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The payment industry is long being creating new innovations to avoid the payment frauds and to create a secure environment for the financial transactions. However, it cannot be done alone it is that which everyone has to be a part of it and then only there can be a secure transaction.
As on 19 October, the country woke up to a banking nightmare. The State Bank of India (SBI) blocked 6 lakh debit cards after a reported malware-related breach in a non-SBI ATM network. In what is possibly India’s largest financial data breach, nearly 32 lakh debit cards across 19 banks, including HDFC Bank, ICICI Bank and Axis Bank, were compromised. As per the National Payments Corporation of India (NPCI), 90 ATMs were impacted and at least 641 customers lost Rs 1.3 crore in fraudulent transaction. That’s how a person gets affected because of the online financial transaction as it becomes today’s necessity but also a risk factor. So it becomes our basic requirement that we have to take care about theses things by our self and we should on own take full precautions so that anyone don’t get under this trap of the fraudulent persons.
A payment fraud occurs when an unauthorized person gains access to your card or its details. Fraudulent means are utilized to gain such access. Once the person has access to your card details, a number of fraudulent transactions can be carried out. Simply put, you are at a risk of losing your hard-earned money.
The consumers should be informed about what they can do to protect themselves is a crucial preventive measure in the evolving global and regional fraud landscape. A good start is in understanding the different kinds of fraud associated with debit and credit card transactions — there are eight major kinds.
The first category, lost or stolen cards, it’s a common one, and should be reported immediately to minimize any damages.
The second is called “account takeover” — when a cardholder unwittingly gives personal information (such as home address, mother’s maiden name, etc.) to a fraudster, who then contacts the cardholder’s bank, reports a lost card and change of address, and obtains a new card in the soon-to-be victim’s name.
The third is counterfeit cards — when a card is “cloned” from another and then used to make purchases. In Asia Pacific, 10% to 15% of fraud results from malpractices such as card skimming but this number has significantly dropped from what it was a couple of years prior, largely due to the many safety features put in place for payment cards, such as EMV chip.
The fourth is called “never received” — when a new or replacement card is stolen from the email, never reaching its rightful owner.
The fifth is fraudulent application— when a fraudster uses another person’s name and information to apply for and obtain a credit card.
The sixth is called “multiple imprint”— when a single transaction is recorded multiple times on old-fashioned credit card imprint machines known as “knuckle busters”.
The seventh is collusive merchants — when merchant employees work with fraudsters to defraud banks.
The eighth is email order/telephone order fraud, which now includes e-commerce, and is the largest category of total payment card fraud in Asia-Pacific, amounting to nearly three-quarters of all fraud cases. The payments industry is working tirelessly to improve card verification and security programs to prevent fraud in so-called “card-not-present” transactions online or via email order and telephone transactions.
5 TRAPS SET BY FRAUDSTERS AT THE ATM
1-Hidden Camera- Small pinhole camera may be placed on the machine or even the roof at strategic positions to capture your PIN.
2- Card Skimmer- This device is installed in the card reader. If the slots feel loose or tightly then don’t enter your card inside it.
3- Shoulder Surfers-These are people roaming in the ATM room or outside. They will either try to see your pin from the back or try to help you by saying that your card is stuck.
4-False Front- It may be a little difficult to detect front, it is installed on the top of it. This allows fraudsters to take your PIN as well as money.
5- Fake Keypad- This is placed on top of the actual keypad. If the keypad feels loose then don’t enter the pin.
HOW TO PREVENT FRAUD
Some basic preventive measures are as follows-
ATM SAFEGUARDS- this says that if the ATM is not in work from so many days then one should not go to that ATM. If no watchman or security guard is not on that ATM then this clearly shows that it is unsafe to take out money from that ATM.
COVER KEYPAD: Make sure to cover the keypad with your hand while entering the PIN to escape any cameras attached nearby.
DON’T TAKE HELP: It is advisable to use only your own bank ATMs, particularly those attached to a bank branch and those that have security guards. Also, avoid taking the help of any person loitering outside the ATM or volunteering to assist you if you get stuck.
FOR TRANSCATIONS THESE PRECAUTIONS SHOULD BE TAKEN-
Use safe sites: Go only to well-known, established sites for e-shopping. “Remember to confirm the site’s legitimacy before using it and shop only on those that are Secure Sockets Layer (SSL)-certified. These can be identified through the lock symbol next to the browser’s URL box.
Debit card: Make sure that you do not use your debit card for e-commerce transactions. This is because if your card is compromised, the entire cash in your bank account can be wiped out instantly. The credit card, on the other hand, offers a month’s grace period before the cash leaves your account, during which the investigation can possibly nail fraud.
Hide CVV: When you enter the CVV on the site, it should be masked by asterisks. This is especially important while shopping on foreign websites where the CVV is the only point of verification. Also use a virtual keyboard to avoid keystroke logging.
Public Wi-Fi: “Customers must avoid using unsecured W-Fi networks or public Wi-Fi as these are easy targets for identity theft cases in online transactions” says Anand of Axis Bank.
Register for alerts: This is a very important step since the bank will alert you to any online card transaction or ATM withdrawals the moment these take place. Also remember to update your mobile contact number in case of a change.
Don’t forget to log out. Always log out from all the social media sites and the other online source also to ensure the data safety.
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