A case of credit card fraud has once again exposed the vulnerabilities in India’s digital payment system. A man recently lost Rs 85,000 in unauthorized Flipkart purchases on his Axis Bank credit card—despite never sharing his OTP or card details.
The victim’s son took to Grapevine to express frustration, calling out a system that makes it easy for fraudsters but impossible for victims to get justice. “This isn’t isolated. It’s happening everywhere, to everyone, right now,” he wrote.
With tap-to-pay, digital wallets, and one-click checkouts, transactions have become seamless—but at what cost, he asked. “Every ‘innovation’ that removes friction for legitimate customers creates opportunities for fraud,” the victim’s son pointed out. Contactless payments allow transactions without PINs, express checkouts bypass authentication, and auto-saved card details increase exposure to fraud.
Yet, banks rarely question transactions, defaulting to approvals instead. “They’ve calculated that seamless payment profits outweigh fraud costs—costs they pass to customers.”
For victims, the process of disputing fraudulent charges is exhausting. “My father, who’s never shared his card details with anyone, who checks his statements regularly, who does everything ‘right,’ is now expected to prove he didn’t make the purchase, file police reports, submit endless documentation, wait 90 days, and still pay the bill in the meantime.”
Many victims give up, unable to spend weeks navigating complaint portals or banking ombudsman. “The system is designed to exhaust you into giving up. The banks know this,” he vented out.
The post questions why digital payment security hasn’t kept up with innovation. “Why do UPI, tap-to-pay, and digital wallets launch with fanfare while fraud protection remains stuck in the early 2000s?”
“What good is paying with your watch if your life savings can disappear in seconds? What’s the point of instant transfers if disputing fraudulent ones takes months?”
As digital transactions rise, banks and fintech companies must do more to protect users. Stricter authentication, real-time transaction monitoring, and faster dispute resolution are urgently needed.
“The system that moves money instantly somehow needs three months to verify you’ve been robbed. The system is f***ked and rigged,” he complained.
Replying to the post, many users shared tips on how to fraud-proof your online transactions. “I always set a transaction limit for all my cards (debit/credit), incase of a high value purchase, increase it for that moment and decrease it again as soon as it is done. Turn off international transactions, tap to pay, ATM withdrawal if not in use. ICICI mobile app has a good UI; so it’s relatively easy and convenient to do it,” a user shared.
Another user suggested: “Just don’t pay (the scammed amount), mark a mail to Axis (Bank) team and (RBI) ombudsman, lodge a complaint in cyber cell and relax. If there is no error at your end, then the bank has to reimburse the entire amount if reported within timelines and also not report it as defaulter if you have not paid.”