Wednesday, 6 February 2013

About Net Banking Frauds

It tells about the different ways in which net banking frauds are committed and also informs how a person can avoid such situations.

What is net banking?

It allows you to access your bank account online. You can check account details; make purchases, print statements, pay bills, transfer funds, track purchases and schedule recurring payments through the option. Normally, the user identity is the customer identity number and a password is provided to secure transactions.

Net banking frauds

Money from one account is transferred to another using the original account holder's password and id. This can be done in various ways.


A person's personal details are obtained by fraudsters posing as bankers, who float a site similar to that of the person's bank. They are asked to provide all personal information about themselves and their account to the bank on the pretext of database up gradation. The number and password are then used to carry put transactions on their behalf without their knowledge.\


There have been several causes where conmen have colluded with courier delivery boys to steal internet banking aids and passwords before it reaches the customer.


Here, personal data is stolen through hacking. The fraudster needs to be an adept cyber criminal who can steal information stored or transacted in any computer. Sometimes, a spy ware is installed in a computer to gain access to all kinds of files.


Using net banking services at cyber cafes leaves one vulnerable to data thieves.

What do the banks say?

Banks say that appropriate up gradations are carried out from time to time by their IT departments for risk mitigation. They issue instructions to the customers to manage their accounts through virtual keyboards by way of which the characters typed by them are not identified by hackers. SMS alerts are also an important tool since any transaction carried out on account is reported to the account holder through an SMS.
Securing an account
  1. Avoid online banking on unsecured systems and operate only from PCs at home
  2. Never reveal password to anyone. Do not even write it on a piece of paper or diary. Just memorize it. It should be alphanumeric and also change it frequently.
  3. Never reply to queries from bank online about account or personal details. The personal information should not be kept in a public computer or in e-mails.