The Debt Panel: 'Fraudsters stole $4,000 from my credit card'

The Dubai resident is seeking advice on how to get his money back and prevent it from happening again

Nick Donaldson / Getty

I am a victim of fraudulent transactions on my credit card worth Dh15,000 ($4,084). The transactions were made in the US and I did not authorise them.

I immediately reported the fraud to my bank. I tried disputing the transactions but the bank said that it can’t do anything about it.

I feel frustrated at the lack of support from the bank. These transactions were made by a third party without my consent or knowledge.

My bank wanted to know if I was asked for one-time password (OTP) and I said no. Therefore, technically, I didn’t authorise this transaction.

Some of my friends have faced similar problems and had their money reimbursed by the bank.

Will I be protected by insurance against these fraudulent transactions? Where can I read the fine print?

How can I guard against such fraudulent transactions in the future and should I deactivate my card? AJ, Dubai

Debt Panellist 1: Steve Cronin, founder of DeadSimpleSaving.com

Yes, you should immediately deactivate your card, so that no further fraudulent transactions can be made on it.

You should also prepare to cancel your card once the situation is remedied, as who would want to stay with a bank like this?

I assume the card doesn’t require an OTP up to the level of the largest fraudulent transaction you had. One feature of a credit card (unlike a debit card) is that the credit card should offer protection against fraudulent transactions.

If you had entered an OTP, the bank could blame you and refuse to pay out.

Similarly, they would be unlikely to pay if you told the bank that you mistakenly provided your credit card details to a suspicious website — such as those pretending you have a package for delivery and need to pay postage.

However, it seems you have made neither of these errors and you should have the payments voided.

The terms and conditions vary from card to card and, in cases like these, it is all about the details.

Check on your bank’s website, especially on the page offering the card, or search on Google. You can also call the bank and request a copy of the terms and conditions.

As the bank has been unhelpful and its behaviour has been worse than other banks, you need to play hardball here. Call them up and ask to speak to a manager. Go to your bank branch and also ask to speak to the branch manager. Be a pain.

Make sure you have all the details at your fingertips in a written statement: each amount, the time of the transaction, what you were doing at the time, the merchants and what time you reported the transactions.

Request that they issue a credit note for the total amount until any investigation is completed.

Do not pay the additional sum, otherwise it becomes your problem rather than the bank's problem.

It’s unlikely you have any insurance covering fraudulent payments that the bank refuses to remove. The bank and the card companies have plenty of insurance for exactly this situation.

Tell the managers that you will report them to the UAE Central Bank if they do not remedy the situation within 30 days of your initial complaint.

Also, tell them that you will notify your company’s HR department and get them to tell staff to avoid getting cards with this bank. After all, who wants to use a bank that won’t protect them?

In the last quarter of 2014, 83 per cent of UAE residents made purchases online. istockphoto.com

If the bank still does nothing, then raise a complaint with the Central Bank. This can be done through its website, by phone or you can visit a branch.

Another line of action is to contact the merchants that accepted the transactions. I know people who have successfully asked the merchant to cancel the transaction when their bank wasn’t helping. Merchants don’t want a bad reputation for promoting fraud.

It is very difficult to guard against fraudulent transactions like this.

Keep a low credit limit to avoid large transactions, although this could reduce your credit score if you regularly use more than 30 per cent of your limit, so it’s a balancing act.

Avoid giving your card details to websites that you are unfamiliar with. Always check the URL of the payment page.

Finally, don’t fall for emails, calls or messages asking you to make a payment online, especially if they are creating a sense of urgency.

Debt Panellist 2: Carol Glynn, founder of Conscious Finance Coaching

I'm sorry to hear that you have become a victim of fraudulent transactions on your credit card.

It's understandable that you feel frustrated by the lack of support from your bank, especially when you didn't authorise these transactions.

In general, credit card companies and banks have policies in place to protect their customers from fraudulent transactions. However, the specifics of these policies can vary depending on the bank and the type of card you have.

If a OTP was issued and used, you may also be required to raise a police complaint if you believe your personal data was stolen by someone

Carol Glynn,
founder of Conscious Finance Coaching

It is important to read the fine print of your credit card agreement to understand your rights and protections. You can request this from the bank if you don't have a copy at hand.

Many credit cards offer fraud protection or insurance to cover unauthorised charges, but you should confirm the details with your bank.

The bank will be able to see if an OTP was used to authorise the payment. If it wasn't, then it will be more straightforward to retrieve your money. If it was, then they will probably recommend you to raise a police complaint.

If you cannot resolve it satisfactorily with the bank and you believe you are due a refund, you can raise an official complaint with the bank through email. If you are still not satisfied, you can escalate the issue to the Central Bank after 30 days.

If an OTP was issued and used, you may also be required to raise a police complaint if you believe your personal data was stolen by someone.

Sometimes, this happens if a phone is cloned or someone has access to your emails.

To guard against future fraudulent transactions, you can take a few steps.

Firstly, monitor your credit card statements regularly and report any suspicious activity to your bank immediately. Secondly, be cautious when sharing your credit card information, particularly online or with unfamiliar vendors.

If you believe your card was compromised, then I would recommend blocking it and requesting the bank to issue a new card.

I hope this information is helpful and I wish you the best in resolving this issue with your bank.

The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to [e-mail]