<p>Over 65% of the Indian population is less than 35 years of age; they are more adept at using paperless payment tools such as cards, net banking and mobile wallets. <br /><br /></p>.<p>They are more likely to pay for cab rides, movie tickets and groceries using their debit cards or net banking. Not just the younger generation, an increasing number of Indians are inclined to perform transactions with credit cards, debit cards or use netbanking for the same. The increase in smart phone penetration and Internet connectivity has enabled consumers to access digital payments seamlessly.<br /><br />Plastic money, or credit cards, debit cards, and smart cards have gained popularity as a preferred mode of payment as they are convenient, safer and faster way to pay for goods and services. It reduces the risk of handling a huge amount of cash.<br /> <br />The popularity of plastic money is demonstrated by the double digit increase in transactions of debit cards, 22.78%, and credit cards, 23.65%, in 2014-2015.<br /><br />What to look out forHowever, with technology comes responsibility and users need to be alert while using the instruments because of increasing number of cyber frauds, which include card cloning and card skimming besides stealing password and sim card, etc. Customers have incurred huge losses in the past on account of such frauds. As per the RBI data, 18,123 complaints pertaining to cards have been lodged with the Banking Ombudsmen for the year 2014-15, which constitutes more than about 20% of total complaints received by them from customers.<br /><br />The modus operandi used by most fraudsters is to obtain the cardholder’s details by posing as a representative of the bank or some other authority dealing in cards. Sometimes they steal details i.e. card number, CVV at the point of sales when the card is swiped in the cardholder’s absence and the customer inadvertently punches the password openly. Besides such details are also stolen when the customer innocently discloses CVV number, One Time Password (OTP) and personal information like email address and date of birth to carry out online purchases. <br /><br />Another common ploy is ‘credit card cloning’, or ‘skimming’, is a technique whereby someone obtains your credit card details, copies them onto a fake card and begins using the credit card. In skimming, a fraudster places a camouflaged counterfeit card reader in the ATM machine which then records the data on the credit, debit or ATM, as it passes through the skimmer.<br /><br />However, technology has enabled banks to stay ahead of fraudsters and their ilk. Banks today are replacing their magnetic stripe-only cards with chip and PIN cards because the latter protects against counterfeit (skimming) card fraud. Meanwhile, customers must restrict the use of their cards only to trusted ones and never write or record their PIN, password or other security information in their mobile phones or otherwise. Customers must avoid falling prey to fictitious offers/ lottery winnings or remittance of cheap funds in foreign currencies. <br /><br />All banking customers have the right to know the MITCs i.e. Most Important Terms and Conditions of ATM/ debit card, mobile banking and net banking. In case the card is misplaced or the security information is leaked, the respective banks must be notified so that immediate steps can be taken to prevent the card from being misused. <br /><br />Also, the liability upon misuse is capped as per provisions in the Banking Codes as long as the card holder has not acted fraudulently or negligently; or has not contributed to the unauthorised use of his card.<br /><br />In addition to the above safeguards, treating customers fairly (TCF) is the defining purpose of the ‘Code of Bank’s Commitment to Customers’ developed by the Banking Codes and Standards Board of India and accepted by Member Banks. <br /><br />The Codes provide protection to customers and explain how banks are expected to deal with customers and protect their interests while dealing with evolving forms of payments and during disputes.<br /><br />The BCSBI codes protect the customer by creating a secure environment for transactions through internet and mobile banking. <br /><br />In today’s day and age where information is power, it is the customer’s prerogative to ensure that their information and data is safeguarded. <br /><br />While it is fair for customers to rely on their banks and other financial institutions, being informed of how best to protect one’s financial details, and by extension, financial security is always a plus.<br /><br /><em>(The writer is CEO at Banking Codes and Standards Board of India (BCSBI)) </em><br /></p>
<p>Over 65% of the Indian population is less than 35 years of age; they are more adept at using paperless payment tools such as cards, net banking and mobile wallets. <br /><br /></p>.<p>They are more likely to pay for cab rides, movie tickets and groceries using their debit cards or net banking. Not just the younger generation, an increasing number of Indians are inclined to perform transactions with credit cards, debit cards or use netbanking for the same. The increase in smart phone penetration and Internet connectivity has enabled consumers to access digital payments seamlessly.<br /><br />Plastic money, or credit cards, debit cards, and smart cards have gained popularity as a preferred mode of payment as they are convenient, safer and faster way to pay for goods and services. It reduces the risk of handling a huge amount of cash.<br /> <br />The popularity of plastic money is demonstrated by the double digit increase in transactions of debit cards, 22.78%, and credit cards, 23.65%, in 2014-2015.<br /><br />What to look out forHowever, with technology comes responsibility and users need to be alert while using the instruments because of increasing number of cyber frauds, which include card cloning and card skimming besides stealing password and sim card, etc. Customers have incurred huge losses in the past on account of such frauds. As per the RBI data, 18,123 complaints pertaining to cards have been lodged with the Banking Ombudsmen for the year 2014-15, which constitutes more than about 20% of total complaints received by them from customers.<br /><br />The modus operandi used by most fraudsters is to obtain the cardholder’s details by posing as a representative of the bank or some other authority dealing in cards. Sometimes they steal details i.e. card number, CVV at the point of sales when the card is swiped in the cardholder’s absence and the customer inadvertently punches the password openly. Besides such details are also stolen when the customer innocently discloses CVV number, One Time Password (OTP) and personal information like email address and date of birth to carry out online purchases. <br /><br />Another common ploy is ‘credit card cloning’, or ‘skimming’, is a technique whereby someone obtains your credit card details, copies them onto a fake card and begins using the credit card. In skimming, a fraudster places a camouflaged counterfeit card reader in the ATM machine which then records the data on the credit, debit or ATM, as it passes through the skimmer.<br /><br />However, technology has enabled banks to stay ahead of fraudsters and their ilk. Banks today are replacing their magnetic stripe-only cards with chip and PIN cards because the latter protects against counterfeit (skimming) card fraud. Meanwhile, customers must restrict the use of their cards only to trusted ones and never write or record their PIN, password or other security information in their mobile phones or otherwise. Customers must avoid falling prey to fictitious offers/ lottery winnings or remittance of cheap funds in foreign currencies. <br /><br />All banking customers have the right to know the MITCs i.e. Most Important Terms and Conditions of ATM/ debit card, mobile banking and net banking. In case the card is misplaced or the security information is leaked, the respective banks must be notified so that immediate steps can be taken to prevent the card from being misused. <br /><br />Also, the liability upon misuse is capped as per provisions in the Banking Codes as long as the card holder has not acted fraudulently or negligently; or has not contributed to the unauthorised use of his card.<br /><br />In addition to the above safeguards, treating customers fairly (TCF) is the defining purpose of the ‘Code of Bank’s Commitment to Customers’ developed by the Banking Codes and Standards Board of India and accepted by Member Banks. <br /><br />The Codes provide protection to customers and explain how banks are expected to deal with customers and protect their interests while dealing with evolving forms of payments and during disputes.<br /><br />The BCSBI codes protect the customer by creating a secure environment for transactions through internet and mobile banking. <br /><br />In today’s day and age where information is power, it is the customer’s prerogative to ensure that their information and data is safeguarded. <br /><br />While it is fair for customers to rely on their banks and other financial institutions, being informed of how best to protect one’s financial details, and by extension, financial security is always a plus.<br /><br /><em>(The writer is CEO at Banking Codes and Standards Board of India (BCSBI)) </em><br /></p>
