Credit Card Fraud Through False Employment Information – Legal Remedies and Consequences

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by

Adv Sudhir Rao
in

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Credit Card Fraud Through False Employment Information - Legal Remedies and Consequences

Mr.X, a student, was approached by a credit card salesperson from Y.Bank who offered attractive credit card benefits. During the application process, the salesperson instructed Mr.X to falsely represent himself as a manager at Z.Retail Company when the bank’s verification team called. Despite being unemployed, Mr.X followed these instructions and got his credit card approved based on fabricated employment details. Later, when Mr.X realized the legal implications of providing false information for credit approval, he sought legal counsel. The bank had processed his application based on fraudulent employment verification, creating potential criminal liability for both the applicant and the sales agent who facilitated this deception.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

  • Immediately stop using the fraudulently obtained credit card
  • Document all communications with the sales agent who advised false information
  • Consider voluntary disclosure to the bank before they discover the fraud
  • Preserve all evidence of the sales agent’s instructions to lie

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), several provisions apply to credit card fraud cases. Section 318 covers cheating and dishonestly inducing delivery of property. Section 336 deals with forgery for the purpose of cheating. Section 340 covers using forged documents as genuine. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 173 governs investigation procedures for such economic offenses. Additionally, provisions under the Banking Regulation Act and Information Technology Act may apply for electronic fraud cases.

If You Are the Complainant

  • File a complaint with the bank’s fraud department immediately
  • Lodge an FIR at the nearest police station with all supporting documents
  • Report the matter to RBI Banking Ombudsman for banking misconduct
  • Gather evidence of financial losses caused by the fraudulent application
  • Maintain detailed records of all fraudulent transactions and communications
Credit Card Fraud Through False Employment Information - Legal Remedies and Consequences

If You Are the Victim

  • Contact the bank immediately to report the fraudulent application process
  • Request cancellation of the credit card obtained through false means
  • Seek legal protection by cooperating with bank’s internal investigation
  • Document any pressure or coercion by sales agents to provide false information
  • Apply for police protection if threatened by involved parties

How the Police Behave in Such Cases

Police typically treat credit card fraud as a serious economic offense requiring detailed investigation. They examine bank records, verify employment claims, and interrogate all parties involved. Officers usually collaborate with bank security teams and may conduct raids on fraudulent sales networks. Investigation includes digital evidence collection, call record analysis, and verification of forged documents.

FAQs People Normally Have

Can I be arrested for lying on credit card application? Yes, providing false information constitutes fraud under BNS Section 318.

Is the sales agent also liable? Absolutely, instructing someone to provide false information makes them primary conspirators in fraud.

Can the bank take legal action? Banks routinely file criminal cases for fraudulent applications and can claim damages.

Will this affect my credit score? Yes, fraud cases severely impact credit ratings and future loan eligibility.

Credit Card Fraud Through False Employment Information - Legal Remedies and Consequences

What Evidence Is Required?

  • Credit card application forms with false employment details
  • Recorded conversations with sales agents instructing to lie
  • Bank verification call recordings
  • Employment verification documents or lack thereof
  • SMS or email communications from bank and sales team
  • Credit card statements and transaction records
  • Witness statements from others who experienced similar fraud

How Long Will the Investigation Take?

Credit card fraud investigations typically take 3-6 months for completion. Banks conduct internal investigations within 30-45 days. Police investigation may extend 6-12 months depending on the complexity and number of victims involved. Court proceedings can take 1-3 years for final resolution.

Advocate Sudhir Rao, Supreme Court of India

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