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Bank Fraud: A digital age of Larceny



Since the pandemic began, we relied more and more on the internet and it eventually made our life more digitalized. We have become more dependent on the internet during this pandemic; hence we became more prone to cyber-attacks and online bank frauds, cyber bullying, phishing etc. As per RBI report there is an increment of 28% in cases of frauds. There were a total 8,707 cases in 2019-2020 and 1558 cases of frauds were reported between April-June 2020 amounting to Rs 28,843 crore. In 2020 RBI reported bank fraud amounting to 1.85 trillion Rs. In 2020 FTC 4.8 million reports. This data reflects that a significant amount of people is affected by bank frauds and a substantial amount was lost by people in these frauds. Online bank fraud is a criminal act that occurs when a person uses illegal methods involving an IP address and internet to rob or fraud people to steal money. It is punishable under Information and Technology Act 2008 and Indian Penal Code, 1860. Bank frauds are a very common method to steal money, even after so many guidelines from RBI and various banks and other financial institutions people are still likely to fall for such dubious acts.

Types of Bank Frauds-

Phishing

It is the most common way to defraud someone, in this fraud you receive an email, seeming to be an original mail from your bank account, or that you have won a lottery or your bank account will be deactivated permanently and in order to avail any of this when you click on the link it directly takes to an hoax website where they ask to feed your card, bank details or complete the following survey to claim your prize money. And all these personal details are used by spoofing websites to conduct fraud and steal money from your account. And sometimes when you click on such mail, they automatically install malware in your system to corrupt and steal data from your system.

Vishing

It is a method where a fraudster calls you claiming to be an official executive of a bank. They scare you by saying that your card will be blocked, you have a policy expiring soon and today is the last day to claim or sometimes they ask you to share your OTP, CVV, PIN number and once you do that, they steal the amount from your bank account.

Skimming

It is also known as payment card fraud it is executed by capturing your credit or debit card details. Some thieves install a device called a skimmer at a public automatic teller machine, a fake card stripe reader which automatically collects all your card details and stores it in itself. And later on, this device is accessed by the thieves and card details are used to make duplicate cards so that withdrawals can be made by them.

Identity Theft

Is also one of the most prevalent frauds these days and its cases are increasing sharply. Here the fraudsters steal your personal information, social security number and then get fake documents on your name and use them to apply for credit cards, bank account, pan cards etc. On your name they avail services like loan, credit, overdraft and run away with the cash and the wrong person gets blamed. On a daily basis we register ourselves on various platforms or fill out surveys where we give our identity details and give access to our google accounts. From these sources they acquire their information and then commit the said offence.  

Procedure to follow if you are a victim of Bank Fraud

If you are victim of such fraud the firstly you need to contact your bank, NBFC or a payment platform you using when defrauded, you can always connect through their 24*7 helpline and inform them immediately about such incident.

Then you can ask the officials to block your card, upi account and bank account to stop any further transactions.

Once this is done you immediately file a cyber complaint in a nearby cyber cell and if you are unable to access any cyber cell then file a normal police complaint in the nearby police station.

You can also report to CERT, a national nodal agency to respond to cyber cases.

Also keep the supporting documents like mails, call details, messages, screenshots, bank summary, ATM receipts, transaction id to corroborate your claims. According to the Reserve Bank of India’s July 2017 notification, a customer is eligible to get its full refund if fraud occurs due to negligence or deficiency of bank or third-party breach and the customer has informed the bank within three working days.

On the other hand, any fraud happens because of the customers fault, for instance the customer revealed its cvv, pin, otp etc then bank will not be liable to pay any amount.

Conclusion

People have to be extra aware of such activities, these thieves or fraudsters have become so advanced in their operation that people fall in their trap, they commit Hi-tech crimes and have a very large operation. And it becomes extremely strenuous to locate such crime as it can be committed from anywhere, these are faceless offenders difficult to identify. Never fall for messages like you have won a lottery of 10,000 Rs and the same has been deposited in your account, or scan any QR without verifying the credentials also don’t use unauthenticated websites and payment methods to conduct your purchase and payments. These offenders through websites like OLX, magic bricks or quickr pretends that they are interested in your product or property and send you a QR code to scan and the moment to scan and put your details in it and your money vanishes. Even though we have stringent laws for such offences, due to the wide scope of the internet and no territorial barriers makes it more difficult for thieves to operate conveniently and it is very difficult to recover your money once it is gone. So primarily it is the duty of people to stay aware of such Ponzi schemes.  

-By Bhuwaneshi Gupta

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