What steps should you take if you encounter any unauthorised transaction in your current account?

01 AUGUST, 2023

Imagine this: You wake up to a notification from your bank which informs you that your account has been debited with Rs. 35,000. And the worst part? You never authorised this transaction. You check it again, hoping it was a mistake, but the amount remains. The fear that follows is a common experience for anyone, and most people's initial reaction is panic and confusion. However, that's not the solution.

Unauthorised transactions can happen to anyone at any time, whether due to fraud or a technical glitch. In such a situation, it's crucial to act quickly to minimise any further damage and secure your finances. So, what steps should you take if you encounter any unauthorised transaction in your Current Account?

Below are some valuable tips to help you tackle this uncertain and uncomfortable situation.

1. Block your ATM card

This will prevent any further misuse of your card since no further transactions can take place. This can be done contacting your bank’s customer support or by using Internet banking services. Before your card is blocked, transfer the remaining funds to another active Current Account.

You can open a new Current Account, if you don’t have another Current Account. Make sure to compare Current Accounts based on their features, interest rates (if you open an ActivMoney Current Account), and other benefits offered by the bank.

2. Contact your bank

After blocking your card, reach out to your bank's customer service immediately to report unauthorised transactions. You can also visit the nearest branch to report it in person. Provide your bank with all the necessary details. Remember, the faster you report the issue, the sooner the bank can investigate.

3. File a dispute

Your bank may ask you to file a dispute in writing, which should include your customer ID, account number, transaction date, transaction amount and the type of transaction.

File a fraud report at your nearest police station. Provide any supporting evidence you have, such as receipts, statements, screenshots, SMS or email notifications showing the debited amount, and Current Account documents such as statements (if asked). This will provide additional context to support your claim and to help your bank, and officials resolve the issue promptly.

4. Keep a record

Make sure to keep a record of all the interactions you have with your bank regarding the unauthorised transaction. This includes the date and time of the call or visit, the name of the customer service representative you spoke to, and any reference number or ticket ID provided.

5. Follow up on the matter

After lodging your complaint, you must stay active. Follow up with your bank regularly to ensure the complaint is progressing towards resolution. Following up can help you identify discrepancies and prevent further unauthorised transactions in your account.

It is advisable to ask your bank about any Current Account requirements you should be aware of, such as security features or limitations, to improve the safety of your account.

In a nutshell

Encountering unauthorised transactions in your Current Account can be a stressful experience. However, staying calm and taking swift action can help you protect your finances and minimise the damage. It is recommended to review your recent transactions, inform your bank immediately, and file a complaint with the concerned authorities.

As a preventive measure, choose a reputed bank to open a Current Account with and take additional steps to improve your account's security. Upon completing the Current Account opening process, you must enable two-factor authentication, monitor your account regularly, and be vigilant against phishing attempts.