Adhil ShettyBankbazaar.com
Your credit card can be hacked in more ways than you can think of. Although most instances of hacking happen while you shop at untrusted sites, your information can be stolen while you use it at various outlets or even on trusted sites. Your personal information can be leaked if a third-party company like a retailer gets hacked, as it happened to the US retail giant Target last year. Malicious software that gets downloaded through mails and apps can also take information from your system or mobile phone. All these present serious and significant challenges to card users.
If you find yourself conned by hackers or feel that your financial data has been compromised, the matter must be reported immediately. Here are some immediate steps you should take when faced with a card hack.
Inform your bank immediately
If you notice any unauthorized transactions in your bank account or card statement, or if you feel that your information has been compromised on any sites, the first and the immediate step is to inform your bank. All banks and card companies have a 24/7 customer care helpline number, which is available on the card itself, or on their official websites and on all printed materials published by the bank. The sooner you notify the bank, the quicker they can start resolving it. Also, most card issuers offer priority services on their IVR or phonebanking systems to report malicious use of their customers’ credit cards.
Ensure your card is blocked immediately
On filing a complaint of hacking, usually banks would block your card immediately. Re-check with the customer care executive if your card has been blocked and the PIN has been reset. If the personal information has been leaked, it is always good to cancel the card and get a new one. Banks will send you a new card, but you will have to wait for a week or two to get it.
Send a written communication
Make sure that you have noted down the reference number of your communication with the bank regarding the financial fraud. Following the tele-communication with the helpline number, you should send a written communication to the bank’s customer care id. To make it more effective, file the written complaint to the next level person. All proofs of the fraudulent transactions, like the screen shot if any, copy of the statement, e-mails or alerts you received etc, should be filed along with this.
For debit cards
If the hack happened on your debit card, visit the branch the same day or the next day and submit a physical letter informing the bank about the same. You can also add the reference number of your previously lodged complaint in the letter. Keep two copies of the letter and make sure to receive a stamped copy of the letter for your reference.
Be firm
If the card has already been used to make any purchase or cash withdrawals, banks may be initially reluctant to consider it as a case of fraud. One may need to be adamant with the bank and even file a police FIR if needed to convince the bank of the financial fraud. Fraudulent transactions usually take place without 3D secure PIN or mobile verification. So, it is crucial for you to get the bank to act in your favor by protecting your money.
Ensure acknowledgement
Once you lodge a complaint through mail, the bank is supposed to revert on this within 24 hours. If you are not getting any response from the bank through mail, follow up with the next level of escalation. You can contact the customer care to get the e-mail id of the next level person. This may sometimes be available on the bank’s official website as part of their escalation matrix.
Follow up regularly
The bank may revert by mentioning a specific timeline that may be required to investigate further on the case. It may vary from 15 days to 41 days, depending on the complexity of the issue. Acknowledge the mail and be patient till then. But keep following up with them on the mentioned date.
Do not hold the payments
If it is a credit card in dispute, do not stop paying the bills, thinking that you have already reported on this. You are supposed to pay the bill on time, unless the bank reverses the transaction. If the fraud has been proved, the bank will automatically reverse that amount to your account. So be regular with your payments. However, if the amount in dispute is huge, you can take special permission from the bank to hold it until it is cleared.
If the verdict is against you
If the verdict is against you, or if the bank is prolonging the investigation, you can contact the Grievance Redressal Cell as well as lodge a complaint at the Banking Ombudsman to investigate further about this and to take immediate action. You can also opt to take the legal route through a consumer court, if you feel that you have not received a good response from the bank.
Most importantly, once you receive your replacement card, make sure to update it on all on automatic payments that you are making to avoid any bounces in the coming months. If there is a big delay in the dispute resolution, check your credit report to see if there are any remarks on it by the bank.
As a golden rule, never ignore any transaction – even if it is a small one – on your card statement because hackers may test with small amounts initially.
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