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Online Frauds Part 3 : Bank Fraud During Transactions

bank fraud

  • BANK TRANSACTIONS : Banking fraud is also among the top online scams; however the RBI is in the process of reducing the liability of the customer. According to a report by RBI, incidents of bank fraud , as well as payment cards, ATMs and internet banking, have risen from 8,765 in 2012-13 to 11,997 in 2015-16.
  • Modus operandi : Identity theft is the only essential way to cheat an individual when it involves banking transactions, where the individual’s payment card i.e. credit/ debit card details or  bank account data is stolen thereby victimized by bank fraud. It is the theft which is carried out in a variety of ingenious ways by scamsters like by manipulating the good faith of customer in banking system.
  • Online stealing : Throughout e-shopping or bill payment, if you do not opt for a secure website or payment channel, it’s easy to steal your card data by intercepting the information. You can be routed to a fake website or the information can be traced through keystroke logging. Malware or virus can even be introduced in your computer which provides access to all the details stored in your e-mail and even your saved passwords and login details.
  • SIM swipe fraud : This is a comparatively new technique, where in the scamster contacts the mobile operator with fake identity proof and gets a duplicate SIM card. Therefore the original SIM is then deactivated by the operator as if a single SIM can only be issued on a single number.
  • Fake calls and emails : “Vishing has become common in the past few years and is done via a phone call. Customers, inadvertently, share their CVV number or OTP which is used for identity theft,” says Mr. Kislay Chaudhary.
  • Mobile phone apps : There are some apps that seek access to the information on your phone. Make sure that the app is safe because it is an easy way for fraudsters to hunt essential data stored on your phone.
  • Public terminals or Wi-Fi : If you use laptops in public areas or conduct mobile transactions over public Wi-Fi, it can be intercepted and your card details stolen.
  • ATM withdrawals : This is another hot spot for fraudsters to gain access to your card information and PIN. Scamsters use spying cameras and ATM skimmers to gain data (see are you likely to be conned?) from ATMs

Preventive steps  Be conscious of any mishappening by installing protective features on your mobile phone as well as computer, and along with that educate yourself. Here are some steps you can take to avoid bank fraud:

  • Register for SMS and e-mail alerts : This can help detect a transaction you haven’t made and safeguard from bank fraud. In such a case, call up the bank’s customer care number. Also, if your mobile stops working for uncommon reasons, confer with your mobile operator.
  • Don’t disclose details : “It is advised not to provide internet banking password, ATM or phone PIN to anyone or answer unrecognized mails or calls inquiring for bank account details for any cause they mention,” says Mr. Kislay Chaudhary “No bank or credit card firm personnel is authorized to ask a cardholder for his card details.”
  • Hide CVV, go virtual : “While entering the CVV on a website, ensure it is cloaked by asterisks and also the number is not visible on screen. This is especially important when shopping on foreign websites where the CVV number is the solely purpose of verification and approval,” says Mr. Kislay Chaudhary. Also, while transacting on websites to avoid keystroke logging use a virtual keyboard and while using an ATM in offline mode do cover the keypad with your hand.
  • Don’t save details on sites : several websites ask to save your payment cards i.e. credit/ debit card details for future purchases. “But one should never ever save such type of confidential data because if the scamster duplicates the SIM, he then have the authority to login anywhere he wants which can be dangerous,” says Mr. Kislay Chaudhary. Neither should you do it on any server, desktop, or mobile to avoid skimming and alternative frauds.
  • If you’re cheated : The moment you observe any activity related to online banking transaction which is out of your knowledge immediately call the bank and ask them block the payment card. Follow it up with a written complaint and declaration. The bank should respond in thirty days, and if it doesn’t, lodge a complaint Ombudsman about this If this doesn’t help, complain to the district consumer redressal forum and then to the court of law

Read more : kislay chaudhary advice on bitcoin fraud.