E-FRAUD AND PRECAUTIONS TO BE TAKEN

First time the cyber fraudsters have tampered with Know-Your-Customer information of bank and swindled money.

MODUS OPERANDI OF THE FRAUDSTERS OR E-FRAUD:

1)      The fraudsters able to get the victim’s bank account details, such as, login and password from illegal source or databases.

2)      Then they hacked into the bank’s KYC i.e. Know-Your-Customer database of the victim’s bank. Thereafter they removed the victim’s mobile no. from the available database and replaced the same with their own mobile no.

3)      Thereafter they logged into victim’s bank account by using a Nigerian IP address and generated a One-Time-Password i.e. OTP.

4)      After receiving the OTP on their mobile phone, they used it to transfer that hacked money to various bank account in India. The said accounts were belonging to “MULES” (mules are those people who transfer money which is acquired illegally.)

5)      Before that they already set up agents, to withdrew this cash and gave them 10% of the “mule” accounts or the loot they made from this transactions.

THE USUAL METHOD OF E-FRAUD:

1)      Most of the financial hacking attacks start with ‘phishing’ (a term is used to describe an online scam, where fraudsters steal a victim’s personal information by sending out e-mails that appear to have originated from legitimate financial institutions.)

2)      Which ask for user’s update or validation of his bank account information after clicking on a link given in the said e-mail, which is to be a fraud link.

HOW TO KEEP SAFE?

(The Security Steps to be taken by us to avoid such type of frauds)

1)      Those who are using Internet Banking or Online Transactions should maintain two separate bank accounts – one for online banking transactions and second for offline banking transactions.

2)      In Online Banking Account, only maintain such amount that is needed for handling online transactions only, such as paying online bills of Electricity (BEST), Telephone (MTNL) or Railway / Air / Bus ticketing at (IRCTC) sites* , Online booking of movie tickets, Online Purchase etc. Never keep more than enough money anytime in this account.

3)      Always keep your extra money in your offline account only or in Fixed Deposit Receipts.

4)      If you are exhausted money in your Online Account, then you can transfer your Offline money, only such amount that you need, into your Online Account. This can be done through transferring to Online account or DD, Cheque or by Cash etc.

5)      If possible, visit your bank branch and ask them to issue you chip-based credit/debit cards to prevent such type of offences or cloning of your cards.

6)      As far as possible, avoid mobile banking/mobile payment gateway till the standards, rules and regulations are formed.

WHAT ACTION TO TAKE?

(If you hit by online fraud or net banking fraud)

1)      A letter to be written to the concern bank manager, keeping an acknowledgement of the said letter with you for future reference, correspondence or action.

2)      File an Online Complaint with bankingombudsman.rbi.org.in

3)      File an F.I.R. with nearest police station.

4)      File a case with the state adjudication officer appointed under section 46 of the IT Act, 2000 with the help of technical lawyer.

* these are Indian Institutions.