Page 39 - Banking Finance May 2020

ARTICLE

Spyware: Spyware such as Trojan horse is generally
considered to be software that is installed on a computer
without the knowledge of the user and may take personal
information, business information, bandwidth; or processing
capacity and secretly gives it to someone else.

Card skimming: Card skimming is the illegal copying and
capture of credentials and PIN data on credit and debit
cards. Skimming can occur at any bank ATM or via a
compromised EFTPOS (Electronic Funds Transfer at Point of
Sale) machine. Captured card and PIN details are encoded
onto a counterfeit card and used to make fraudulent
account withdrawals and transactions.

around 50,000 cyber frauds in the country's Scheduled ATM Skimming: Fraudsters can attach false casings and
Commercial Banks (SCB) in 2018-19 fiscal. In reply to an RTI PIN pad overlay devices onto genuine existing ATMs, or they
(Right to Information) query, the RBI stated that can attach a camouflaged skimming device onto a card
cybercrimes are related to ATM, debit and credit cards, and reader entry used in tandem with a concealed camera to
internet banking. It notified that over 50,547 banking frauds capture and record PIN entry details.
occurred in the SCBs that resulted in a loss worth of Rs.
145.08 crore in the last fiscal. According to the RBI, the total EFTPOS Skimming: Electronic Fund Transfer at Point of
number of banking frauds, including cyber, detected in all Sale. A foreign device is implanted into an EFTPOS machine
the SCBs are 59,826 and the loss incurred is around Rs. that is capable of copying and capturing card and PIN details
67,432.26 crore. More than 4,269 frauds occurred due to processed through the machine. A compromised EFTPOS
insiders in the banks, involving Rs. 1,014.97 crore loss during terminal can only be detected by a physical inspection.
the period, RBI added.
Cracking: Cracking includes gaining illegal entry into a PC
Techniques of online banking frauds system. Nowadays, the Cracking of IP addresses is very
universal as it permits the crackers to imagine a fake online
The following are some types of fraud are taking places in
the recent time; these frauds mostly are performed by character and carry out illegal dealings exclusive of using
his factual individuality.
internet.
Phishing: A person's personal details are obtained by
Identity theft: A large number of identity theft crimes
fraudsters posing as bankers, who launch a site similar to
occur over the internet. Criminals can get a hold of your
that of the person's bank. They are asked to provide all
personal information about themselves and their account personal information through your computer and then set
up fake bank accounts or take put loans in your name.
to the bank on account of database up gradation. The
number and password are then used to carry out
transactions on their behalf without their knowledge. Fraud Risk Management:
There is need for a proper and comprehensive fraud
Spam: Spam is an electronic 'junk mail' or unwanted governance standard. The fraud risk management and fraud
messages sent to your email account or mobile phone. They investigation must be owned by the banks itself.
may try to persuade you to buy a product or service, or visit
The following are the some ways of fraud risk
a website where you can make purchases; or they may
attempt to trick you into divulging your bank account or management.
credit card details by clicking on some links provided in the Every banking company must maintain strong
spam mail. "Transaction Monitoring Team". The role of transaction

BANKING FINANCE | MAY | 2020 | 39