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Recently, cases of theft of funds from the card as a result of various fraudulent actions, its loss, credulity and carelessness of the owner have become much more frequent. This is due to the prevalence of non-cash payment instruments, and the development of technologies (including fraudulent ones), and the imperfection of domestic legislation. According to statistics, at least one per day becomes a victim of malefactors. What to do if money is stolen from your card? Can the stolen funds be returned? We will talk about this in this article.
Who will the bank return the money to?
Let's make a reservation right away that there is a certain mechanism of action when fraudulent transactions are detected. A person who has become a victim of intruders must strictly adhere to these rules. Otherwise, according to the law, the bank may refuse to fulfill its obligations. So, you can return the missing money if two conditions are met simultaneously:
It will not be superfluous to contact the police for fraud and / or theft. Although this requirement is not reflected in the law, in practice this is the case: many banks try to avoid payments, return funds to the client, if there is no constant pressure from law enforcement agencies and the press.
Also, when money disappears from the card, you should be prepared for the fact that you will have to prove that you did not violate the security rules and did not transfer the PIN code and card to unauthorized persons.
But not only the client has obligations to the bank. According to the law, the bank is obliged to notify the cardholder of all operations on it. The method of notification is prescribed in the contract for the provision of services, so it will not be superfluous to clarify it. These are usually SMS messages or emails. If the money was debited as a result of fraudulent actions, and the bank did not report the transaction, then you have the right to demand a full refund of the debited amount.
How are funds stolen?
The list of fraudulent ways to steal money is not that long. Therefore, plastic owners should be aware of how funds are usually stolen. One of the most common is psychological fraud. Attackers rub into the trust of a person, posing as employees of a bank or other organizations, and extract confidential information necessary to complete a transaction: a PIN code, a one-time code for an operation, passport data. In this case, there is no need even to use any special technical means.
The second popular method is to copy data from the magnetic stripe of the card. For this, special compact devices are used - skimmers. They are used when the owner of the plastic transfers it to a third party, such as a waiter in a restaurant. Also, the devices can be a whole complex of a card holder and a keyboard overlay or a miniature camera, which are installed on ATMs and terminals. Fraudsters make skimmers as similar as possible to ATM parts and attach them to double-sided tape.
The contactless payment fraud is also worth mentioning. From a card equipped with an RFID chip, funds can be debited automatically as soon as it is within the coverage area of the POS terminal. Data is exchanged between devices, funds are debited from the account. If the transaction amount is less than RUB 1,000, no confirmation of the transaction is required. This is the basis of the fraud, when an attacker uses high-power terminals capable of contacting RFID tags at a distance of several tens of centimeters.
Legislative aspects
Not everyone and not always succeed in recovering the funds stolen from the card. This is due to the fact that under the law it is not considered an unauthorized transaction in which payment details were used and the correct PIN code was entered. For the bank's system, such an operation looks quite legal, no matter what the owner of the plastic says.
If you have lost your card, it was stolen from you, immediately block it, otherwise the bank will regard all operations as legitimate. The same applies to card cloning fraud. Therefore, if you have the slightest suspicion that the ATM may be equipped with spy equipment, do not use it. Otherwise, it will be almost impossible to prove your case, and the stolen funds can only be reclaimed from the fraudsters themselves.
What to do if money is stolen from the card?
In the event of fraud, it is necessary to act quickly and strictly in accordance with the law. The bank cannot cancel unauthorized card transactions after they have been completed. But the sooner you respond to fraud and take appropriate action, the higher the likelihood that the money will be returned.
The order is as follows:
Of course, banks do not want to lose money, and therefore cases of fraudulent debiting of funds from the card are not always resolved in favor of the client. But large organizations value their reputation, especially when it comes to privileged holders. So in each case, the outcome of the appeal may be different.
Why can the bank refuse to satisfy the client's requirements?
This happens most often for one reason - the client has violated the recommended rules for the safe use of the card: he handed it over to the wrong hands, told someone the PIN code, did not notify the bank about the loss of the card, etc. Banks most often try to prove the guilt of the victim himself. Therefore, it is recommended to strictly follow the rules of use and be ready to go to court and provide evidence of your innocence.
The second common reason for refusal is a violation of the terms of circulation on the fact of loss of money. Let us remind you that it is no more than 24 hours from the moment of the unauthorized transaction.
One more moment should be considered in detail when a bank card holder becomes a victim of telephone scammers who introduced themselves as bank employees. The agreement and the rules for using the card stipulate that confidential data (PIN code, login and password for entering online banking, one-time codes for transactions) cannot be transferred even to bank employees. If the funds were lost due to the fact that the client himself provided all the information, being deceived, the bank does not bear any responsibility for this. According to the law, it is possible to demand refund of the stolen funds only from the fraudsters themselves after their capture.
How to prevent fraudsters from stealing money from bank cards?
Of course, all the above actions in case of theft of funds from the card are mandatory and, as practice shows, they are quite effective, but one should not count on the bank's one hundred percent leniency. It is recommended that you exercise care and caution yourself in order to prevent the loss of funds. In half of cases of card fraud, the main fault lies with the owner of the plastic.
Safety regulations:
Remember that no security tool can provide an absolute guarantee of security. If there are large funds on the card, it is better to insure additionally. Today, many banks offer a bank card insurance service, which provides for a refund within the insurance limit (set at the conclusion of the agreement) if the money was stolen due to loss, theft, robbery, etc. Having insurance, it is quite easy to compensate for the stolen funds in full or at least partially. However, banks set limits on the number of compensation payments, of which there should not be more than three for the insurance period. So caution in this case will not be superfluous.
Another reliable way to protect cashless payment instruments is special shielded wallets, wallets and holders. These devices are primarily relevant for contactless cards, from which you can write off money using powerful POS terminals or steal data using grabbers. Inside the secure wallets, there is a shielding material that works like a Michael Faraday cage, which shields radio signals and prevents them from interacting with the RFID module.
Such protective accessories are available on the Optex website. We offer options for women, men, youth, tourists, stylish gifts. Our products are not only stylish, beautiful and relevant, but also guaranteed to protect data integrity.
Who will the bank return the money to?
Let's make a reservation right away that there is a certain mechanism of action when fraudulent transactions are detected. A person who has become a victim of intruders must strictly adhere to these rules. Otherwise, according to the law, the bank may refuse to fulfill its obligations. So, you can return the missing money if two conditions are met simultaneously:
- The holder strictly followed the rules for using the card and did not violate the recommended safety requirements: he did not transfer plastic to third parties, did not disclose the PIN code to anyone.
- The client notified the bank about the unauthorized operation (operations) no later than within 24 hours after their completion. This can be done by calling the bank's hotline, as well as directly contacting the branch where the card was issued.
It will not be superfluous to contact the police for fraud and / or theft. Although this requirement is not reflected in the law, in practice this is the case: many banks try to avoid payments, return funds to the client, if there is no constant pressure from law enforcement agencies and the press.
Also, when money disappears from the card, you should be prepared for the fact that you will have to prove that you did not violate the security rules and did not transfer the PIN code and card to unauthorized persons.
But not only the client has obligations to the bank. According to the law, the bank is obliged to notify the cardholder of all operations on it. The method of notification is prescribed in the contract for the provision of services, so it will not be superfluous to clarify it. These are usually SMS messages or emails. If the money was debited as a result of fraudulent actions, and the bank did not report the transaction, then you have the right to demand a full refund of the debited amount.
How are funds stolen?
The list of fraudulent ways to steal money is not that long. Therefore, plastic owners should be aware of how funds are usually stolen. One of the most common is psychological fraud. Attackers rub into the trust of a person, posing as employees of a bank or other organizations, and extract confidential information necessary to complete a transaction: a PIN code, a one-time code for an operation, passport data. In this case, there is no need even to use any special technical means.
The second popular method is to copy data from the magnetic stripe of the card. For this, special compact devices are used - skimmers. They are used when the owner of the plastic transfers it to a third party, such as a waiter in a restaurant. Also, the devices can be a whole complex of a card holder and a keyboard overlay or a miniature camera, which are installed on ATMs and terminals. Fraudsters make skimmers as similar as possible to ATM parts and attach them to double-sided tape.
The contactless payment fraud is also worth mentioning. From a card equipped with an RFID chip, funds can be debited automatically as soon as it is within the coverage area of the POS terminal. Data is exchanged between devices, funds are debited from the account. If the transaction amount is less than RUB 1,000, no confirmation of the transaction is required. This is the basis of the fraud, when an attacker uses high-power terminals capable of contacting RFID tags at a distance of several tens of centimeters.
Legislative aspects
Not everyone and not always succeed in recovering the funds stolen from the card. This is due to the fact that under the law it is not considered an unauthorized transaction in which payment details were used and the correct PIN code was entered. For the bank's system, such an operation looks quite legal, no matter what the owner of the plastic says.
If you have lost your card, it was stolen from you, immediately block it, otherwise the bank will regard all operations as legitimate. The same applies to card cloning fraud. Therefore, if you have the slightest suspicion that the ATM may be equipped with spy equipment, do not use it. Otherwise, it will be almost impossible to prove your case, and the stolen funds can only be reclaimed from the fraudsters themselves.
What to do if money is stolen from the card?
In the event of fraud, it is necessary to act quickly and strictly in accordance with the law. The bank cannot cancel unauthorized card transactions after they have been completed. But the sooner you respond to fraud and take appropriate action, the higher the likelihood that the money will be returned.
The order is as follows:
- Call the hotline (support service) of the banking organization and report unauthorized transactions. It is also recommended to immediately block the card so that attackers cannot repeat the payment, transfer or cash withdrawal.
- Contact the branch of the bank where the card was issued, write a claim to protest an unauthorized transaction. Some banking organizations accept applications by phone or online. But it’s better to make a personal visit. The claim form for each bank may be different (an employee of the organization will help you with this). The claim should be written in two copies (or made a copy) so that the bank employee who received the application from you certifies your copy, as it may be useful in court. We remind you that you must write a claim no later than 24 hours after the fraudulent transaction.
- Change passwords in online banking, on your phone, in email and social networks. Since today most applications are tied to mail and / or phone, attackers can gain access to your personal data by taking over the password of your mail or account on VK, Facebook, Twitter. Therefore, it is better to play it safe.
- Contact law enforcement. The absence of a statement to the police, if you decide to limit yourself only to contacting the bank, may be interpreted by the court not in your favor. Tell the police as much as possible about the circumstances of the incident. Provide proof as soon as possible that the fraud was not due to your carelessness.
- Await the results of the investigation and the bank's decision. According to the law, applications from citizens must be considered by a banking organization within 30 days. The law does not provide for a refund period. If there is indisputable evidence of the bank's guilt, the money can be returned in a few days. Sometimes clients have to wait for justice and much longer: for several months or even years. That is why it is recommended to contact not only the bank, but also the police, so that the work is carried out simultaneously in several areas.
Of course, banks do not want to lose money, and therefore cases of fraudulent debiting of funds from the card are not always resolved in favor of the client. But large organizations value their reputation, especially when it comes to privileged holders. So in each case, the outcome of the appeal may be different.
Why can the bank refuse to satisfy the client's requirements?
This happens most often for one reason - the client has violated the recommended rules for the safe use of the card: he handed it over to the wrong hands, told someone the PIN code, did not notify the bank about the loss of the card, etc. Banks most often try to prove the guilt of the victim himself. Therefore, it is recommended to strictly follow the rules of use and be ready to go to court and provide evidence of your innocence.
The second common reason for refusal is a violation of the terms of circulation on the fact of loss of money. Let us remind you that it is no more than 24 hours from the moment of the unauthorized transaction.
One more moment should be considered in detail when a bank card holder becomes a victim of telephone scammers who introduced themselves as bank employees. The agreement and the rules for using the card stipulate that confidential data (PIN code, login and password for entering online banking, one-time codes for transactions) cannot be transferred even to bank employees. If the funds were lost due to the fact that the client himself provided all the information, being deceived, the bank does not bear any responsibility for this. According to the law, it is possible to demand refund of the stolen funds only from the fraudsters themselves after their capture.
How to prevent fraudsters from stealing money from bank cards?
Of course, all the above actions in case of theft of funds from the card are mandatory and, as practice shows, they are quite effective, but one should not count on the bank's one hundred percent leniency. It is recommended that you exercise care and caution yourself in order to prevent the loss of funds. In half of cases of card fraud, the main fault lies with the owner of the plastic.
Safety regulations:
- Do not tell anyone the PIN-code of the card, login and password for entering Internet banking, as well as personal data of e-mail and pages on social networks. Remember that even bank employees never ask customers for passwords and PIN codes.
- Do not write down PIN codes in your phone or on paper, do not store them in your wallet along with cards, because if you lose your bag, you will not only lose your plastic, but also provide all the codes from it to the finder.
- Do not give cards to third parties (sellers, waiters and other service personnel in establishments).
- Use antivirus and firewall on your computer, smartphone and other gadgets from which you can use Internet banking. Apply strong encryption mechanisms and protection methods that an attacker cannot take advantage of. For example, use your fingerprint or Face ID authentication instead of your regular PIN or pattern.
- When using the card in a store or when withdrawing money from it at an ATM, enter the PIN code in such a way that it cannot be seen by strangers.
- Pay attention to the terminals and ATMs you use. Today, the method of fraud by cloning bank cards is becoming more and more common. Readout equipment (unobtrusive keyboards, readers and cameras) is installed on ATMs.
- Do not make purchases in suspicious online stores, do not enter payment details on sites that you cannot completely trust. To make online purchases, it is recommended to use virtual cards that can be replenished for the amount of one payment.
- Set limits for non-cash transactions, payments and withdrawals.
- Connect SMS-informing about all card transactions in order not to miss unauthorized transactions.
- Try to minimize card transactions using alternative payment systems, for example, via a smartphone. Due to their characteristics, they are better protected from fraud, especially if the gadget has a fingerprint sensor.
Remember that no security tool can provide an absolute guarantee of security. If there are large funds on the card, it is better to insure additionally. Today, many banks offer a bank card insurance service, which provides for a refund within the insurance limit (set at the conclusion of the agreement) if the money was stolen due to loss, theft, robbery, etc. Having insurance, it is quite easy to compensate for the stolen funds in full or at least partially. However, banks set limits on the number of compensation payments, of which there should not be more than three for the insurance period. So caution in this case will not be superfluous.
Another reliable way to protect cashless payment instruments is special shielded wallets, wallets and holders. These devices are primarily relevant for contactless cards, from which you can write off money using powerful POS terminals or steal data using grabbers. Inside the secure wallets, there is a shielding material that works like a Michael Faraday cage, which shields radio signals and prevents them from interacting with the RFID module.
Such protective accessories are available on the Optex website. We offer options for women, men, youth, tourists, stylish gifts. Our products are not only stylish, beautiful and relevant, but also guaranteed to protect data integrity.
