The last few years have seen a significant rise in the use of digital modes of payment (Net Banking). While digital transactions seem convenient and easy, this has also led to cybercriminals swarming the internet to perform online crimes including data fraud, identity theft, and hacking. The Indian Banking Finance Services and Insurance (BFSI) sector has been at the forefront of cyber-attacks – targeted at the Asian region.
Different forms of Banking Frauds
- Phishing:
This type of banking fraud is used by cybercriminals to obtain sensitive or personal information such as credit card numbers, bank information, or passwords. It is usually carried out through spoofed emails and spoofed websites that prompt users to disclose their personal details. Fraudsters distribute links to these websites by SMS, social media, email, and Instant Messenger, among other methods.
- Vishing:
Phone calls pretending to be from bank / non-bank e-wallet providers/telecom service providers to lure customers into sharing confidential details such as credit card, bank account, and social security numbers in the pretext of KYC-updation, unblocking of account / SIM-card, crediting debited amount, etc.
- Smishing:
Such frauds combine phishing with a short message service. Attackers send SMS messages (or text messages) to trick victims into sharing personal information or installing malware on their devices.
- ATM card Skimming:
In this method, the secret information in the magnetic strip of your credit/debit card is copied and then used on a counterfeit card. Skimming devices are installed in ATM machines by fraudsters who take data from the customer’s card. The information so captured can be used to make fraudulent transactions.
- Remote Access:
Fraudsters trick customers to download an application on their mobile phone/computer which can access all the customers’ data on that customer’s device. This information is then used to carry out unauthorised transfers of funds or make payments using the customer’s net banking/payment apps
- Frauds using online sales platforms:
This involves misusing the ‘collect request’ feature of UPI by sending fake 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. Once the customers call on these contact numbers, they are asked to share their card credentials/details for verification. Assuming the fraudster to be a genuine representative, customers share their security details and thus fall prey to fraud.
Ways to protect yourself from online frauds:
- Use strong, unique passwords for your net banking and turn on two-factor authentication for them.
- Avoid using public computers for online banking, as this exposes your personal and financial information.
- Use secure and verified apps or websites for online monetary transactions. Avoid questionable websites.
- Avoid using public Wi-Fi. Use only a secured internet connection for online payments.
- Protect your computer and smartphone with strong, up-to-date security software. The antivirus software must be installed and updated on a regular basis.
- Avoid sharing your account details including login ID, password, card details, and other information with anyone.
- If your card is lost, notify the bank immediately and get it blocked.
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