Banking Frauds in India 2013

7/27/2019 Banking Frauds in India 2013

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Fraud is a deliberate misrepresentation that causes a person or

business to suffer damages, often in the form of monetary losses.

This includes:

Making false statements on claims

Concealing facts or events which affect eligibility for social

security benefits Misuse of benefits by a representative payee

Buying or selling counterfeit or legitimate social security cards


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Total Debit /Credit Cards in India at the end of

Dec-31-2012

Credit Cards 1,88,65,537

Debit Cards 31,44,36,803

Approximately 30% of the Indians have Plastic

Currency. (As per RBI statistics)


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Application Fraud

Lost/ Stolen Cards

Account Take Over

Internet Related Frauds

Merchant related frauds


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Erasing the magnetic strip

Creating a fake cardAltering card details

Skimming

White plastic


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Lack Of Over Sight By Line Managers

Business Pressure{meeting Targets} Misuse Of Technology


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Formal And Informal Complaint By The Victim.

Using A Fraud Detection/Analytics Tool.

According to secondary information, the average time takento discover a fraud incident is more than six months and

discovery of some of them took greater than a year.


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Manual Review

Address Verification System Card Verification Methods

Positive And Negative List

Payer Authentication

Lock Out Mechanism


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Additional Authentication

Online Alerts

Emv Smart Chip

Adoption Of Payment Cards Industry Data

Security Standards{PCIDSS}


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ICICI Adopted Most Secured EMV

HDFC Went For Replacemnt Of Cards In

Which Internal Investigation Was Missing.

SBI Installed Cameras In Atms


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The details furnished by Reserve Bank of India (RBI) in respect of

Scheduled Commercial Banks pertaining to

frauds relating to ATMs/Debit Cards/ Internet Banking and Credit Cards is as under:

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012

No. of Cases

Amount (Rs in Lakhs)


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Itis also important that we insulate ourselves from fraudulentactivities by strengthening the fraud detection, mitigation andcontrol mechanism through prompt identification, investigation

and exchange of information.This is necessary not just for the safety of banks but also

for ensuring the stability and resilience of the overall financialsystem and sustaining the confidence that various stakeholdershave in financialsystems strength andintegrity

-Dr Chakrabarty


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Ms. Naina Bhatia

M.Com, MFM.

Ms. Roma BhagtianiM.A. (Eco), Diploma (HRD),

Diploma (Naturopathy).

VEDANTA COLLEGE OF MANAGEMENT,

VITTHALWADI, THANE, MAHARASHTRA, INDIA

Banking Frauds in India 2013

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