowledge or approval.
India, with its growing credit card user base and adoption of digital banking, becomes an attractive target for cybercriminals exploiting less secure systems and unaware users.
Advanced technologies like AI, social engineering, and skimming tools have enabled fraudsters to develop more sophisticated and convincing scams targeting Indian consumers daily.
Section 2: Top 15 Credit Card Scams in India (2025)
1. Phishing Scams
Scammers send fake emails, messages, or calls impersonating banks, asking for urgent card updates or verifications. Clicking malicious links gives them access to your sensitive card information instantly.
Avoidance Tip: Always verify emails or messages directly with your bank. Avoid clicking on suspicious links and never share personal or financial information over unknown emails or texts.
2. Skimming Fraud
Small devices called skimmers are attached to ATMs or POS machines to steal card data and PINs. These are often placed discreetly, especially at high-traffic ATMs.
Avoidance Tip: Use chip-enabled cards and inspect ATM machines for unusual attachments or loose card slots before inserting your card.
3. SIM Swap Fraud
Hackers impersonate you to get a duplicate SIM card from your mobile provider. They then intercept OTPs and access your banking accounts.
Avoidance Tip: Report sudden loss of signal to your carrier immediately. Always enable multi-factor authentication for your financial apps.
4. Counterfeit Cards
Fraudsters use stolen card data to create fake or cloned cards that look and work like the original for unauthorized purchases or withdrawals.
Avoidance Tip: Regularly monitor your credit card statements and report any suspicious or unknown transactions to your bank immediately.
5. Chargeback Fraud
A scammer buys a product online and falsely claims they didn’t receive it to get a refund, thereby keeping both the product and the money.
Avoidance Tip: Use secure e-commerce platforms and maintain detailed transaction and delivery records to protect yourself against false disputes.
6. Identity Theft
Fraudsters steal your Aadhaar, PAN, or other personal details to open credit cards or loans in your name, damaging your credit score.
Avoidance Tip: Regularly monitor credit reports and destroy sensitive documents before disposal. Use privacy filters for online sharing.
7. Online Transaction Fraud
Scammers create fake websites or pop-ups during online shopping to steal your card information as you enter it during a transaction.
Avoidance Tip: Only shop from HTTPS websites, preferably well-known ones. Use virtual or prepaid cards for extra safety.
8. Vishing (Voice Phishing)
Fake calls from people posing as bank officials claiming unauthorized transactions are used to trick you into sharing card details or OTPs.
Avoidance Tip: Hang up and call your bank directly. Never disclose your PIN, OTP, or CVV over the phone.
9. Fake Reward Point Offers
You receive SMS or emails promising bonus credit card reward points and asking for your card details to claim them—it's a trap!
Avoidance Tip: Always check with your official bank channels regarding offers. Avoid clicking on random promotional links.
10. EMV Chip Scams
Although chip cards are secure, scammers can use tampered terminals that mimic EMV readers and steal your data without your knowledge.
Avoidance Tip: Make sure POS machines are EMV-compliant and report any device that looks unusual or altered.
11. Interest Rate Reduction Scams
You receive unsolicited calls offering lower interest rates on your card in exchange for a small fee—usually by fraudsters, not real bank officials.
Avoidance Tip: Never pay any fees for such offers. Confirm with your bank before taking any action.
12. Dumpster Diving
Scammers collect discarded bills and bank statements from trash bins and use that information to commit credit card fraud or identity theft.
Avoidance Tip: Shred all sensitive papers before discarding. Never throw entire statements or envelopes directly in the bin.
13. Fake Job/Loan Offers
Scammers lure people with fake job offers or loan approvals that require them to share credit card details or pay registration fees.
Avoidance Tip: Verify the company’s credentials and avoid offers that ask for card details or upfront payments.
14. Public Wi-Fi Risks
Performing card transactions over free public Wi-Fi in cafés or malls can lead to your data being intercepted by hackers on the same network.
Avoidance Tip: Avoid financial transactions over public Wi-Fi or use a VPN for secure browsing and data transmission.
15. Fake Customs Scam
You receive a call claiming a package in your name contains illegal items and demand payment through card to settle customs charges.
Avoidance Tip: Government officials never demand card payments over calls. Report such incidents to the cybercrime portal.
Section 3: General Tips to Prevent Credit Card Fraud
Enable real-time transaction alerts to get notified of all card activity. This helps detect unauthorized transactions and report them quickly to avoid losses.
Always use strong, unique passwords and enable two-factor authentication on all financial apps to add an extra layer of security against cyber threats.
Immediately report lost or stolen credit cards to your bank to block further use. Most banks offer a toll-free number for such emergencies.
Stay informed about the latest scam tactics through official bank awareness emails or websites. Many banks also offer safety guides online.
Use secure credit-monitoring apps like OneScore or CIBIL to track your credit score and activity for any unauthorized financial movements.
Section 4: What to Do If You’re Scammed
Contact your bank instantly to block the affected card. SBI users can call 1860 419 5555, while Axis Bank users can dial the same for immediate assistance.
Register a complaint with the National Cyber Crime Reporting Portal at cybercrime.gov.in. This will ensure legal action is initiated promptly.
Change all affected passwords and enable 2FA on all your financial and email accounts to prevent further damage or access by hackers.
As India embraces digital payments, staying alert is the best defense against credit card scams. Awareness, action, and vigilance can save you from major financial loss.
