10 Safety Steps to Safe E - Banking..

10 Safety Steps to Safe E  - Banking..

By Ashish Pai

Net banking might have made life easier. but, it can turn out to be a nightmare if one is not careful enough

Mr. Rajesh had been to a tourist spot during an extended weekend holiday. He had a nice time with his family until his wallet was picked. The wallet contained Rs. 10,000,  2 debit cards and  2 credit cards. He had also kept his net-banking passwords in the wallet. He had a tough time, as he was exposed to the risk of losing money through a wrongful swipe or /  net transfer.

Fortunately, his wife was a banker &  guided him through the process to protect his money. Many of us might have gone through such an ordeal.

We are exposed to an E (electronic) risk which is much bigger than the loss of hard currency.

Net banking, plastic cards & mobile payments are convenient banking tools that allow one to spend on the go.

However, you need to segregate &  protect the data used for virtual banking -

the debit card PIN,

netbanking login ID,

login password,

transaction password,

CVV (card verification value) number of debit or credit card,

date of birth,

mobile number, etc.

In India, according to the terms & conditions in credit card contracts, the bank is not liable for any fraudulent transaction unless the customer files a report immediately.

Once reported, the card holder is no longer liable. Card frauds can range from purchases made on lost or stolen cards to phishing, identity theft, etc.

Fraudsters will also try account takeovers and identity theft. The stolen data are used for transactions where the credit / or debit card's physical presence is not required, such as online purchases.

Here are things to keep in mind while doing virtual banking:

1. Strong Passwords.. !

The password provides the access to the funds in your account.  It is essential to use strong passwords, which are a mixture of numbers and letters and do not contain details a fraudster could easily guess.

It is also essential not to record these at any place which can be accessed by others.

2. Data Protection..

When sharing data on the web or social networking sites, take care not to share too much information about yourself.

This could be misused by fraudsters for virtual banking.

3. Mobile Care..

For those who use mobile banking, always lock your phone when not using it,  to prevent unauthorised user access.

This will prevent unauthorised access to your banking account.

4. Phishing..

Be extremely cautious about any emails that appear to have come from your bank.  Never click on any link in the email that asks you to enter your security details.

No bank asks for such things through email. Also, look for spelling mistakes in unsolicited emails.

Never respond to any that say you have won a prize for a competition that you do not remember entering or that you have inherited money from a relative whose name you do not recognise.

5. Avoid internet cafes for Net Banking..

It is best to avoid using an internet cafe for net banking or online payments.

There is always a possibility of data theft.

6. Update Address and Mobile Number..

It is important to update the mobile & address details whenever there is any change.

Most banks provide SMS alerts, which can help in instant knowledge of any debit to the account.

7. Skimming or / Cloning

It is something to be cautious about, especially when travelling abroad. In this, data in your card's magnetic stripe are recorded while swiping.

 T

his information is, then, used to make duplicates. It can happen anywhere, at a fuel pump or a restaurant.

So, make sure the card is swiped in your presence.

8. Other precautions

Be suspicious of anyone who telephones or / calls at your house unexpectedly and requests banking or / personal details or / credit card information.

To make sure you have not become a victim of identity theft,  you need to keep a close check on your credit report. You can check this from a credit bureau such as CIBIL.  Keep a tab on your bank statement regularly, to make sure that there are no unauthorised or /  wrong debits.

If you notice anything suspicious, do inform your bank straightaway to ascertain whether it was a genuine payment or a fraudulent one.

9. Grievance Escalation..

The regulator has appointed an ombudsman for redressal of complaints if your bank has failed to respond satisfactorily. A bank must respond within 30 days from the date you lodged the complaint.

In case of wrongful billing, the card company should provide documentary evidence within 60 days.

If unsatisfied, the cardholder can go to the ombudsman.

There are some entities that provide a protection plan for any loss due to theft of a debit or / credit card.

10. Debit / Credit Card protection plan..

This provides insurance cover for your debit or credit cards. Suppose you lose your wallet carrying multiple credit/debit cards. There can be a huge financial burden on account of theft. The solution: Take a card protection plan.

This plan is suitable for those who use multiple credit/debit cards and are prone to losing or misplacing these. A card protection plan is designed to help you safeguard all your credit, debit and ATM cards. If you lose the card, inform the service provider, who in turn will inform all issuers to cancel the cards.

A few benefits of this service:

*    You can block all your cards by a single call.

   

* In case you lost cash along with your cards, the service provider will provide you emergency cash assistance, subject to a limit. This advance is interest-free and you need to repay it within the stipulated days.

 

*  It also provides fraud protection cover to a certain limit.

* To avail of the benefits, you need to report a loss within 24 hours. Card protection plans are available at costs ranging from Rs 1,150 to Rs 1,750, plus taxes.

* Some banks provide insurance cover from any loss due to theft or skimming. The cost may be borne by the card issuing bank or charged to the customer in case he/she opts for a voluntary cover.

           * Just like physical valuables, it is important to take care of your virtual assets. By doing so, you can protect your financial assets and avoid loss. Take care of money and money will take care of you!

The writer is a freelancer

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