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PHISHING SCAM
VIRTUAL BANKING OPERATIONS AND FRAUD
In this era of digital India where everything is being availed by just one click whether it is an electronic product or anything and as we know in this growing world net banking is also playing a very major role in it. Through this anyone can access his/her account from any corner of the world and at any point of time. Therefore Virtual Banking can be defined as a provision to access banking and related services online without actually going to the bank branch / office in person. Any financial institution which avails the traditional banking services online is a virtual bank. Virtual banking facilitates bills payment online, check account details, secure loans, withdraw and deposit money anytime as per the convenience. Some of the virtual banks are ATM’S, Electronic Clearing service scheme, centralizes fund management scheme, etc.
BENEFITS
- Virtual banking has the advantage of having cheaper cost of handling a transaction as compared to branch banking .
- Through virtual banking, customers get quick responses as well as it increases customers satisfaction and can lead to higher profits via handling a large number of customer accounts.
- Through lower cost of operating branch network along with reduced staff costs leads to cost efficiency under virtual banking.
- Virtual banking allows the possibility of improved quality and an enlarged range of services being available to the customer more rapidly and accurately and at his convenience.[1]
CLASSIFICATION OF THE SERVICES
- Basic level service: They are provided by a bank website which gives information on different products and services.
- Simple Transactional Service: Under this, the customer carries out simple functions like give applications for different services, check account balance etc.
- Fully Transactional Websites: They allow customers to perform core banking functions such as transfer of funds, payment of bills etc.
PROBLEMS
- Legal and Regulatory issues like jurisdiction of law, validity, gaps in legal and regulatory environment of e-commerce etc.
- Security and Technology issues like maintenance of sophisticated technology standards, fear of virus, spyware, verification of digital signature, etc.
- Supervisory and operational issues like risk control, advance warning system, etc.
LEGAL ISSUES
NARASIMHAM COMMITTEE
India has grown significantly in terms of its economy so has its banking sector. This committee was set up with a view to grow India’s baking sector and recommending legislations and regulation to make it more effective, and competitive.
KHAN COMMITTE
This committee recommended the setting up of universal banks in India
VERMA COMMITTEE
This committee recommended the need for greater use of Information Technology even in the weak Public sector banks.
E-BANKING FRAUDS and SAFEGUARDS
- Securing your account : Avoid online banking on unsecured wifi systems and operate only from PCs at home. Never reveal password to anyone. Password should be alphanumeric and one should change it frequently.
- Phishing: A person’s personal details are obtained by fraudsters posing as bankers, who float a site similar to that of the person’s bank. They are asked to provide all personal information about themselves and their account to the bank on the pretext of database up gradation. The number and password are then used to carry out transactions on their behalf without their knowledge.
- Spam: Spam is an electronic ‘junk mail’ or unwanted messages sent to your email account or mobile phone. These messages vary, but are essentially commercial and often annoying. They may try to persuade you to buy a product or service, or visit a website where you can make purchases or they may attempt to trick you into divulging your bank account or credit card details.
- Nigerian Scam: Nigerian or Frauds 409 or 419 are basically the lottery scam in which some overseas persons are involved to cheat innocent persons or organizations by promising to give a good amount of money at nominal fee charges with intent to steel money.
- Spyware: Spyware such as Trojan Horse is generally considered to be software that is secretly installed on a computer and takes things from it without the permission or knowledge of the user. Spyware may take personal information, business information, and secretly gives it to someone else.
- ” Check sites Url: Always check the URL of your bank’s web site. Fraudsters can lure you to enter your user ID and password at a fake website that resembles your bank. If you see anything other than the bank’s genuine URL, it has to be fake and you should never enter your bank detail or password in it.
- Fool-proof password: Change your online banking password at regular intervals and your password should not be easy to guess like your name, birthday, kids or spouse name, etc. Always keep alpha numeric passwords.
- Always check ‘last logged’: Most banks have a ‘last logged in’ panel on their websites. If your bank has it, check the panel whenever you log in. If you notice irregularities, report the matter immediately to your bank and change your password immediately.
- Keep your system up to date: Regularly check for security updates for your computer operating system. Most security updates are aimed at reducing risks to your computer, these may be data-related or otherwise. Make sure that your operating system and browser have the latest security patches installed. And, always install these only from trusted websites.
- Public access can be injurious: Don’t leave the PC unattended after keying in information while transacting on the website. Avoid accessing your bank online at cyber cafes or on a share or public computer. Also, avoid locations that offer online connections through Wi-Fi, where privacy and security are minimal.
- Follow Bank instructions: Banks issues instruction which are safeguards from the hackers and say that appropriate upgradations are carried out from time to time by their IT departments for risk mitigation.
- Protection: Learn the ways to protect yourself from online banking fraud schemes. Detect Trojans that appear on your PC in the form of viruses, spyware or malware through Antivirus Software, anti Spyware, and Adware.
HOW TO FILE AN COMPLAINT?
- Section 46 of Information Technology Act, 2000 for lack of reasonable security measures taken by the bank.
- Section 43A of Information Technology Act, 2000 states that the banks and other intermediaries that do not use reasonable security measures for safe banking will be liable to pay adequate compensation to the customer. [2]
A person who is victim of any online baking fraud can file an application. With the adjudicating officer. The bank has the liability to prove that it took sufficient measures to prevent any illegal and unauthorised transactions.
By Nandini:-
https://www.google.com/amp/s/www.myadvo.in/blog/online-banking-fraud-in-india/amp/
https://www.google.com/amp/s/www.gktoday.in/gk/what-is-virtual-banking/amp/
Very interesting and informative article
It is a article through which i came to know alot of thing . I specially liked the way it defines about the types of fraud possible . It’s very interesting and quite informative.
This is so informative and helpful. One of the best blog I have read!!
Banking Frauds keep on increasing and this blog is really informative!!
The article is very well written although I would like to point out something which I recently learned through a guy in the cyber security field. When you set a password, it should be a solid ine, hard to guess. But this suggestion of constantly changing passwords at regular intervals apparently is less effective because if you have a solid password once, then you don’t have to do it. Changing it regularly would mean sometime or the other you would slip up and run out of combinations that are complicated and end up using an easier password than the one you had set earlier and I think that makes sense. I know it’s against what we are told…but I do agree with this.
Increase in number of cases of online fraud is matter of great concern.
Mostly people are unaware of the precautions and provisions available for them which can help them in avoiding such situations.
This article is very well structured and it has a good flow and it is easy to understand.
Very informative article.
The transmission from the old days was never been easy but it was safe earlier but today it is fast and effective even it is safe and good but cannot guarantee that and only relying on others is not an option is it is better to take measures before any thing happens wrong and it requires the perfect knowledge of the use of online banking which is provided in the article
Very few people are aware about these frauds and very less case are registered in this matter. Because don’t know that they have a law that protects their this right and in certain cases people don’t even get to understand what has actually happened to them.
Government encourages people to go digital but it is evident that being digital does not mean that your money is entirely safe. Sometimes by consumer or even by bank’s mistake these scams take place therefore it is essential to be vigilant about keeping your details safe. Checking for secured websites as bank websites are always secured. Never sharing your information with anyone. But even following simple rules are not enough a simple example is your average ATM machine. Is it full proof? I don’t think so with little trickery anyone can access into that machine because it is so outdated and less maintained that the software inside it can be easily manipulated.
The article was well written and we’ll mentioned all the possible frauds and prevention to that scams.
Well Written Great Article
The article in the era of increasing cyber crimes, is dealing with the very much useful and important topic that is how cyber crimes may happen in banking sector, especially when access to bank accounts are online, online banking transactions are taking place, etc. How the banks, itself are prone to such cyber crimes especially when there are a number of users using the services online. In the present scenario of pandemic, the people in lockdown are also supposed to use the bank services online. It becomes mandatory to get well versed with pros and cons of such services to provide security to ourselves as well as others. The article at end note explains the topic very nicely and smoothly with clarity…….
Banking cybercrimes are the most popular in India. They are easy to identify however, some people do not have knowledge of such crimes and become a victim of such crimes. Nowadays people are moving towards online banking thus it becomes important to aware the public of banking frauds.
This article is very informative to protect ourselves from such frauds and scams. Vigilance is the best defence against online banking frauds and scams.
a very informative and helpful article n online banking and where and how to report in case of any problems on the part of the bank.A good read .
The article is well structured as it clearly explains about the virtual banking operations and fraud. Firstly the article explains about the virtual banking and their benefits which also leads to the classification of the service. The article is very helpful that it elaborate the problem in the virtual banking and laws in the fraud.one can be definitely become aware of the virtual banking operations and problem by reading this outstanding article.
In the age of Unified Payment Interface, we should be very careful with our pin and mobile phone, as just a click, and our bank account balance can go to zero! There are several scammers who ask for the person to tell the upi code pin and in return, they say that they are from bank, and want to repair their account. Beware of these frauds. Spreading awareness about the security is extremely important as people don’t know much about them.