Credit Card Limit Increase Scam: Vadodara Trader Loses ₹18.87 Lakh

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A Vadodara-based timber merchant reported a financial loss of ₹18.87 lakh after falling victim to a phishing scheme involving a fraudulent credit card limit increase offer.

The Incident Unfolds

The incident unfolded when an individual posing as an Axis Bank representative contacted the 37-year-old trader on July 31, proposing to raise his credit card limit to ₹2 lakh. The scam began with a deceptive link promising ₹4,500 in cashback, which the victim accessed and used to input banking details. The fraudster later requested debit card information and One-Time Passwords (OTPs) under the guise of verifying the credit limit adjustment. This enabled unauthorized access to the victim’s accounts, leading to a series of transactions between August 1 and August 6 that drained ₹18,87,513. The scheme extended to the victim’s fixed deposits, which were liquidated without consent, with funds transferred to multiple bank accounts.

The Scam Process

The trader first noticed discrepancies on August 3 after detecting an unfamiliar ₹3 lakh transaction. Upon further review, he identified the full extent of the losses and immediately contacted his bank to freeze accounts and block the debit card. He also reached out to the national cybercrime helpline, 1930, on August 7, providing details of the fraudulent phone numbers, links, and bank accounts involved.

RBI and Axis Bank Warnings

The Reserve Bank of India (RBI) has previously highlighted similar tactics, where cybercriminals impersonate financial institutions to extract sensitive data. The regulator emphasizes that legitimate banking institutions will never request OTPs, PINs, or card details over unsolicited calls. Customers are advised to verify any credit limit or loan offers through official bank channels rather than clicking on links or sharing credentials. Axis Bank’s customer protection guidelines reinforce this advice, warning against disclosing account details, card numbers, or CVVs to unknown parties. The bank also recommends reporting unauthorized transactions promptly and blocking affected accounts.

Broader Pattern of Scams

This case aligns with a broader pattern of scams where fraudsters build trust through seemingly legitimate offers before extracting sensitive information. Authorities in Vadodara are investigating the flow of stolen funds and the identities behind the impersonation. The incident underscores the importance of vigilance against unsolicited communications. Financial institutions will not ask for OTPs or PINs to process credit limit increases. Users are urged to verify such requests through official apps, websites, or customer service lines rather than engaging with unverified links or phone numbers.

Separate Cyber Fraud Case

A separate cyber fraud case in Vadodara on August 31 involved another businessman and his mother losing ₹1.53 crore after individuals impersonated bank and police officials. Investigators are analyzing transaction trails to trace the movement of illicit funds in the ₹18.87 lakh case.

Key Takeaways for Individuals

For individuals, the key takeaway is to treat unsolicited offers of credit limit increases or cashback as potential threats. Any request for OTPs, PINs, or card details should be immediately rejected, and the bank should be contacted directly for verification.