Online banking fraud – Security alert for ATM cards, credit cards, and other banking transactions

The digitization in banking has no doubt a revolutionary step to provide bank customers a world class and convenient banking experience at the doorstep. But banking online safely has become the biggest challenge for all of us. Fraudsters are the masters with new fraud techniques and arts they apply to lure people and trap them with their intelligent appearance. This is all about that they collect information’s and work on the data collected.

What is online banking fraud?

Any unauthorized transaction that takes place in an account without one’s own consent through any electronic mediums or online technology is called a fraud online or in another word if someone wrongfully uses your personal data to acquire your money without your knowledge. This is an illegal way out to theft money from an account to another account. The online fraud risk majorly seems risky in internet banking, Debit, credit card swiping and ATM transactions which are powered with personal information’s.

Online frauds in India have been equally raising so as high-end technologies. According to a survey by Fidelity Information Services (FIS), Indians are the most constant victims of online fraud and 18% of Indians are frequently suffered in fraud online in past years.

According to Experian consumer view survey report 2018, people who travel long or a frequent traveler always high fraud exposures as they intend to share personal data to get a better experience, higher consumptions of digital services and Lower tendency to switch providers in the event of fraud. Neglect to any of the dimensions leads to fraud responses. Also according to the survey 53% of Indians willing to share their personal data with business enteritis like Banks, telecom providers and retailers in exchange for services.

So, the desire for convenience pushes us to share our personal information’s exposure to fraud. The more use of digital channels the greater chances of fraud exposure unless we follow the safety measures and security parameters to have banking online safely.

What are the types of banking online Frauds and techniques?


Phishing is a technique to obtain once personal information’s through fake emails. The email you have received appears exactly as the mail you have received from your bank where you are instructed to click on the below link and provide necessary information’s. Basically, the information’s like card numbers, Bank account or Customer Identity number, Card expiry date, CVV number. Etc. On providing the details the fraudster immediately traps and takes a quick action into your bank account.

1. Do not respond to any unsecured URL or website if the URL seems like suspicious (HTTP://) always follow (https://). Here S stands for security protocol.

2. Always mark at the Padlock at the bottom right of the web page. In case it seems suspicious to check the certificate’s data clicking on the padlock to know who owns the website.

3. Before logged in to your net banking follow the net secure access protocol provided by your bank and always opt to browse through the banks portal.

4. Do not make payments or any do transactions using public computers outside.

5. A bank never asks confidentially on email. Or do not open any attachment if the mail is not following the security protocol 6. The phishing messages are often noticed spelling mistakes or sentence error. The style of written may threat to bad consequences.


Trojan-Banker a program designed to theft the bank account data or essential pieces of information of bank customers. Trojan-Banker is a type of malware used in cybercrime by fraudsters for online banking transactions, e-payment systems, and the customer uses debit or credit cards online.

This is a kind of software where fraudsters use spamming tricks to send emails randomly with attachments that insist to be downloading and once downloaded that may lead to blocking data, copying data and deleting data, etc by spreading the virus.

1. Do not open Emails from unknown recourses or open attachments from such emails.

2. Keep updating antivirus in your PC will protect you from such malicious files.

3. Do not open any emails with a lucrative photo or grate offers attached with the email

4. Follow the safety email guidelines provided by your bank on official bank portal.


Fraud can be taken place through text messages indicating for a call back regarding winning prize money, lottery winning money, lucrative Job offers, etc. There might be more details asked to fill like your bank account details may lead to a fraudulent transaction in your account with that information’s provided by you. You may surprise that how it happens; simply the fraudster will get a new SIM card with a fake ID and generate OTP to carry the further transaction under SIM swap. So never ever follow the instructions through SMS from unknown resources. Immediately check with the customer care of the bank.


The fraudster acts like an employee of a bank and asks for important details like your bank account number, 16 digit card number, registered mobile number, ATM PIN, CVV, OTP over a phone call. They will always narrate you with huge seriousness that why they need such pieces of information urgently.

1. Do not respond to such fake phone calls.

2. Banks never ask for such information’s over any phone call or emails.

3. Immediately check with your bank’s customer care or visit any of the bank branches if you have shared details knowingly or unknowingly with such fraudsters

What is the Liability coverage and refund to the customer in a cyber scam or unauthorized electronic transaction?

A customer can be entitled to Zero liability where the unauthorized transaction occurs where Contributory fraud/negligence/ deficiency on the part of the bank.

Third party breach where the deficiency lies in the system and customer notify the bank within three working days after the communication from the bank in respect to the unauthorized transaction in the account. But, a customer will be liable to bear the loss, is due to the own negligence where the confidential have been shared. The customer has to bear the entire loss until you report the unauthorized transaction to the bank. Any loss occurring after the reporting of the unauthorized transaction shall be borne by the bank.

If the unauthorized transaction lies elsewhere in the system i.e. Neither with the customer nor bank, then in that case a customer has to report within four to seven working days. If in case of any delay in informing to the bank, the per transaction liability shall be finite to that transaction value or the amount whichever is lower.

If reporting is delayed beyond seven working days, the liability shall be determined as per the bank’s Board approved policy which will be available in public domain or banks website.

Refund money timeline

After notifying, the bank shall credit the amount identified in the unauthorized online transaction to your account within 10 working days from the date of such notification by the customer. The credit amount into account shall be value dated to be as of the date of the unauthorized transaction. (If any insurance claim applicable that will be settled on the later part by the bank)

Further, it is also clarified that once the complaint is resolved the settlement will not be exceeded 90 days from the date of receipt of the complaint. If exceeds the customer will be compensated as per RBI guideline on the subject.

In the case of bank account, a customer will not suffer the loss of interest, and in the case of a credit card, the customer will not be bear the burden of the interest for the said period.

( Source: Code of Banks commitment to customers 2018)

Online banking fraud – Security alert for ATM cards, credit cards, and other banking transactions
Online banking fraud – Security alert for ATM cards, credit cards, and other banking transactions 1

Security alert for ATM Online fraud -Debit cards, credit cards, and other banking transactions.

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