How can you secure yourself from Online Bank Fraud?

Since COVID-19, a lot of traction is seen in digital modes of payment. It has enabled customers to do transactions in a moment. However, it has invited numerous fraudsters to use gaps and dupe consumers in different ways.

The Reserve Bank of India (RBI) has released a booklet named BE(A)AWARE. It is in regard to spread awareness to bank customers about fraud in digital payments. The booklet throws light on the particular methods used by scamsters. Also, there are precautions a customer must take before doing an online transaction.

Let’s first know all about Internet banking fraud.

What is Internet Banking fraud?

Internet Banking fraud is a kind of identity theft or fraud executed by using online technology. The hacker use techniques such as data breaching to illegally take out money from a bank account.

Types of Internet Banking frauds

Cyber Criminals use various kinds of strategies and attack vectors to do internet fraud. This includes instant messaging and emails to spread malware, malicious software, etc.

Internet Banking frauds can be divided into several types of attacks. It includes the following:

1. Data breach:

Data breaching includes stealing sensitive, protected, and confidential data from a secure location. The hacker takes the data into a non-trusting environment without the knowledge of the account holder.

2. Malware:

It includes the use of malicious software to get sensitive and personal data. The attack disables/damages a user’s device.

3. Spoofing and Phishing:

This type of fraud includes the usage of online messaging & emails to get personal data, financial details, etc., from victims.

4. Ransomware:

It is a type of malware attack in which users cannot access critical data. The hackers demand a huge amount to restore file access.

5. Denial of service (DoS):

DoS involves interrupting an online system, network, or service traffic access for a malicious purpose.

6. Business email compromise (BEC):

It is a type of attack targeting businesses that makes wire payments. BEC includes legitimate email accounts to collect unauthorized payments. It is done via social engineering techniques.

The major question is what should you do to avoid internet banking fraud. Before that, let’s first know what are the common ways used by cybercriminals for online bank fraud.

• Fake calls as a bank employer
• Fake emails that are attached with viruses to steal financial information
• Fake emails with a site link to steal login credentials
• Clone your credit or debit card
• Scams that promise you to transfer money but take out all your data.

What should you do?

Some simple tips to avoid or protect yourself from Internet Scams are as follows:

1. Secure your account

You must avoid using unsecured Wi-fi systems for online banking. It is highly advisable that you should not write your passwords anywhere and change them regularly.

Also, if your bank asks you about your personal or account details, never share them.

2. Check the website’s URL

You must check whether the URL of the bank website is secured or not. Fraudsters can lure you to put your password and user ID at a fake site. Never do it without verifying the site.

3. Always check “last-logged”

Most of the bank websites have a “last logged” in the panel. Check it whenever you log in. If you see any irregularities on the site, change your password. You must report the matter to your bank immediately.

Apart from this, you must log out of your account from the online banking portal. Never exit from the portal by simply closing the browser.

4. Keep your system updated

Keep a regular check on security updates for your computer. It will help you to smoothly operate your system. On the other hand, the browsers will have the latest security patches installed.

You must install a personal firewall on your computer. It will protect against hackers so that they do not get unauthorized access.

5. Follow bank rules

Banks states, “The IT department checks risks by carrying out a proper up-gradation from time to time.” The customers get instructions to manage their accounts via virtual keywords. This disables hackers to identify the characters typed by them.

Other methods to secure yourself from Online Bank fraud

• Never share your personal financial information with any person. Also, to the one who claims to be an authorized bank agent.
• Subscribe to email and SMS alerts for transaction notices.
• Allow OTP for all online transactions.
• Do not use personally identifiable information, use unique passwords.
• Regularly change your internet banking passwords
• Make sure your computer has an up-to-date version of anti-virus software.
• Avoid opening links from emails that look doubtful.
• Do check the padlock symbol next to the website URL.
• Always follow bank instructions
• Do not fall prey to money offers that sound so good to be true! It includes lottery, foreigners asking you to send money, etc.
• Make sure your account is logged out if you have used public computers to carry out transactions.
• Always delete browsing history if you have carried out transactions from a public computer.

Conclusion

You can secure yourself from online banking fraud with the above-mentioned methods.

RBI states, “If there is any fraudulent transaction in your bank account, notify your bank promptly.” You can register a complaint with the cybercrime authorities or the local police.