Unauthorised payments from your account (2024)

FAQs

What do you do if you have an Unauthorised payment? ›

If you suspect any unauthorised use of your card, contact your card-issuing bank immediately to block your account.

Banks, therefore, employ comprehensive investigation procedures to combat fraud, protect their customers, and preserve their own credibility.

Unauthorized transactions could be made by someone you don't know, who finds or steals your card or your account information. Or they could be made by someone you know but who didn't have your permission to use the card. In either case, you would have to dispute the transactions with your card issuer.

Unauthorized use of a credit card or its information to make purchases, withdraw cash, or transfer funds without the cardholder's permission. Common types include: Card-not-present (CNP) fraud: Card-not-present fraud occurs in online or phone transactions where the physical card is not required.

Generally, any banking or credit card transaction that you didn't make or approve is an unauthorized transaction. Unauthorized transactions may occur when your debit or credit card is lost or stolen. Someone could also steal your identity and use your information to make transactions without your knowledge or consent.

Contact your bank right away. To limit your liability, it is important to notify the bank promptly upon discovering any unauthorized charge(s).

The best bet for getting your money back is to notify your bank of fraudulent charges as soon as possible. But if it's too late and your bank won't refund an unauthorized transaction, you can submit a complaint to government agencies.

Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.

Within 3 days: According to the apex bank of India, if you, as a customer, report any incident of a fraudulent transaction within 3 days of the incident, then you will bear zero liability for it. As a result, the total amount will be refunded to your respective bank account.

Legal Consequences

The consequences of fraud are significant. While lying in personal contexts might damage relationships or trust, fraud can lead to criminal charges, hefty fines, and civil damages.

How do banks detect unauthorized transactions? ›

Banks analyze historical transaction data to identify unusual patterns or anomalies that might indicate fraudulent activities. For instance, if a customer suddenly starts making large transactions from a device they've never used before, it could trigger an alert.

If you've transferred money to someone because of a scam

This type of scam is known as an 'authorised push payment'. Your bank or building society should reimburse you if it's registered with the Lending Standards Board under their Contingent Reimbursem*nt Model Code (CRM Code).

If you notice a bank error in your favor, you should report it to your bank as soon as possible. You cannot keep money that was mistakenly deposited into your account; it must be returned. Failing to report and return the money could result in legal consequences, such as criminal charges.

In the most basic sense, the bank fraud investigation process is relatively straightforward. The bank is alerted of suspicious activity through either the bank's detection system or from fraud claims from customers. They then collect all the information they have before conducting a thorough investigation.

Legally, if a sum of money is accidentally paid into your bank or savings account and you know that it doesn't belong to you, you must pay it back.

Report the Incident to Your Bank

If you used a linked bank account or credit card for the transaction, you might have additional recourse through your financial institution. Contact 1-844-627-3528 your bank or card issuer to report the transaction and inquire about initiating a chargeback.

Contact your bank

After blocking your card, reach out to your bank's customer service immediately to report unauthorised transactions. You can also visit the nearest branch to report it in person. Provide your bank with all the necessary details.

If a cardholder believes a debit from their bank account was fraudulent or has any issues with a purchase, odds are they can call their bank and get their money back.

If someone has fraudulently withdrawn money from your bank account, inform your bank immediately. When you notify the bank, remember to take acknowledgement from your bank. The bank has to resolve your complaint within 90 days from the date of receipt.