With the significant increase in the use of digital systems in the last few years, cybercriminals have stormed the internet to commit online crimes like data fraud, theft as well as hacking and the banking sector is also not out of their reach.
To conduct illegal transactions, such cyber criminals attack online banking services, credit/debit/ATM cards, payment portals and other net banking methods. For years, cyber security experts have been paying attention to one major factor – cybercriminals are becoming more sophisticated, making it harder for organizations to defend against such attacks.
devious ways
The most common forms of banking fraud in India are:
- Vishing- Phone calls from Banks/Non-bank e-wallet providers/telecom service providers to entice customers to share confidential details on the pretext of KYC-updation, unblocking of account/SIM-card, depositing debited amount etc. For.
- Phishing – Fake email and/or SMS designed to trick customers into thinking that the communication originated from their bank/e-wallet provider and contains links to extract confidential details.
- Remote Access – Enticing customers to download an application on their mobile phone/computer that can access all the customer’s data on that subscriber device.
- Misuse the ‘Collect Request’ feature of UPI by sending bogus payment requests with messages like ‘Enter your UPI PIN’ to receive money.
- Fake numbers of banks/e-wallet providers on web pages/social media and displayed by search engines etc.
That’s not it. According to a report from last year, most of the online bank frauds happen on the second and fourth Fridays of the month. Similarly, most bank fraudsters prefer to target victims using mobile phone apps instead of PCs and laptops, which are slower and more likely to be detected. Mobile phones are easy to dispose of and are also less expensive.
The RBI noted in its annual report, which was published on May 27 last year, “Central banks extensively used their social media handles to educate people on safe digital banking practices. Because pranks by some fraudulent entities engaged in phishing, financial fraud and other cyber crimes increased during the lockdown.”
Last year, the RBI also said that in 2020-21, for the first time in 8 years, the total amount of frauds reported by banks has come down, while private sector banks are reporting a higher number of card-related thefts. trend is increasing. Internet banking.
RBI noted that commercial banks reported Rs 1.38 trillion in frauds in 2020-21, up from Rs 1.85 trillion in the previous year. Banks reported frauds worth Rs 36,342 crore in the first half of the current financial year.
Redressal
Firstly, it needs to be understood that it is not only consumers who are victims of online banking frauds. As the frequency of data breaches and fake emails targeting stores and organizations is increasing, businesses are becoming more vulnerable to cyber fraud.
RBI in its last updated guideline mentioned that fraudsters try to obtain confidential details including user ID, login/transaction password, OTP, debit or credit card details such as PIN, CVV, expiry date and other personal information.
As noted by the central bank, “RBI urges the public to practice secure digital banking by taking all reasonable precautions while undertaking any digital (online/mobile) banking/payment transaction. These will help them prevent financial and/or other losses.”
It has also issued some guidelines for users to avoid such incidents. RBI urged customers to avoid sharing account details including login ID, password, card details and other information, not even bank officials, “however genuine they may seem”.
According to the bank, any phone call or email claiming to block the banking account on the pretext of not updating KYC or advising people to click on a link to do so is a frequent tactic used by fraudsters .
“Do not accept offers to amend or expedite your KYC. Always visit the official website of your bank / NBFC / e-wallet provider or call the branch,” RBI said.
It also asked people to avoid downloading unknown apps on their smartphones, accessing the official website of the bank/NBFC/e-wallet, ensuring that users do not share the password of the email linked to your bank/e-wallet account and follow other preventive measures.
“Don’t be misled by advice giving information about foreign remittances, receipt of commission, or depositing money on your behalf with the RBI for winning the lottery. Secure your cards and set daily limits for transactions. You can also set and enable/deactivate limits for domestic/international use. This can limit the loss due to fraud,” according to the advisory.
“Check your email and phone messages regularly for alerts from your financial service provider. Immediately report any unauthorized transactions to your bank/NBFC/service provider to block the card/account/wallet, so as to further to prevent any damage.
Although large-scale data breaches in international corporations have attracted the most attention, it is a fact that all organizations are vulnerable to fraud. Banking fraud can rapidly jeopardize a company’s finances and, in some situations, even destroy its brand. Every organization also needs to follow certain safety measures to prevent this.
This may include spreading awareness among employees, always using a secure internet connection, using complex passwords and paying attention to suspicious activities such as suspicious emails.
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