Udupi Man Files Police Complaint After Rs 2 Lakh Fraudulently Withdrawn from Unused Credit Card
A shocking case of financial fraud has emerged from Udupi, where a man discovered that Rs 2 lakh was fraudulently withdrawn from a credit card that he never activated or used. The incident has raised serious questions about banking security protocols and the vulnerability of digital financial transactions.
Details of the Credit Card Fraud Case
The complainant, identified as Satish, a 41-year-old resident, held a savings account with a major Indian private sector bank. According to his police complaint, he received a credit card issued in his name via courier on November 10, 2025, around 3:08 pm. Satish explicitly stated that he did not use the credit card at any point and kept it unused without even generating the PIN, assuming it would remain inactive.
However, on December 20, when Satish visited the bank for routine work and checked his mobile banking app, he noticed alarming discrepancies in his account. He immediately alerted the bank staff, who informed him that a credit card with a limit of Rs 2 lakh had been issued in his name and that the entire credit limit had been fully utilized.
How the Fraud Was Executed
Upon further investigation of the credit card statement, it was revealed that on the very day the card was delivered, an amount of Rs 2 lakh was credited to Sectormark IT Solution, Thane Departmental Store. Satish emphasized that he neither used the credit card nor generated its PIN, making the transaction highly suspicious.
The police complaint alleges that unknown accused persons fraudulently obtained the One-Time Password (OTP) online, without Satish's knowledge, and misused the credit card to withdraw the substantial sum. This method highlights potential loopholes in digital authentication processes, even for cards that are not activated by the legitimate holder.
Legal Action and Police Response
Based on Satish's detailed complaint, a formal case has been registered at the Udupi Town police station. The authorities have invoked Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) for cheating, along with Section 66(D) of the Information Technology Act, which pertains to punishment for cheating by personation using computer resources.
This legal action underscores the seriousness of the fraud and the need for stringent measures to combat such cyber-financial crimes. The case serves as a stark reminder for bank customers to vigilantly monitor their accounts, even for services they do not actively use.
Broader Implications for Banking Security
The incident in Udupi has sparked concerns about:
- The security of credit card issuance and activation processes.
- The effectiveness of OTP-based authentication in preventing unauthorized transactions.
- The responsibility of banks in safeguarding customers against such frauds, especially when cards are not activated by the account holders.
Financial experts advise customers to:
- Regularly check bank statements and mobile banking apps for any unauthorized activity.
- Immediately report any discrepancies to their bank and local police.
- Consider activating security features like transaction alerts and spending limits on all financial instruments.
As the investigation proceeds, this case highlights the evolving challenges in digital banking security and the critical need for enhanced protective measures to prevent similar frauds in the future.
