Banks reported over 21,000 cases of card and net banking fraud summing to ₹128 crore amid October-December 2019, as per official information. Fakes related to ATM and charge cards accounted for more than half the number. Experts say skimming where cybercriminals attach a bogus card reader atop the real reader – it remains the foremost common strategy, taken after by phishing and hacking of bank servers. A global survey by ACI Worldwide shows that India is among the five most powerless nations when it comes to card fraud.
Over 90% of these misfortunes were to the government possessed banks whereas the share of incidents that radiated from these lenders was at 55.4 percent. Sachin Das, Practice Head Cyber Security & Risk Services stated, “Bank should upgrade their Personal Banking Application (including Mobile App) to include a new security feature by giving a User option to enable or disable Card Contactless ON/OFF facility. By Default it should be set it always set it to OFF. Customers can then switch it ON only when they are in process of making payment @POS (Point of Sale) terminal and for the rest of the time they can switch it off as per best card security guidelines. Contactless Card is a fast and convenient way to pay for everyday purchases. It is a secure, contactless chip technology designed to help you spend less time at the cash register and give you the freedom to do the things that matter most to you. In India floor limit to Contactless Card is up to RS 2000 each time the purchase is been made. On 15th Jan 2020, The Reserve Bank of India (RBI) has restricted banks from issuing contactless credit and debit cards by default for all cardholders and said that this facility along with international transactions will have to be enabled by the user.”
Harsh Chauhan, Full-Stack Growth Marketer said, “According to reports, The information of more than 30 Million credit & debit cardholders was leaked to be sold online for sale at one of the underground’s most popular crime shops, one of them known as Joker’s Stash began selling card data on 27th January. These cards were issued by thousands of financial institutions across 40+ U.S. states. Most card breaches at restaurants and other brick-and-mortar stores occur when Hackers manage to remotely install malicious software on the retailer’s card-processing systems, any of its 850 locations nationwide. Even, Wawa had admitted to being hacked back in December 2019. The website priced US-issued records from the breach at $17, while the median price for international records was $210 per card. If the online market place leaks the entire data, this could very well be one of the biggest card breaches of all time. After looking at this recent increase in cyber-threats and card fraud, the Reserve Bank of India had recently announced changes to card payments that enable cardholders to switch on/off their card at will for different transactions at a number of places.”
Subhash S., Technical Architect Cyber Security at NTT speaking about the present scenario of people losing money from bank account said, “Recently we can hear a lot about people losing money from their bank account by fraudulent transactions. In India, the Reserve Bank of India has made it mandatory for the 2-factor authentication for domestic credit card transactions but some foreign transactions can be completed using only the card number, CVV, and expiry date that is available on the card itself. So when you are swiping the card please make sure it is happening in front of you to prevent others from memorizing/recording your card details. Also, try not to expose card details to the CCTV cameras placed at the shops. As a preventive measure change your PIN regularly.”
Recently 3,766 incidents of frauds were identified in FY19, a 15% spike from a year back, whereas the misfortunes caused saw an 80 percent rise from the last year, indeed as FY18 saw the foremost banking fraud in India’s history where Nirav Modi siphoned off about Rs 13,000 crores from Punjab National Bank in February 2018. RBI commented most of these frauds were because of cheating and forgery, followed by misappropriation & criminal breach of trust. Also, small frauds less than Rs.1 lakh was just 0.1 percent of the sum included.