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The Biggest Loophole of 2024 Turned into a Nightmare for One

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TechnoFino said:
Hey TFCians,

As I promised yesterday, here’s a fascinating yet cautionary story about loophole exploitation. Let’s dive in:

​

The Story​

Mr. X, a credit card enthusiast, owned several high-end credit cards, which he primarily used for his business. Due to his business expenses, his credit card bills consistently exceeded ₹5 lakhs on nearly all his cards each month. Like many of us, he used his debit cards to pay credit card bills to earn some additional rewards.

In September 2024, Mr. X’s credit card bills across nine different bank cards totaled over ₹5 lakh each.
One day, Mr. X attempted to pay his “CCB Bank” (actual name undisclosed) credit card bill via “LTB Bill Pay” (platform name also withheld) using his IDFC FIRST Bank debit card. However, the transaction failed. Undeterred, he tried again. And again. Over 10 times. Still, all his attempts failed.

After a bit of investigation, he realized the transactions were failing because he was attempting to pay over ₹3 lakh each time, but his account balance was only ₹2.8 lakh. So, naturally, they couldn’t process.

But about 20 minutes later, to his shock, he began receiving SMS notifications from CCB Bank, confirming that his payments had been credited to his credit card account. Alarmed, he opened his banking app to find ₹18 lakh credited to his credit card! He quickly checked his other credit cards, where he had also attempted to pay bills—and astonishingly, all the failed transactions had been credited too.

By the end of the day, Mr. X had successfully "paid" ₹30 lakh in credit card bills across multiple accounts without actually spending any money. Intrigued, he decided to test this glitch further, eventually using the same method to "pay" a total of ₹65 lakh.

Though Mr. X was initially thrilled, he was also worried. Would the bank reverse the payments? Would they impose hefty interest and late payment fees? Cautious of the possible consequences, he refrained from exploiting the glitch further.

Later, he shared his experience with a few close friends, including me. I strongly advised him to clear his actual due amounts to avoid interest or fees in case the payments were reversed.

Enter Mr. Y​

One of Mr. X’s friends, Mr. Y, decided to give this trick a try in the first week of November. Since credit card bills can’t be paid if there’s no outstanding balance, he used his cards in October, waited for the bills to generate, and then attempted the same method.

Lo and behold, Mr. Y managed to “pay” over ₹60 lakhs across his credit cards without spending a single rupee.

But just two days ago, disaster struck. All the payments Mr. Y made were reversed, and the bank imposed substantial interest and associated charges on his accounts. Now, Mr. Y is desperately trying to get the charges reversed, but he hasn’t received any response from the bank yet.

Here are two screenshots

View attachment 75998

View attachment 75997

Enter Mr. Z​

Another friend, Mr. Z, approached the glitch differently. Rather than paying credit card bills, he used it to cover other expenses like insurance premiums, Fastag recharges, mobile recharges, and more.

Using multiple banks’ debit cards, Mr. Z managed to:
  • Recharge his family’s mobile phones with annual plans for the next 15 years.
  • Top up his Fastag accounts and purchase fuel worth ₹3 lakh.
  • Pay broadband bills and other utilities.
Unlike Mr. Y, none of Mr. Z’s payments have been reversed so far.

The Aftermath​

  • Mr. X: Payments are still not reversed, but it’s likely only a matter of time. Fortunately, he cleared his actual credit card dues, so he may avoid penalties.
  • Mr. Y: Facing a financial nightmare. His CIBIL score will likely plummet, and he’s burdened with massive interest and fees.
  • Mr. Z: The smartest of the bunch. His payments haven’t been reversed, and he seems to have dodged the bullet.

​

The Takeaway​

Exploiting loopholes might seem like an easy way to gain an edge, but it’s a risky game. Even when a loophole isn’t technically illegal, it can still have severe consequences if discovered and reversed.

Before attempting such exploits, always consider the potential fallout and worst-case scenarios. While I won't lecture you about ethics, it's up to you whether you want to take advantage of loopholes or not. I recommend you to think carefully before diving into them.

Note: I have not disclosed the actual amount here, as the affected individuals have asked me not to share the specific figures. The actual amount may be higher or lower than what I have disclosed.

Cheers! 🥂

Update (5th June, 2025):
  • Mr. X is still in profit - several of his payments (worth lakhs) have not yet been reversed by the bank.
  • Mr. Y still fighting to get the penalties reversed. However, after multiple requests, the bank did ensure there was no CIBIL impact.
  • Mr. Z, the ultimate gamer, is sitting on a huge profit. None of his transactions have been touched by the bank till date.
Click to expand...
Bhai ye batao aapne kitna profit udaya?!!!!
 
TechnoFino said:
Update:
  • Mr. X is still in profit - several of his payments (worth lakhs) have not yet been reversed by the bank.
  • Mr. Y still fighting to get the penalties reversed. However, after multiple requests, the bank did ensure there was no CIBIL impact.
  • Mr. Z, the ultimate gamer, is sitting on a huge profit. None of his transactions have been touched by the bank till date.
Click to expand...
Any update about Mr. Z? Is he still in profit?

Today I saw some posts on this issue. Seems many took advantage of that sbi unipay loophole.
 
dealminer said:
New update

Click to expand...
That person wanted others to pay his due. Before closing he could have settled his due properly if he wanted peace.

He didn't shared any doc stating he wanted to pay but bank told him not to pay. He conveniently ignored and tried to oversmart.

Believe it or not, such kind of small small things exposes mentality of a person and a precursor for a bigger fraud if get oppertunity.

What I would have done?
I would have paid the due once again if I notice such glitch. I would not have closed that card immediately.
 
TechnoFino said:
Update:
  • Mr. X is still in profit - several of his payments (worth lakhs) have not yet been reversed by the bank.
  • Mr. Y still fighting to get the penalties reversed. However, after multiple requests, the bank did ensure there was no CIBIL impact.
  • Mr. Z, the ultimate gamer, is sitting on a huge profit. None of his transactions have been touched by the bank till date.
Click to expand...
How Y ensure there was no Cibil if I might ask?
 
I have a different perspective on this. Here is my POV.

I hope all the transactions are reversed for all people who exploit bank loopholes. I am against exploiting loopholes like this, few hundred rupees is fine but not when the values are in lakhs or crores.

As one user rightly said in the Quora comment: “If someone forgets to lock their safe, it doesn’t mean you can get away with stealing.”
 
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Card_Crafter said:
I have a different perspective on this. Here is my POV.

I hope all the transactions are reversed for all people who exploit bank loopholes. I am against exploiting loopholes like this, few hundred rupees is fine but not when the values are in lakhs or crores.

As one user rightly said in the Quora comment: “If someone forgets to lock their safe, it doesn’t mean you can get away with stealing.”
Click to expand...
Agree to your broader view. But this is something that I cannot agree fully..

few hundred rupees is fine but not when the values are in lakhs or crores.

That means can we keep on doing some 800-900 rs exploitation forever? If it is 1 rupee or 1 crore rupee, it should not be done.
Or don't care if it is hundreds or crores. there is no small thief and big thief. thief is a thief.
 
cardio_guy said:
Agree to your broader view. But this is something that I cannot agree fully..

few hundred rupees is fine but not when the values are in lakhs or crores.

That means can we keep on doing some 800-900 rs exploitation forever? If it is 1 rupee or 1 crore rupee, it should not be done.
Or don't care if it is hundreds or crores. there is no small thief and big thief. thief is a thief.
Click to expand...
I completely agree theft is theft, no matter how big or small the amount. My point is that stealing 500 rs won’t have as much of an impact as stealing 1 lakh or 1 crore in a broader view.
 
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Card_Crafter said:
I completely agree theft is theft, no matter how big or small the amount. My point is that stealing 500 rs won’t have as much of an impact as stealing 1 lakh or 1 crore in a broader view.
Click to expand...
Correct, that's why I said I too agree to the broader view.
But people steal in batches of 500s many number of times. Since all of that is small, it is fine.
But if they count the total over months or years it will be 500*100 times = 50000. Still not bad.
 
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