Summary of this article
Scammers trick cardholders with fake limit extensions.
OTP and CVV sharing leads to instant fraud.
RBI data shows rising digital payment fraud cases.
A total of 13,516 cases were reported across banks in India in 2025 related to credit card and Internet banking fraud, according to the Reserve Bank of India (RBI) Annual Report for FY 2024-25. These digital payment frauds accounted for the highest frequency of incidents (56.5 per cent of total fraud cases reported in the period. The total amount of losses specifically attributed to card and Internet banking fraud in the year was reported as Rs 520 crore, the report said.
Fraud related to credit cards and digital payments remain an important issue for end users. Even though the average loss per case may be smaller than large-scale loan frauds, the high numbers indicate that credit cardholders are repeatedly targeted by scammers.
How The Fake Limit Extension Scam Works
The scam usually starts with an unsolicited call, message, or online chat from the bank or credit card issuer. The scammer offers a “special limit extension” or a “promotional upgrade”, sometimes with other benefits, such as waved annual fees or an increased credit limit for festive offers. These messages normally poses urgency, saying it will last only for a few hours in order to bait the unsuspecting cardholder.
To seem credible, the fraudster typically quote partial information, such as the last four digits of the card number or details of a recent transaction. In most cases, this information can easily be obtained from SMS alerts or billing statements. Once the victim is reassured, the scammer asks for a small “processing fee” and requests sensitive card information, including the three‑digit CVV.
Next, the scammer informs the victim that an OTP has been sent to the registered mobile number for confirmation of the upgrade. They then asks the cardholder to read out the OTP or key it in from a prompt provided by them. Once the OTP and the CVV are shared, the scammer uses the same to authorise online transactions or fund transfers. These transactions are almost instantaneous, and before the cardholder checks the alerts or finds any anomaly, his card has already been compromised or the funds have been swiped off from his account.
Why This Scam Continues To Succeed
There are several reasons why scammers often use this scam to defraud people. First, the scammer correctly states partial card information of the victim, thus creating a deceptive sense of trust and legitimacy. Second, the promise of a higher limit or a fee waiver tempts the cardholder. Third, scammers mostly use time-sensitive languages like “limited time offer” to push cardholders into acting fast and, often, without the verification of details.
Even though per-case losses may be modest, high incident numbers translate to a substantial impact on many consumers. For example, in FY23-24, approximately Rs 177.05 crore was lost from all over the country especially due to ATM/credit card scams, according to the report.
How Cardholders Can Protect Themselves
Cardholders should treat any unsolicited communication that promises a credit card upgrade or a limit enhancement with utmost caution. No genuine bank will either call or message its customers seeking to know their CVV, OTP, or PIN for a limit enhancement or upgrade.
Cardholders can verify an offer by logging into their bank’s official mobile application or Netbanking portal, or by calling the customer-service number on the back of their card. They should also avoid calling on any phone number or link in any suspicious looking message.
Card holders should never disclose the details of the CVV, OTP, PIN, or full card number through phone or message. In case these details have been shared, the card needs to be blocked immediately, banking passwords changed, and the incident reported to the bank as fraud. Keeping logs of calls, SMS alerts, and transaction statements also helps during investigation.
