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Bank frauds rise to record Rs 1.13 lakh cr in H1 FY20

Monday, December 30, 2019, 9:03 AM

Bank frauds rise to record Rs 1.13 lakh cr in H1 FY20

Frauds reported by banks during the first half of the current fiscal touched an all-time high amount of Rs 1.13 lakh crore, owing to delay in detection by lenders, according to an RBI report. This involved 4,412 fraud cases of Rs 1 lakh and above, as per the report. In FY19, banks had reported 6,801 cases of fraud involving Rs 71,543 crore. "An analysis of the vintage of frauds reported during the FY19 and H1 FY20 shows a significant time-lag between the date of occurrence of a fraud and its detection," RBI's Financial Stability Report said. The amount involved in frauds that occurred between FY01 and FY18 formed about 90.6% of the frauds reported in 2018-19 in terms of value.

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What happens if your money is stolen inside the bank?

Friday, December 6, 2019, 5:54 PM

What happens if your money is stolen inside the bank?

What happens if your money is stolen inside the bank? Many times we visit banks to deposit cash. ...

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You can secure your SBI account by setting a high-security password

Thursday, December 5, 2019, 5:37 PM

You can secure your SBI account by setting a high-security password

As the number of people using online transactions is high, bank frauds are also on the rise and a lo ...

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Servers of banks vulnerable to hacking too, say experts

Wednesday, December 4, 2019, 10:32 AM

Servers of banks vulnerable to hacking too, say experts

If you thought servers of banks were impervious to hacking, get ready to be surprised. While banks normally try to shirk any responsibility in incidents of cyber frauds, saying the security breach may have occurred at the customers’ end and that their servers are “protected by firewall”, cyber experts say even their servers are vulnerable to hacking. They say fraudsters are known to use online banking links to deliver ‘Trojans’ for collecting the details of account holders. According to officers, ‘Trojans’ are planted and enter the computers of users when the devices are connected to the internet. They keep running in the background without the users’ knowledge and can steal identification credentials of users, including passwords. “Fraudsters use emails, WhatsApp messages and online games to plant a ‘Trojan’ on a computer or a mobile phone. Even servers of the banks are used to deliver ‘Trojans’ in the computers of the account holders. Though the bank servers and computers are protected by anti-virus and firewall, hackers find new ways to breach them and plant malware,” says cyber security expert.

Scam Alerts

 
Over Rs 12 Crore Stolen From AIIMS Bank Accounts, SBI Alerts Its Branches

Monday, December 2, 2019, 11:23 AM

Over Rs 12 Crore Stolen From AIIMS Bank Accounts, SBI Alerts Its Branches

The country's top medical institute AIIMS fell prey to a banking fraud as over Rs 12 crore has been stolen from its two bank accounts with the State Bank of India by allegedly using "cloned cheques" over the past one month, official sources said. The money has been siphoned off from the bank accounts AIIMS has with State Bank of India (SBI) from its non-home branches in other cities. Even after the fraud came to light, attempts were made to illegally withdraw over Rs 29 crore allegedly using cloned cheques from SBI's non-home branches located in Dehradun and Mumbai in the last one week. However, the attempts were foiled. According to an official, cheques presented at SBI's branches passed UV ray tests, and in most of the cases, the original cheque leaves with the same series were still with the institute.

Scam Alerts

 
Banks can’t make customer pay for fraudulent online transaction: HC

Thursday, October 17, 2019, 10:43 AM

Banks can’t make customer pay for fraudulent online transaction: HC

The Kerala High Court on Wednesday said banks cannot recover the money withdrawn through fraudulent online transactions from cash credit and overdraft accounts of customers if it cannot be unequivocally proved that the customer was responsible for such transaction. In cases where frauds are established, banks will have to approach a civil court to recover the money from the persons responsible, the High Court said. However, if the loss is due to the customer’s negligence, she/he would have to bear the entire loss. To what extent the customer can be made responsible for such negligence is a matter of probe and adjudication through a civil suit, the HC added. The court issued the order on a petition filed by two businessmen from Kochi who lost `16.25 lakh and `23 lakh from their cash credit and overdraft accounts through fraudulent online transactions. The online thefts were committed by the fraudsters after obtaining a duplicate SIM card of the businessmen’s mobile phones, using their fake identity cards.

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RBI imposes penalty on Syndicate Bank and Lakshmi Vilas Bank

Wednesday, October 16, 2019, 11:21 AM

RBI imposes penalty on Syndicate Bank and Lakshmi Vilas Bank

The Reserve Bank of India has come down strictly on two banks for non-compliance of its directives and imposed monetary penalties on them. The banks are Lakshmi Vilas Bank and Syndicate Bank and the fines imposed on them are Rs 1 crore and Rs 75 lakh respectively. Explaining why this penalty is being imposed, RBI says Lakshmi Vilas Bank failed to comply with certain provisions of the directions issued by it on ‘Income Recognition and Asset Classification (IRAC) norms. The detection of the violation came about through the inspection of the statutory books maintained by the bank and the violations pertains to the financial year ended March 31, 2017. The reason the other entity, Syndicate Bank, received the order from RBI imposing a Rs 75-lakh penalty was its failure in adhering to the RBI regulations in the areas of (i) frauds classification and reporting and (ii) innovative housing loan products – upfront disbursal of housing loans.

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What to do if you are a victim of bank fraud?

Friday, September 20, 2019, 12:45 AM

What to do if you are a victim of bank fraud?

What to do if you are a victim of bank fraud? As the number of people having bank account rises, bank frauds too increase. When compared to last ye ...

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9 Common Phone Scams in 2019

Monday, September 9, 2019, 5:47 PM

9 Common Phone Scams in 2019

9 Common Phone Scams in 2019 Gone are the days when phones were used only by a few people, now almost everyone has mobile phones. Apart from making ...

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ATMs might soon place 6-12 hour gap between cash withdrawals: Report

Tuesday, August 27, 2019, 3:38 PM

ATMs might soon place 6-12 hour gap between cash withdrawals: Report

The Delhi State-Level Bankers' Committee (SLBC) has suggested keeping a window of 6-12 hours between cash withdrawals to prevent frauds, according to a report by The Times of India. "A lot of these frauds happen at night, from around midnight to early morning. A bar on transactions for a certain period can help," said Mukesh Kumar Jain, the CEO of Oriental Bank of Commerce and the Delhi SLBC convener, told the publication. One-time password (OTPs) for cash withdrawals, similar to the kind used for card transactions online, are also being considered, Jain told The Times of India. Another measure being evaluated is a centralized monitoring system with a two-way communications system, the report said.

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