KOCHI: “The call came from Madhya Pradesh a few weeks ago,” recalls Rajiv, a native of Kochi and a victim of an attempted phishing call.
“The caller said that she was calling on behalf of State Bank of India and wanted to confirm my address to issue a new debit card, which was supposed to be safer. Even though the expiry period of my existing card was August 2018, I was glad that the bank is concerned about the safety of my account,” he added.
But the call quickly took a turn toward the suspicious. After confirming his address, the caller asked for the card number. “She even told me the last eight numbers,” recalls Rajiv. Then, he was asked for the Card Verification Value (CVV). But Rajiv received an from his bank to confirm a payment of `10,000 providing the CVV. Rajiv spooked and cut the call. “She even dared to tell me that I should not disclose CVV to anyone other than her. I smelled a rat ,” he admitted.
Rajiv is not alone. Had he disclosed the number, he might have ended up among the innocent duped that fall for phishing attempts like these every day. Rajiv contacted the bank and they confirmed that it was a fraud and, upon their advice, has applied for a new debit card.
The recent data breach brings into stark focus the danger to our hard earned money in a world of electronic, impresonal transactions. Despite the size of the breach, many have been lucky to have not lost any money. But our cards are still vulnerable to financial fraud at all times. According to the National Payments Corporation of India, illegal withdrawals linked to the data breach were limited to 641 customers of 19 banks and the total amount was a mere `1.3 crore.
But the next such lapse might be more severe and the incident is already raising concerns on the robustness of our ATM banking systems. Experts suggest that spread of biometric ATMs and extending the One Time Password (OTP) feature to ATM transactions as safety measures.
“Banks in India have introduced biometric automatic teller machines (ATMs) as it seems to be an effective way of preventing PIN theft and is also a channel to expand a bank’s reach to the rural and illiterate masses. Globally, biometric as a method of authentication gains traction,” said P G Jayakumar, Former Managing Director and CEO, Dhanlaxmi Bank.
“The biometric ATMs replace personal identity numbers (PIN) with thumb impressions. The fingerprint scanner fitted in the machine only recognizes thecustomer’s thumb impression,” he suggests.
Biometric ATMs might be safer, but the drawback is that If the account holder is bedridden and in need of money from his account he will not be able to get it as he has to present in person at the ATM. The other option is the extension of OTP precautions to ATM withdrawals.
The negative side of this ‘extra safety’ is that it is time consuming and inconvenient.
Abraham Tharian, Former Executive Director, South Indian Bank added that in order to avoid skimming the customer must ensure that the card does not go beyond his eyesight.
“The Reserve Bank is now closely monitoring the situation and in the future it will come forward with safety features in order to safer guard the interest of banking customer,” he added.
According to Jayakumar, the massive distribution of cards in the recent years has led to such fraudulent activities. He has a point as there are 69.7 crore debit cards and 2.6 crore credit cards in the country at the end of the month of July, 2016.
Safety Tips
■ Always pay close attention to the ATM and your surroundings.
■ Don’t select an ATM at the corner of a building. Use an ATM located near the center of a building.
■ It is always safe to use ATMs of your own bank. It also makes it easy to complain if you encounter any problems.
■ Chip cards are safer. So if your card is electromagnetic replace it with a chip card
■ Change PIN number every three months. Do not ever disclose numbers on the card to anyone.
■ Do your automated banking in a public, well-lighted location that is free of shrubbery and decorative partitions or dividers.
■ If you have started a transaction and notice something suspicious, cancel the transaction and take your card.
■ Be wary of people trying to help you with ATM transactions. Be aware of anyone sitting in a parked car nearby.
■ Do not allow people to look over your shoulder as you enter
your PIN.
■ Closely monitor your bank statements and balances, and immediately report any problems to your bank.