Does credit cards have any fraud insurance? Does it work on loans from the credit card?

[src223]

This is a story of a fraud, details are a bit murky at this point. I don't know if this is the right place to post it, but I don't know anywhere else to post.

So a friend of mine was offered an Axis Bank credit card. He received it but didn't activate it. Few days later, an "executive" from the bank calls up, and offers to activate the card on his behalf. He provides all the correct information like credit card number, bank branch etc, basically to prove that he is indeed from Axis Bank.

Then he asks for an OTP.

My friend being convinced that he was speaking to a real executive, provided the OTP on call.

What follows afterwards is pretty predictable, one would think a major use of the card, but no. They open a massive loan account. And within minutes empty the loan.

My friend was talking to the bank's manager while the carnage was going on. The bank's manager apparently said that he was closing the account, but he didn't, so now my friend has a massive loan.

He went to the bank branch. They accepted that the details were "leaked" by someone from the bank itself. But they have made it absolutely clear that my friend will have to pay the loan as it's on his name.

What is the best course of action now? I thought credit cards by default have some fraud insurance. But I am not sure. Any help is appreciated.

 

[Faust]

Something similar happened to me.
I was busy with some work when they called pretending to be my insurance policy provider.
By the time I realized something was wrong, I had given away some information.

Interestingly, I received a mail from the policy provider about a ticket raised.

I don't know what their endgame was but I dug deeper during their follow up calls and they started behaving aggressively threatening to cancel my policy.

They have probably sold this information and I receive a call periodically from other people and I ask them to call back from a landline.
Once I told them that I lost my job and I want to enter the same business and asked them to teach me.

I think if you receive a call from a mobile no., it is cause enough to be on guard.