Beware!!! Online Frauds which may destroy you, Type of Frauds. Increased penetration of internet in India and introduction of services like internet banking, phone banking and digital wallet, banks have seen a surge in transactions done online. This has eased the process for many individuals as they can access their bank accounts with the click of button.
Customers can log in, transfer money and pay from anywhere on the globe with minimum effort. However, with the increase in number of transactions online, deceitful activities have also increased. According to reports by PwC and Assocham the financial industry lost more than 1.26 lakh crore annually due to online financial frauds. Now check more details about”Beware!!! Online Frauds which may destroy you” from below….
Beware!!! Online Frauds which may destroy you, Type of Frauds
Type of Frauds
A survey by KPMG suggest more 45% respondents to have suffered from financial loss due to scams and more than 51% respondents felt susceptible to online frauds. According to data from RBI more than 12,000 crore was lost by banks in the year 2014-15. Also from April 2011 to 20 September 2014, 27,614 credit card frauds, 3,835 debit card frauds and 1,969 internet banking frauds were identified by RBI.
Some of the main types of frauds include:
The user might receive an email from an unknown source claiming to be legitimate (bank, payment banks etc.) asking the user to disclose personal financial information to them. The user should never entertain such request.
The user might receive a request to open a link of the page, or file which would install software on the user’s computer secretly and will thus monitor their activity and might extract card details via online payment.
Users might receive an email from a fraudster asking for help to transfer money into the users account. The fraudster claims to relocate the money overseas and guarantee paying the user some commission.
Advanced Fee Payment Fraud:
The user might receive an email from a company or institution claiming to pay an advance fee for services that will be rendered to the user, the bank details are given in the email. This is fake and users will lose the fee.
Banks have repeatedly assured its clients that online transactions and mobile transactions are totally encrypted and secure. Banks claim that two way authentication is necessary for a transaction to occur. However they have still regularly updated themselves and urged customers to be wary of frauds.Many private and public banks have introduced services like text services, where the user would receive and email whenever any amount is debited or credit in their account. Services like One Time Password (OTP) while doing online shopping have also been introduced to protect a customer from frauds. Banks like HSBC and CITI Bank has provided 2 step authentication and communicate via emails frequently to increase the level of protection.
Cyber experts suggest filing a complaint with the cyber cell of police in case of online fraud. The victim could also send a legal notice to bank in case there is no reply within a months’ time.
In a report published by RBI, the amount transacted online has increased from Rs. 1819 crores in 2012 to Rs. 1, 01,851 crore in 2015 and this number will increase in the years to come. The increase in size and number of transaction done through online banking has also increased the customer’s helplessness toward online fraud. However, banks have also ramped up their policies and are taking the fight to the fraudsters. With stricter policies RBI and online Cyber Cell has vouched to eradicate online frauds.
- Basel III
- Digital empowerment
- Decision Support System
- Transaction Processing System
- Payment bank
- Nostro Account and Vostro Account
- Minor Bank Account
- Auto Sweep Bank Account
- Account Payee Cheque
- Fixed Deposit