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Beware of the New Credit Card Scam: How a Chandigarh Man Lost Rs 9 Lakh & How You Can Stay Safe

Beware of the New Credit Card Scam: How a Chandigarh Man Lost Rs 9 Lakh & How You Can Stay Safe

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The Rise of a New Credit Card Scam

By: Javid Amin
Cybercriminals are becoming more sophisticated, constantly evolving their tactics to deceive unsuspecting victims. A recent case in Chandigarh highlights how scammers are now using video calls, social engineering, and malicious links to execute large-scale financial fraud.

In December 2024, a Chandigarh resident, T Rajesh Kumar, lost nearly Rs 9 lakh while applying for a new credit card. What seemed like a routine bank promotional call turned into a devastating scam, leaving the victim in financial distress. This case serves as a crucial reminder for all internet users to stay vigilant against modern cyber threats.

In this detailed report, we will break down how this scam happened, the tactics used by fraudsters, and the cybersecurity measures you need to adopt to protect yourself from similar frauds.

How the Scam Unfolded: A Step-by-Step Breakdown

1. The Fake Bank Call

Rajesh Kumar, a resident of Sector 31, Chandigarh, received a call from someone posing as Ajay Tripathi, a representative from Punjab National Bank. The caller offered Rajesh a new credit card and inquired whether he was interested. Since banks frequently make promotional calls, the victim did not suspect anything unusual and agreed to proceed with the application process.

2. WhatsApp Communication and Video Call Verification

Once Rajesh showed interest, the fraudsters took the conversation to WhatsApp, stating they needed to share additional details via chat.

The scammer then initiated a WhatsApp video call under the pretext of conducting identity verification, a common security procedure used by many banks. Trusting the legitimacy of the caller, Rajesh complied and displayed his wife’s American Express and Axis Bank credit cards when asked.

3. The Fraudulent Link & Unauthorized Transactions

Following the video call, the scammer sent a link to Rajesh, instructing him to click on it to complete the application process. Unfortunately, as soon as he clicked on the link, unauthorized transactions started appearing on both his credit cards. Before he could react, six transactions totaling Rs 8,69,400 were made via Reliance Retail using his American Express card. Additionally, another Rs 60,000 was siphoned off from his Axis Bank card.

4. Secondary Attack: Hacking the Amazon Account

Shockingly, the scam did not end there. The next day, the fraudster called Rajesh again and informed him about additional transactions. In a further attempt to exploit him, the scammers even hacked his Amazon account. However, due to Amazon’s platform security measures, they were unable to cause further damage.

5. Reporting the Crime & Cyber Cell Investigation

Realizing he had been scammed, Rajesh immediately reported the incident to the Chandigarh Cyber Cell. Authorities have since launched an investigation into the matter, urging the public to remain cautious about such frauds.

What is This New Credit Card Scam?

Credit card fraud is not a new concept, but cybercriminals are constantly refining their tactics to appear more convincing. Here’s how this particular scam works:

1. Impersonation of Bank Officials

Scammers pose as representatives from legitimate banks and contact victims, offering attractive credit card deals.

2. Manipulative Video Verification

By using video calls, scammers create a false sense of legitimacy. They request victims to display their cards, claiming it’s part of a verification process.

3. Phishing Links & Malware Attacks

Fraudsters send fake links, tricking victims into clicking them. These links either:

  • Redirect users to phishing websites that steal personal information, or
  • Install malware on the victim’s device, allowing hackers to access sensitive data.

4. OTP Bypass Techniques

Many victims assume that without an OTP (One-Time Password), transactions cannot take place. However, cybercriminals use techniques such as SIM swapping, spyware, and malware to bypass OTP authentication and complete unauthorized transactions.

5. Secondary Account Breaches

Once scammers gain access to banking information, they attempt to hack into the victim’s Amazon, Flipkart, and other e-commerce accounts to make additional purchases.

How to Stay Safe from Credit Card Scams

As digital fraud increases, cybersecurity awareness becomes crucial. Here are some effective measures to safeguard yourself from similar scams:

1. Verify the Caller Before Sharing Any Information

  • Always cross-check with your bank’s official customer care number before proceeding with any request.
  • Banks never ask for sensitive information over calls or messages.

2. Never Share Your Credit Card Details

  • Do not reveal your card number, CVV, or expiry date to anyone over calls or video chats.
  • Banks do not require video verification for credit card applications.

3. Avoid Clicking on Unverified Links

  • Always verify links by checking the official bank website instead of clicking on links sent via SMS or WhatsApp.
  • Look for ‘https://’ in the URL before entering any personal information.

4. Enable Multi-Factor Authentication (MFA)

  • Use biometric authentication and app-based OTP verification for added security.

5. Keep Your Devices Secure

  • Install antivirus software and regularly update your device’s operating system.
  • Use strong, unique passwords for online banking and shopping accounts.

6. Monitor Your Bank Statements Regularly

  • Check your transaction history frequently to spot any unauthorized transactions early.

7. Report Suspicious Activities Immediately

  • If you suspect fraud, report it to your bank and local cybercrime authorities immediately.
  • In India, you can report online fraud at www.cybercrime.gov.in.

Bottom-Line: A Call for Vigilance & Awareness

As digital transactions continue to rise, so do cyber frauds. The case of Rajesh Kumar losing Rs 9 lakh serves as a critical reminder that scammers are employing highly sophisticated techniques, such as video verification and phishing links, to deceive even the most cautious individuals.

Staying informed, verifying calls, avoiding suspicious links, and securing personal information are crucial steps in preventing such frauds. By raising awareness and following strong cybersecurity practices, we can collectively protect ourselves and our financial assets from cybercriminals.