Cyber frauds increased after growth in mobile banking, NEFT and RTGS

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The number of cyber frauds in India has spiked as more people start using mobile banking, NEFT and RTGS, a recent study by PwC and ASSOCHAM states.

“Whether it’s financial transactions, customer experience, marketing of new products or channel distribution, technology has become the biggest driver of change in the financial services sector. Most financial institutions are therefore insisting on cashless and paperless transactions,” the report said.

The mobile frauds jumped from less than Rs 10 Crores in 2011-12 to around Rs 70 Crores in 2014-15.

The most common kind of frauds include documentation frauds, diversion of funds, identity theft and cyber related theft targeting customers directly. In cyber frauds the customers were cheated through site cloning, hacking, debit card scheming, social engineering and computer viruses amongst others.

“Mobile banking application being mapped to an incorrect mobile number: For bank customers who do not use mobile banking, an employee of the bank could attach an associate’s mobile number to the bank account and install a mobile application on his mobile device. The customer’s account is compromised by the associate and he or she does not get any notification about the same,” the report said.

Source: Business Insider

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