Frauds in Online transactions

Today our office cleaning lady was very worried .On enquiry we were told that her son got his first salary which was credited to his Bank of India account. But when he went to withdraw the amount, there was no balance; it has already been withdrawn. On further enquiry he revealed that someone asked him his debit card number for reissuing a new card and after some time also asked to share the  OTP which was just sent. Ignorant of the risk, he shared the details.

The long queues before ATMs and Bank branches for exchange, deposit and withdrawal of cash has made everyone realize that electronic transactions are much convenient. But it has its own risks of frauds . We describe herewith the various frauds in online transactions and precautions to be taken. Card frauds basically involve theft of identity or information on your card.

ATM related frauds

  •  When you swipe your card in ATM, a skimming device pre attached to the card reader slot of the machine captures the card details and the pass word used.
  • When you insert the card, the card is trapped inside. Unable to retrieve the card, the depositor leaves. Then the fraudster manages to retrieve it after the depositor leaves.
  • When you face any problem, some unknownbystander in the room or outside will approach (Shoulder surfing) you to help and  will make reveal you PIN
  • The PIN is written on the back of the card and the card is forgotten inside the ATM.

Online Transaction related Frauds

  •  The Fraudster takes (reroute) you to a fake website that seems similar to the original and then steal the card information.
  • The Fraudster makes you to download deceptive software and steal card information.
  • The card details are stealing through Public Wi-Fi.
  • Themalicious software (malware) inserted to ATM system or Bank server access confidential data stored inside it.

Precautions (General)

  • Use ATMs attached to the  bank branches
  • Cover the keypad  while entering the PIN
  • Do not take help from strangers while doing transactions.

Precautions (Online transactions)

  •  Make sure accessed websites use the ‘https’ instead of ‘http’
  •  Install antivirus software on your computer and smart phone
  •  Do not use your debit card for ecommerce transaction instead use Credit card
  • Use virtual keyboard to enter CVV
  • Register your mobile number for updates on Alerts
  • Always log out form social media sites(Face book, Twitter, Linked in etc)
  • Change password periodically

Other Precautions

  • Don’t disclose details like ATM PIN or CVV
  • Don’t leave spaces after numbers in cheque books
  • Finally check your statements regularly
  • If Fraud happens with you, immediately inform the Bank or Credit card company

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.


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