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Banking Frauds: Best Practices to Save Account, Card, OTP from Fraud

Banking Frauds: Best Practices to Save Account, Card, OTP from Fraud

Banking Frauds in India. Top Tips to save guard an individual against Most Common Bank Frauds including Card Payments, Bank Account Hacking, Opening Accounts or Applying for Loan


Bank Internal Fraud Detection Unit

Every Bank in India has a Risk Containment Unit, popularly known as Fraud Containment Unit, Fraud Detection unit alias RCU, FCU etc. The 3 major goals of this department is to identify that :-

« All documents been submitted to bank for purpose of taking loan, opening accounts are authentic and genuine and submitted by the applicant himself for purpose of availing the facility

« The cheque, documents, forms, undertakings, agreement are signed by the actual applicant himself

« The document been deposited to bank is submitted by official third party representative (popularly known as DSA - Direct Sales Agent) or employee having sufficient authority to submit the document along with stamp and sign on every document been submitted.


How as Customer to Save-guard against Bank Fraud

Due Diligence and Awareness to Protect your Privacy is the key to protect Banking Frauds

« Your Identity Documents - UID Aadhaar Card, PAN Card, Passport should be due diligently be kept in your Safe. Do not release your confidential details to any unauthorized Person or Online with any Site.

If ever have to open account or apply for loan - give a Photocopy for application in Bank - do mention clearly that stated document is been handed over only for stated Loan or Account Opening Purpose.  

« Your Baking Details - Never release your existing account information, passwords or your PIN to any one. One can land himself in huge trouble if it gets accessed in wrong hands.

« OTP Password - Banks and many Wallet generally depend on OTP (One Time Password) for many of Transactions. Its highly important that you should not leave Mobile Unattended. Even if giving Mobile for Repair - do ensure to take away SIM - so that SIM Cloning can not be done. Its for your own safety to have a strong password PIN for your Mobile to prevent yourself from any Fraud - which can happen in less than 5 minutes by your own Mobile Phone.

« Signing Financial Documents -  Never ever sign the blank documents especially pages related to financial transactions. Like Places where a Loan Amount Seeked, EMI, Tenor of deposit or loan, Advance EMI and Interest Rate. Only sign when these are properly filled

« Casual Approach in Handing Card Details - Eating in Restaurant or going for Fuel Refill or Buying Grocery and making Digital Payment by Card. Ensure that the card should not be taken beyond your eyes. It should be used right then there in only and be kept in your Waller. Remember - some International Merchants can debit your VISA Card by just mentioning on Card Number, CVV and Expiry Date without any OTP. 

It may land you in trouble if someone took a pic of Front and Rear in less than 10 seconds to land you in Fraud Zone.

« Change Passwords - Keep Changing Passwords on regular basis and have them Alpha-Numeric

« Banker Asking for OTP or Card Details - Banks or Financial Institutions never ask for Complete Credit Card, Expiry Date or CVV Code and can never ever ask for OTP Password. Ensure that you never leak these details - even if a call seems to be from Bank. Rather report to Bank with a copy of Call Details, Time and Mobile Number asking for your Financial Details

« Tampering Documents - Never ever tamper the original documents by super affixing photo if its not clear or even worse by writing details on original card by pen and then taking a photo-copy. In Bank terminology - its known as a forged document and your application will most likely be rejected.

« Dealing with Freelancer or Authorized Personnel - Always deal with an Authorized agency or check credentials before entering in any or either transactions. Remember - Freelancers are never a face of any reputed organisation or bank.

« Be Careful in Signing Cheques - Never Ever give cheques without amount mentioned. Either an amount to be mentioned or line of not more than Rs. xxxxxx where xxxx to be replaced with the EMI amount. If you sign a cheque without any amount mentioned, you are by sure going to repel for consequences in future.

« Keep Photocopy of Documents signed - Last, Do not miss to keep a photocopy of the application submitted to the bank. In event of contingency - this application copy can prove to be a life saver especially where the final transaction amount mis-matches with the actual amount applied for.

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Tuesday, 23 January 2018

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