As part of an effort to address “skimming” fraud, HDFC Bank, India’s largest credit card issuer, is replacing some terminals at merchant establishments.
Skimming fraud involves the illegal copying of credit card information during a legitimate transaction to be used for a later unauthorized transaction, The Financial Express reports.
Parag Rao, the senior executive vice president of HDFC, said that he did not know whether there was any merchant complicity involving skimming fraud but added that a number of agencies were investigating the matter.
Rao said that the number of fraud cases reported in India amounts to just 10 percent of fraud cases reported in the developed world, adding that the recent instances of skimming fraud have not contributed to delinquencies among HDFC cardholders, according to The Financial Express.
HDFC Bank Managing Director Aditya Puri said that fraud is an industry phenomenon, adding that the bank has advised merchants and cardholders to be more vigilant.
The bank occupies one of the largest positions in the merchant acquisition industry, with nearly 250,000 machines and more than 6.4 million cards in circulation, The Financial Express reports.