More than billion mobile phone users and half a billion internet users make India the second largest country in terms of number of people connected to a telecom network and internet. India is in the middle of a digital revolution where more and more transactions are moving from offline to online. This revolution does reduce the cost of transactions and brings services at the touch of a button but also comes with its disadvantages.
“Congratulations! Your Mobile Number has won 800000 GBP in the 2018 COCA-COLA International Contest. Click on the below link to claim your prize.” These kind of messages have become a mainstay on our mobile phones in spite of subscribing to the DND (Do Not Disturb) service by TRAI. These scams first surfaced on e-mail about a decade ago and now due to the increasing use of mobile phones, they have found their way on our inbox. Now the touch of a button may expose you to an online fraud.
India has the highest rate of online banking frauds in the world. The speed with which India is embracing digital, this number is going to increase exponentially and hence it is imperative that people take preventive measures to ensure that they become aware before they are scammed and not otherwise.
The most common type of online banking frauds are stolen credit card or debit card information, cloning of debit or credit cards, phishing or fraudulently making customers give their own information, stolen PIN number or banking passwords, hacked accounts and mobile apps, stolen CVV and OTP number and many more.
Tips to avoid an online banking scam
1. Don’t disclose your PIN
No bank official or retailer will ever ask for your Personal Identification Number (PIN). If someone is asking you for your PIN, then it is surely a scam.
2. Enable two factor authentication on your email accounts
Fraudsters gain access to your email accounts and then used the saved information in your account to scam you. Once you enable two factor authentication, you need a password as well as some other type of information like an OTP to login to your account.
3. Do not open unsolicited attachments
Always check the sender of the email before opening an attachment. A very common modus operandi is to use part of a very famous company as part of their domain name to make the user believe that the email is genuine. For e.g. you will receive an email saying that you have won an iPhone and the email asks you to click on a link or download an attachment. The email may use address such as email@example.com. Which has nothing to do with apple.
Always download apps from the official store apps of your operating systems. They ensure that the app does not ask for sensitive financial information.
The Reserve Bank of India has tried to allay the fears of the customers who do not want to embrace digital banking by limiting their liability when faced with fraudulent transactions by giving them a window of three days to report the fraud. This however does not include cases where the customer himself or herself disclosed their financial credentials. The financial and banking entities are using various from of mass media and communication to create customer awareness regarding various online frauds but in the end the onus lies on the customer to stay aware and exercise caution when transacting online.
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The CSR Journal Team