Forex cards have become a preferred payment option for international travel. They are convenient, widely accepted, and help manage foreign exchange rates. Yet, like any payment tool, they are not immune to fraud. These cards can be misused if details are compromised. Awareness and timely action play a key role in preventing losses.
How forex card frauds happen
Most cases begin with stolen card information. This may happen through phishing emails, fake customer care calls, skimming devices at ATMs and point-of-sale terminals at merchant outlets. Fraudsters sometimes impersonate bank officials and request OTPs, PINs, or login credentials. Once shared, transactions can be processed quickly, including from overseas locations.
It is important to note that banks have long offered card control features. Customers can switch international usage on or off, set transaction limits, and disable online payments when not required. These safeguards are effective, but they must be actively used.
What to do if you receive an unauthorised debit alert
If you notice a transaction you did not make, block the card immediately through the bank’s mobile app, internet banking platform, or customer care. Most issuers provide 24-hour blocking services.
Review recent transactions and report the unauthorised debit without delay. Prompt reporting improves the chances of limiting liability. Always note the complaint reference number. Never share OTPs, CVV numbers, PINs, or passwords with anyone. Banks do not seek such information over calls or messages.
Liability and reducing risk
The Reserve Bank of India has guidelines on unauthorised electronic transactions. If a customer reports the fraud promptly and has not been negligent, their liability may be limited or even zero. Delayed reporting can increase the customer’s share of loss. To minimise risk, enable real-time transaction alerts and set spending limits. Disable international and online transactions when not travelling. Regularly review account activity to spot unusual charges early.
Precautions at home and abroad
When not travelling, keep foreign usage and ATM withdrawals switched off. Store the card safely and avoid saving card details on unfamiliar websites. While abroad, use ATMs located within bank premises or trusted areas. Shield the keypad when entering your PIN. Avoid using public Wi-Fi for financial transactions. Monitor SMS and app alerts regularly. If the card is lost, block it immediately and inform the issuer.
If fraud has occurred
If funds have already been debited, block the card and file a written complaint with the bank. Submit the required dispute forms and documents promptly. If the issue is not resolved within the prescribed timeline, customers may approach the RBI’s Integrated Ombudsman Scheme. The bank will investigate the transaction in coordination with payment networks and merchants. If the claim is found valid, the amount is reversed as per regulatory timelines.
Forex cards remain a secure and efficient travel tool when used responsibly. Strong security systems and card controls are already in place. However, customer vigilance and timely reporting remain essential to staying protected.
(The author is Associate Analyst, Communications, BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
