On 26 March, scores of Axis Bank credit cardholders reported unauthorised international transactions on their cards, despite having disabled international usage. Even those who had disabled the feature received multiple messages prompting them to activate it. The messages stated, "Transaction on Axis Bank Card no. XXXXX has been declined as international online usage is not enabled." Concerned customers took to social media to share their experiences and warn others.
Axis Bank customers are advised to immediately disable international usage on their credit cards and disregard any messages or email alerts urging them to enable it. They should refrain from reactivating the feature until the issue is resolved.
While there are concerns about a potential data breach at Axis Bank, the bank denies any such incident. Sanjeev Moghe, President and Head of Cards and Payments at Axis Bank, stated, "There has been no breach of Axis Bank's systems." He attributed the unauthorised transactions to a malicious attempt by certain unauthenticated merchants. The bank has identified and blocked these transactions, which primarily involve international e-commerce transactions that bypass the two-step authentication process.
Affected customers are encouraged to report any unauthorised transactions on their Axis Bank credit cards by contacting Axis Bank's credit card customer care at 1860 419 5555 or by visiting the nearest Axis Bank branch. Moghe assured customers that their cards are safe for use and that the bank is taking necessary measures to address the situation.
Axis Bank cardholders are required to complete a customer dispute form, providing details of the fraudulent transaction. Additionally, they must submit a signed "incident letter" addressed to Axis Bank, including account number, card number, and date of the fraudulent transaction. The incident letter should also outline card possession during the transaction and how it was detected, along with retaining screenshots of messages detailing the fraudulent transactions.
In cases where the total transaction amount is Rs 20,000 or more, a First Information Report (FIR) must be filed with the police, stating the credit card number and transaction details. However, if the fraud originates from an international transaction while the cardholder is in India, an FIR is not mandatory. Yet, if the cardholder is abroad when the fraudulent transaction occurs, an FIR or similar documentation from the local authorities of that country is necessary.
Furthermore, a copy of the passport must be submitted along with the complaint.