India’s rapid digital adoption and surge in outbound travel have created a parallel rise in financial vulnerabilities. As more travellers rely on digital payment tools such as forex and international cards, fraudsters are increasingly targeting cross-border transactions, making robust card fraud detection mechanisms more critical than ever.
The scale of the problem is significant. According to government data, cybersecurity incidents in India surged from 10.29 lakh in 2022 to 22.68 lakh in 2024, reflecting the growing sophistication of digital frauds. At the same time, financial fraud is becoming more expensive. The Reserve Bank of India reported ₹21,515 crore worth of banking frauds in just the first half of FY25-26, a 30% year-on-year increase.
For international travellers, this risk multiplies. Transactions across borders, unfamiliar payment systems, and increased reliance on cards make them prime targets for fraud. This makes it essential to understand not just the benefits of a forex card, but also how to use it securely.
The rising threat of forex and card-based frauds
Recent incidents underscore just how pervasive and dynamic these risks have grown. Cases of unauthorised transactions on forex cards, ATM card swapping, and phishing-based credit card fraud are being reported in India. In one instance, a forex card data breach impacted over 5,000 users, resulting in losses of ₹2.5 crore, while another case flagged $280,000 in unauthorised forex card transactions.
Even seemingly simple scenarios, such as withdrawing cash from a bank machine, aren’t free of risk, as card-swapping scams still prey on unwitting customers. These examples highlight an important change: fraud is no longer confined to online transactions; it is omnichannel, impacting both digital and physical card usage.
The new face of travel fraud in 2026
Fraudsters have traded basic pickpocketing for advanced technology. Travellers today face threats that are often invisible until the statement arrives.
AI-powered “smishing” and phishing
Criminals now use Large Language Models (LLMs) to create hyper-realistic, localised scam messages. You might receive a text in perfect English claiming your forex card has been blocked due to a suspicious transaction in your current city. These messages contain “verification links” that lead to cloned banking portals designed to harvest your credentials.
From “skimming” to “shimming”
While most travellers know to check for bulky “skimmers” on ATMs, 2026 has seen the rise of “shimmers.” These are paper-thin devices inserted directly into the card slot to read data from the metallic chip of your international card.
Public Wi-Fi and Man-in-the-Middle (MitM) attacks
Logging into your banking app at a local cafe might seem harmless, but hackers use “packet sniffing” on unsecured networks to intercept your login data in real-time.
Data breaches
Large-scale data breaches at travel platforms or payment processors can expose sensitive forex card details, even if the physical card is safe. Stolen credentials remain a top threat, allowing hackers to perform unauthorised transactions on an international card by exploiting leaked login data and card profiles.
How travellers can protect their forex card?
With growing instances of card fraud, travellers must take proactive steps to secure their forex card while abroad. The steps include:
Enable real-time alerts
Opting for instant SMS or app notifications will allow you to see every transaction in real time. This enables travellers to spot suspicious behaviour in seconds, rather than spending hours or even days. Instant alerts also allow you to track spending habits and detect anomalies in real-time.
Avoid public Wi-Fi for financial transactions
Wi-Fi connections at public locations such as airports, hotels, or cafes are unsecured and subject to cyberattacks. Through such networks, hackers can access sensitive data such as card information, login credentials, or OTPs. Always use your secure private connection or a trusted VPN when accessing your forex cards app or making payments. This greatly reduces the risk of data compromise.
Decline Dynamic Currency Conversion (DCC)
When you are making payments abroad, merchants may offer to charge you in Indian Rupees (INR) instead of the local currency. Although this might seem convenient, in many cases it is associated with high exchange rates and hidden markups. Always select to pay in the local currency, not INR, to get better exchange rates and avoid excessive charges.
Regularly monitor transactions
During travel, make it a point to check your transaction history every day. Even small, unknown charges should not be ignored or dismissed, as fraudsters often use low-value transactions to test whether a card is active.
Use app-based card controls
Modern forex card platforms offer advanced security features through mobile apps. These include the ability to instantly lock, unlock, or block your card, set transaction limits, and enable or disable international usage. Such controls give travellers real-time authority over their card, allowing them to respond immediately to any suspicious activity.
Be cautious at ATMs and POS machines
Physical card fraud, such as skimming or card swapping, is still prevalent in many parts of the world. Always inspect ATMs and POS machines for unusual attachments or tampering. Avoid accepting help from strangers during transactions, and shield your PIN while entering it. Using ATMs located inside banks or secure areas further reduces risk.
Conclusion
The rise in forex card fraud highlights a critical reality: as financial tools become more advanced, so do the risks associated with them. However, the solution is not to avoid digital payments, but to use them more intelligently.
By combining awareness with proactive security practices, travellers can significantly reduce their exposure to fraud. Choosing the right card also plays a crucial role. Modern solutions like Niyo zero forex markup cards not only minimise unnecessary costs but also come equipped with advanced security features and real-time controls, making them among the safest options for international travellers today.
In an increasingly connected world, safeguarding your money is just as important as planning your journey, and with the right tools and habits, you can travel smarter and more securely.
