Credit cards have made life significantly more convenient, allowing us to make quick and secure transactions anytime, anywhere. Cardholders also benefit from rewards, cashback, and other perks on their purchases. However, as the use of credit cards has grown, so has the risk of credit card fraud. In recent years, such fraud has become increasingly common, particularly during periods of economic uncertainty, making it essential for cardholders to exercise caution when using and carrying their credit cards.
Having your credit card stolen is a serious concern. In such situations, the card may be misused for unauthorised transactions, leading to financial and emotional stress for the cardholder. While credit cards are generally considered safer than debit cards or carrying large amounts of cash, they are not entirely risk-free.
To help you navigate such circumstances, this article outlines the key steps you should take if your credit card is lost or stolen. Continue reading to learn how to protect yourself and minimize the damage.
Steps To Be Immediately Taken After Loss Or Theft Of A Credit Card
Whenever a credit card is lost or stolen, there are specific steps that credit cardholders should take immediately to prevent major losses.
Hotlist your Credit Card
The term “hotlisting a credit card” refers to permanently blocking a card. This could be due to several reasons, including losing the card or theft. The first thing to do when you realize your credit card has been stolen is to report it as stolen immediately. This can be done either by calling the customer care number of your respective credit card issuer or by logging in to your credit card account’s online banking.
Avail the Zero Lost Card Liability Facility
Most banking institutions offer zero liability coverage for lost or stolen credit cards to their credit cardholders. This means that if any fraudulent activity occurs on the card after the loss has been reported to the bank, the bank will cover these expenses. Generally, banks offer zero liability coverage for lost cards, starting from ₹1 Lakh to up to ₹10 lakh.
As per RBI guidelines, cardholders are not liable for any fraudulent transactions once the loss is reported to the bank, provided the bank is informed promptly. Acting quickly, ideally within hours, can significantly reduce the chances of misuse and increase your chances of getting complete protection from the issuer.
File an FIR
A police complaint should be filed at the police station regarding the loss or theft of the credit card. This keeps you protected from any risk of being framed for unscrupulous activity that might take place through your card in the event of loss or theft of your credit card.
Keep a Check on Your Credit Card Statement
As soon as you receive your credit card statement after it has been stolen, review it carefully and look for any transactions you did not authorize. If you find any suspicious transactions, report them to the bank immediately. Pay special attention to foreign or high-value transactions, especially if your card supports international payments.
Request for a new credit card
As a frequent credit card user, you are accustomed to keeping a credit card handy to take advantage of its benefits. If you’ve lost your credit card and it has been permanently hotlisted, you should request a new one as soon as possible.
Update Credit Card Details For Third-Party Payments
You might have stored your old credit card details for various payments and subscriptions, such as mobile and internet services, utility bills, and OTT platform payments, to ensure uninterrupted service. Therefore, once you receive your new credit card, you should update your details on all these platforms.
Things To Do To Prevent Loss Of Credit Card In The Future
Now, once you have experienced the loss of your credit card, you have to be very cautious with your next credit card. The points mentioned below can be considered to prevent the loss or theft of your credit card in the future –
- Avoid sharing your credit card details, such as credit card number, CVV, and PIN, with anyone.
- Keep only those credit cards with you that you use. Avoid carrying all the unwanted credit cards to every place that you visit.
- Keep your credit cards secure in a safe place and never leave them unattended.
- If a credit card is no longer in use, you should block your credit card, and it should be destroyed in such a way that the credit card number is not legible by anybody. Credit cards should be cut with scissors and then destroyed.
Bottom Line
Credit Cards can be lost or stolen if proper attention is not paid to their handling. You should always remain prepared to face such a situation. Necessary steps should be immediately taken once you realize that you have lost your credit card. Steps such as reporting the loss of a credit card and hotlisting your credit card can be important for mitigating any further financial damage. Additionally, banks offer zero liability for lost or stolen credit cards, which means that any financial losses incurred after a reported credit card theft are covered by the bank. And once you have faced such a situation, you should be very cautious the next time while handling your credit cards.