Victim Of Financial Fraud? Here’s What to Do Immediately
Latest RBI data shows that digital fraud cases in India have surged by over 10% in the last two years.
We’ve all experienced that mini-heart attack moment—a suspicious text message from a “bank,” an unauthorized transaction alert, or a phone bill charging us for services we don’t even remember signing up for. You’re not alone.
Recent data from the Reserve Bank of India (RBI) shows that digital fraud cases in India surged by over 10% in the last two years. The National Cybercrime Reporting Organization (NCRP) reported that since 2021, victims have lost up to Rs 10,300 crores to cyber fraud. With NCRP receiving up to 67,000 calls a day, the scale of this issue is staggering, says Adhil Shetty, CEO of BankBazaar.com.
Sound the Alarm
The moment you suspect fraud, your first step should be to call your bank immediately. Time is of the essence when it comes to limiting damage. Most banks offer 24/7 fraud helplines for exactly this scenario. Freezing your account can prevent further unauthorized transactions.
Shetty emphasises, “The first thing you should do is inform your bank immediately. If you act quickly, they can block the scam and sometimes even reverse the transaction.” The RBI's Zero Liability Policy further protects you: if you report unauthorized transactions within three days, you won’t be liable for any loss. In 2023 alone, fraud cases involving bank transactions totaled Rs 36,342 crores, underscoring the importance of swift action.
After contacting your bank, file an FIR with your local police. For cyber-related fraud, you can also report it on India’s cybercrime portal (cybercrime.gov.in). Filing an FIR is crucial for documenting the crime and increases your chances of recovering lost funds.
The RBI reported 4,071 cyber fraud cases in the fiscal year 2023, highlighting the need for formal documentation when addressing fraudulent activities.
Notify the Right Authorities
In addition to your bank and local authorities, notify relevant financial watchdogs like the RBI’s Banking Ombudsman. The ombudsman acts as a mediator between you and your bank, especially if you face delays in addressing the fraud. Having a mediator on your side can expedite the process and help recover lost funds.
You can also file fraud-related complaints with the National Consumer Helpline (NCH), which operates under the Ministry of Consumer Affairs.
Despite the rising prevalence of fraud, only 25% of victims in a 2024 Data Security Council of India survey reported contacting authorities beyond their bank. This lack of reporting diminishes the chances of recourse, so ensure that the fraud is documented at every possible level.
Prevention is Better Than Cure
Addressing immediate fraud is important, but protecting yourself from future scams is equally crucial. Regularly update your passwords, avoid suspicious emails, and enable two-factor authentication for sensitive accounts. Scammers are evolving, and so should your defenses.
Shetty warns, “Fraudsters create a sense of urgency and psychological pressure, pretending to be someone they’re not. For example, you might receive a call saying your electricity will be cut off if you don’t make an immediate payment via a link they send.”
He offers a simple framework called C.H.E.C.K.:
C: Check the credibility of the person or organization asking for money.
H: Be cautious if they’re in a hurry.
E: Ask for extra information—why do they need your OTP or PIN?
C: Confirm by visiting the website directly.
K: Control the transaction—initiate it yourself from a trusted platform.
RBI’s Zero Liability Policy
Shetty explains that the RBI has established a Zero Liability Policy. If you report a fraudulent payment and haven't made any clear mistakes, you’re protected. If you report within four to seven days, your maximum liability is capped at Rs 10,000 for most transactions. The longer you delay, the more financial responsibility you may bear, so acting quickly is vital.
As Shetty states, “Zero Liability Policy is a strong consumer protection measure. The key takeaway is to act swiftly, ideally within three days, to avoid bearing the loss yourself.” This policy empowers consumers by ensuring that prompt action can save them from significant financial repercussions.
Falling victim to fraud can be mentally exhausting. A 2022 KPMG survey found that 43% of fraud victims in India experienced stress and anxiety after being defrauded. Don’t let this experience shake your confidence—financial fraud can happen to even the savviest individuals.
By taking immediate action—informing your bank, freezing your credit, and filing the necessary reports—you can minimize the damage and potentially recover your funds. Remember to act quickly, take advantage of protective measures like the RBI’s Zero Liability Policy, and stay vigilant against future threats.
