fraud
19:39
Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts
Wednesday, 15 August 2018
Wednesday, 31 May 2017
Reserve Bank of India
09:34
Norms to protect customer in fraudulent transaction soon: RBI
Norms to protect customer in fraudulent transaction soon: RBI
MUMBAI: Reserve Bank will soon come out with final guidelines on customer protection which would limit customers liability in case of unauthorised electronic banking transactions, RBI deputy governor S S Mundra said on Tuesday.
Last year in August, RBI had issued draft circular on limiting liability of customers in case on fraudulent banking transactions, resulting in debits to their accounts or cards. RBI had asked comments and suggestions on the same.
"Based on the feedback received from the concerned stakeholders, final guidelines (on limiting liability of customers) are expected to be issued shortly," Mundra said at a event here.
HIGHLIGHTS
Reserve Bank will soon come out with final guidelines on customer protection
This will limit customers liability in case of unauthorised electronic banking transactions
RBI deputy governor S S Mundra said technology is being increasingly used in banking services
Mundra said technology is being increasingly used in delivery of banking services in recent years but it has brought in associated risk of security as is evident in few high profile cyber incidents, thefts of personal information, fraudulent use of ATMs, net banking frauds and cases of unauthorised access to banks servers.
"With greater thrust on digital banking, especially in the wake of demonetisation and consequent increase in complaints relating to the unauthorised or fraudulent transactions, a need for having a comprehensive policy to limit the liability of customers cannot be overemphasised," the deputy governor said.
Mundra said the final guidelines will clearly talk about the timeline for reporting fraudulent transactions, the liability customers will have to bear in case of unauthorised transactions and the responsibilities of banks in such instances.
He also asked banks to strengthen their IT security system ahead of the release of the final guidelines.
"In view of the impending guidelines, it would be prudent on the part of the banks to internally tighten their IT security system and customers service delivery through the IT-enabled platform and operating procedures so that grievances are minimised," Mundra said.
He asked banks to improve their call centre services and automated response system so as to provide less hassle to customers while using them.
"My experience is that you keep on navigating through the (IVR) menu and finally you need to talk to the customer service representative. It is good to use the technology, but we need to ensure that the technology is serving the intended purpose," he said.
Mundra said some of the banks have started using artificial intelligence and have done a pilot of putting a robotic assistance in the branch for guiding the customers.
"I would only urge that though it is a smart move, but ensure that it also does not end up in the same fashion as call centres or automated response system. It should be really be able to help the customers," he said.
Source:TOI
Friday, 17 March 2017
Indian Currency
07:29
‘Children Bank of India’ notes worth Rs 9.90L surface in Hyderabad, man held
‘Children Bank of India’ notes worth Rs 9.90L surface in Hyderabad, man held
The Hyderabad Police arrested on Tuesday a man who was allegedly trying to deposit Rs 9.90 lakh in fake currency notes bearing the name of the “Children’s Bank of India”.
Malkajgiri police arrested one Yousuf Shaik from Moula-Ali area of the city after he was caught by Allahabad Bank staff while allegedly trying to deposit fake currency in the denominations of Rs 2,000 and Rs 500.
This comes weeks after fake Rs 2000 banknotes bearing the imprint of the “Children Bank of India” were dispensed from ATMs in Delhi and Uttar Pradesh.
According to the police, Shaik allegedly came to the Allahabad Bank branch near Radhika Theatre at AS Rao Nagar soon after the bank opened at 10.30 am. He quietly handed over a few bundles of notes to the bank cashier to deposit the same in his savings bank account. There were in all 400 notes of Rs 2,000 denomination and 380 notes of Rs 500 denomination, amounting to a total of Rs 9.90 lakh, police said.
The cashier, initially, did not suspect anything as the notes were similar to the original ones. However, while counting he had a close look at the notes and was shocked to notice that they had the imprint of the “Children Bank of India” instead of the Reserve Bank of India, police said.
While holding the customer at the counter, he quietly informed the same to the branch manager, who in turn informed the authorities.
Within minutes, the police arrived on the scene and took Shaik into custody. During interrogation, Shaik, who runs a small stationery shop in Malkajgiri area, told police that he had got the money from some customers.
Malkajgiri inspector Janaki Reddy said after a lot of grilling, Shaik admitted that he had procured the notes from a wholesale dealer in Osmangunj area. “This dealer has several such bundles of counterfeit notes. In fact, they are paper notes used by children for playing,” Reddy said.
Rachakonda commissioner of police Mahesh Bhagawat told Hindustan Times the cops were on high alert since the fake notes used by Shaik were similar to those, which had surfaced in some ATMs in Delhi and UP. “But this person is a small stationery shop owner who tried to cheat the bank authorities with fake notes and is not part of any racket,” he said.
According to bank sources, Shaik opened his savings account only in June 2016 and had been making only smaller transactions. This was the first time that he tried to deposit such a huge amount. Recently, he had approached the bank authorities for some loan for his shop, but it was rejected as he did not meet the requirements, bank authorities said.
Source:Hindustan Times
Thursday, 1 December 2016
volume of transactions
19:33
More Secure Together This Global Shopping Season
More Secure Together This Global Shopping Season
Consumers, retailers, payment processors work together to reduce fraud and enhance security in this holiday shopping season
Thanksgiving in the United States has already come and gone, and we’ve dived headlong into the heart of shopping season. And the season doesn’t stop at the end of December; the shopping frenzy will continue – globally – through February 14 of next year. Many forecasts from research and retail organizations (see some links below) predict retail sales will rise around three percent when compared to the previous year, but the biggest gains will be made in online and mobile commerce. According to Adobe Systems, Black Friday online retail sales in the US were up 21.6 percent this year, while sales via mobile devices were up 33 percent.
More than other times of the year, fraud and security are on the minds of both consumers and the entities involved with settling the transactions, including retailers, banks and payment processors. Payment data, such as credit card or debit card numbers, can be stolen in large quantities and monetized quickly and profitably. This is primarily why financial and personal data remain a prime target for hackers. While there are existing security best practices and safeguards to protect consumers from fraud, it takes both the consumers and the settlement entities to work together to successfully reduce payment fraud.
Here are some tips for consumers on how to keep your data safe in the era of cyber shopping. Some additional tips for both in-person and online shopping experiences:
For in-person shopping, use your smart payment cards, also known as chip-and-PIN cards. These cards have been proven to reduce counterfeiting. The chip embedded in the card makes the transaction more secure by encrypting information when completing a transaction at a chip-enabled payment terminal. It has been available in most of the rest of the world and is now (finally!) available in the U.S.
When shopping online, look for reputable payment processing partners like PayPal, Authorize.Net, and for SSL certificates like Verisign, or accredited by the Better Business Bureau. Whenever you enter payment information online, there should be a lock symbol by the browser’s URL.
If you are a first-time buyer on an online store and you are not sure whether they have solid security practices, make your purchase as a guest instead of creating an account if there’s an option. This way, your personal and payment data will not be stored.
Another way to assess whether the online store has sound security practices is to see whether it has published security and privacy policies on the website. A reputable online merchant will communicate such policies publicly. It’s a good way to learn more about the company.
Keep good records – always check purchases against credit card or bank statements. Report discrepancies immediately to your bank. If you use credit cards, your liability is limited. In some cases, banks will refund the entire purchase.
As the consumers’ partners-in-anti-crime, the retailers, banks and payment processors are the other side of the coin in fighting fraud. Here are some best practices for IT departments to secure their apps and consumer data against fraud:
- For retailers, when completing a transaction, use payment terminals from reputable vendors that are secure and support end-to-end (or point-to-point) encryption, including Ingenico, Vantiv and Heartland. End-to-end encryption means payment data is encrypted immediately when you enter your card number, and that the data remains encrypted as it is transmitted to the processing system. Other acceptable data anonymizing methods include masking and tokenization.
- Don’t keep the data in your payment terminals or on mobile devices that accept credit cards via a dongle, or in any of the apps in your data centers if you can help it. Transmit the payment data directly to the bank or global payment processor to settle the charge. But if you have to store personal or payment data in your IT system, make sure that data is encrypted, masked or tokenized, and that the application is segmented from other applications.
- For banks and payment processors that have to keep the payment data for settlement purposes, purge the transactions from the database as soon as you no longer need them. Unless the transactions are recurring for subscription services, get rid of payment data after the normal length of time that banks allow for processing chargebacks (in the U.S., generally 18 months). For storage, always make sure the data is anonymized and that the database is separated from other apps that are vulnerable to malware, like web apps.
- Maintain Payment Card Industry Security Standards Council (PCI-DSS) compliance for starters, but keep updated on all security best practices. Perform constant penetration testing against the system. Bring on board reputable security assessors to check out your systems. Don’t forget to train your employees to observe security practices, as well as ensure physical offices and stores are designed to discourage insider threats.
Only together can consumers and settlement entities reduce fraud and enhance security in a meaningful way. Start now and don’t stop fighting the good fight! Happy shopping!
Source:Citrix
Thursday, 24 March 2016
Reserve Bank of India
22:38
RBI plans forensic audit of 10 defaulters
RBI plans forensic audit of 10 defaulters
The Reserve Bank of India (RBI) plans to conduct forensic audit of 10 defaulters to know whether lenders followed established practices and processes while sanctioning those loans, said people close to the development. The central bank may invite interests from agencies to conduct these audits by April end, said those people who did not wish to be identified.
Among the borrowers could be companies involved in mobile technology, shipping, power and roads, they said. The loan accounts vary between Rs 2,000 crore and Rs 5,000 crore.
"This is separate from the forensic investigations that banks conduct," said the person. "The scope of these investigations would include whether there were any lapses on the part of the lenders." RBI did not respond to an e-mail seeking comment.
Reserve Bank of India Governor Raghuram Rajan is determined to clean up the Indian banking system by March 2017 as their mounting stressed assets cripple their abilities to fund new projects. While many of the stressed loans (bad loans + restructured loans) may be due to the slowing economy and wrong policies, some could be due to malfeasance. The central bank is going the extra mile to differentiate between the two.
Although banks conduct their own forensic audits, they are limited in scope -probably to know whether the promo ter siphoned off funds and not whether bankers were at fault.
"Banks tend to limit the scope of investigations on what wrong the promoter did," said the person. "While the RBI wants to know if the banks were sleeping at the wheel, as they lent to these companies."
This would be the second ti me when the RBI would be directly conducting forensic audit. In 2015, RBI hired two multinational consultancies to investigate defaulters Su rya Vinayak Industries and Deccan Chronicle Holdings.
When it led to the conclusion that banks violated norms in the case of Deccan Chronicle Holdings, RBI penalised 12 banks.
In both the cases -Surva Vinayak Industries and Deccan Chronicle Holdings -at least two banks had conducted their forensic audits. "While the fine was only about Rs 5 lakh to Rs 40 lakh, this was more like rap on the knuckles," said a banker. If it is proven that in any of the 10 non-performing assets ( NPAs) banks had not followed the procedures, they may be penalised.
The audits may also be a guide to plug the gaps in bank supervision.
"I think it's not just to fine the banks that these independent investigations are carried out," said the banker. "It is also to look at whether there are any loopholes and if additional guidelines, regulations could be framed to prevent similar situations."
The regulator may avoid clashing with other investigative agencies in this matter as it would keep away from those probed by other agencies such as the Central Bureau of Investigation.
"The RBI also wants to see if there are any sectoral problems in these companies as well. But the regulator doesn't want to look into companies which may be investigated by CBI or other agencies," said the source.
Source:BankingUpdates
Thursday, 17 September 2015
rural banking
20:06
Account hacked, over Rs 1 cr transfered from rural bank
Account hacked, over Rs 1 cr transfered from rural bank
The suspense account of Sarva UP Gramin Bank's Khaspura branch was allegedly hacked and Rs 1.39 crore transferred to three different accounts, police said today.
The incident came to light on September 14 when one Siddharth called the bank's Awas Vikas branch asking for Rs 15 lakh from Shanu's account, who he claimed had given him a cheque of the same amount, they said.
Following this, the bank manager of Awas Vikas branch grew suspicious and called the manager of Khaspura branch, who then checked the account of various bank holders, police said.
The manager found that Rs 25 lakh had allegedly been transfered to Shanu's account in Awas Vikas branch by some unidentified person on September 11 -- from suspense account of Khaspura branch of the same bank.
Also, Rs 24 lakh was allegedly transfered to one Shashank's account in Awas Vikash branch from Khaspura branch of the same bank.
Similarly, Rs 45 lakh was 'transfered twice' to an account of Amit Kumar in Muzzafarnagar's Charthawal branch of the same bank.
Regional branch manager, Ashutosh Sharma, said that besides the bank managers, other people who work at the bank also have the password of the suspense account.
City Kotwal Ajay Gautam said that the matter was being probed.
Keeping in mind the rising number of such crimes, efforts were being made to beef-up the cyber security, he added.
Source :BankingUpdates
