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What to do in case of Online Banking Fraud?

IamCheated.com Research Team | April 04, 2019  6:24:pm

What to do in case of Online Banking Fraud?

Online banking is getting popular each day and with the help of online banking, you can carry out various transactions like sending money to friends and family, booking tickets, paying utility bills, shopping online and much more. As online banking increases, banking frauds are on the rise. According to a survey which was carried out last year, Indians are among the most frequent victims of online banking frauds. More than 18% of Indians surveyed reported fraud and this is a higher percentage than any other country’s respondents.

Cybercriminals are targeting all kinds of digital banking facilities, credit and debit card transactions and payment gateways to carry out fraud and cheat people.

See Also: How To Avoid Digital Banking Frauds?

Various Online banking frauds

1. OTP fraud

This is a very common method used by fraudsters to cheat innocent people and wipe out money from their bank accounts. Under this fraud, fraudsters pose as bank employees or customer care executives of a company and collect sensitive banking information like card number, CVV and OTP.

2. Fake Mobile Banking Apps

Under this type of fraud, fraudsters develop fake apps which look exactly like the original banking apps. If you install this app on your phone, malware can steal your bank details and wipe out money from your bank account.

3. SIM swap fraud

Under this fraud, fraudsters first collect all your personal information. Once all your information is collected, they contact your mobile operator saying the original SIM is lost and apply for a duplicate SIM card.  Once the new SIM is issued, the mobile operator will block your SIM card.

After your SIM is blocked, the fraudster will activate the new SIM on his mobile phone. Following this, it becomes easy to steal money from your bank account, as the OTP is sent to their phone.

See Also: Methods Fraudsters Use To Steal Money From Bank Accounts

4. Card Skimming

In the case of card skimming, a small electronic device called a skimmer is used to steal your card information. The skimmer is usually installed in the POS machine or ATM. When a card runs through a skimmer, the device captures and stores key information from the magnetic strip of your credit/debit card. This information is later copied to a blank card and used to wipe out money from your bank account.

What to do in case of Online Banking Fraud?

Most people are still not aware on what has to be done in case of online banking frauds. So, in this blog, we will discuss what you need to do when you face online banking fraud.

Report to the bank immediately

In case you are a victim of online banking fraud, you must report it to the bank immediately. You can call the customer care number of your bank and report the issue. Don’t simply call up the number which comes up on Google; instead, you must visit the official website of the bank and collect the number.

As a bank customer, it is your responsibility to report to the bank immediately on any fraudulent banking transactions, even if there is no fault from your end.

Who will bear liability in case of online banking fraud?

@ In case the fraudulent transaction has taken place due to a deficiency on the part of the bank, then you don't have to worry about the loss, as the bank is liable to bear it.

@ In case the fraudulent transactions have taken place due to your negligence, then the entire loss has to be borne by you, until you report the fraud to the bank. So it is advisable to report the fraud at the earliest.

@ If the fraudulent transactions have taken place due to a fault in the system and not because of the bank's or your fault, your liability will be zero if you report it to the bank within 3 days.

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