How to keep your debit or credit card safe from hackers & cyber frauds

Many of us make payments with our debit and/or credit cards; if not directly, we add the debit or credit

number to make a UPI payment or direct payments. As the number of people who use their cards to make purchases has increased, so have the number of occurrences of card-related fraud.

The Reserve Bank of India (RBI) has taken a number of efforts to enhance the safety and security of card payments in India. The RBI has mandated that issuers transmit warnings to cardholders for every card transaction so that they are aware of what is happening with their cards.

It is recommended that cardholders sign up for SMS/email alerts, says RBI.

According to RBI’s booklet “ BEWare”, here are the precautions to be taken when using debit or credit cards.

If you are not going to use your credit or debit card for a long, you should deactivate different services, such as online transactions for both local and foreign transactions, and activate them just when you need to use the card.

If the card isn't going to be utilised, the Near Field Communication (NFC) feature should also be turned off.

You must carefully examine the amount displayed on the POS machine screen and the NFC reader before entering your PIN at any POS site or while using the card at an NFC reader.

Allowing the seller to swipe your card away from your sight while making a transaction is never a good idea.

At a POS or ATM, cover the keypad with your other hand while entering the PIN.

FAQs According to RBI 1) How are the transactions carried out through cards protected against fraudulent usage?

All CP and CNP transactions on cards issued in India are secured with AFA. This AFA can be in any form and few commonly used forms are PIN, dynamic one-time password (OTP), static code, etc. The requirement of AFA is not mandatory for transactions where outflow of foreign exchange is contemplated. Similarly, in case of CP transactions (except ATM transactions) using NFC contactless technology, transactions for a maximum value of 2,000/- per transaction are allowed to be undertaken without AFA requirement, Subject to adherence to EMV standards.

2) What are the liabilities of a card issuer in case of fraudulent use of a card by an unauthorised person? In case of CNP transactions, RBI has mandated providing AFA for domestic transactions. If a transaction has taken place without AFA and the customer has complained that the transaction is not effected by her / him, the issuer bank shall reimburse the loss to the customer without demur. Further, liability of a customer in case of an unauthorised electronic transaction is limited as per the provisions of RBI.

3) What are various methods of using a card at a PoS terminal?

Ans: A card can be swiped (Magnetic-Stripe card), dipped (Chip based card) or tapped (Contactless Near Field Communication {NFC} Card) at a PoS terminal