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ET Wealth Wisdom Ep 24 (ET Online)

Banking safeguards for you

05:24 Min | September 17, 2019, 5:17 PM IST
This week we talk about the safety measures you should take while banking electronically to prevent frauds.
Hey, what happened to that friend of yours who lost Rs 10,000 from his bank account? Did he get it back?

Nope, poor guy

Yeah.. poor guy indeed

You know it is getting rather scary how the more we do everything online, the more we are prone to fraudsters and scamsters out to steal our money

Tell me about it.. there was a story a few months ago that said that over 900 cases of fraud related to debit/credit cards and internet banking, involving amount of Rs 1 lakh and above, were registered during April-September 2018

Oh ya this what the then Minister of State for Electronics said in a written reply to the Lok Sabha.

This is why it is never the wrong time to talk about the safety measures you should take while banking electronically
That is true

Hi everyone I am SM and I am TJ, and today in our ET Wealth Wisdom podcast we tell you about the checks you can put in place to prevent frauds.

Mind you, these measures might sound pedestrian and simple, but if you do not follow them, a 14-year-old sitting in Russia could steal your money from your bank account

Online banking checks

Memorising a password is a task… but it is a must

Yup memorise your Net banking password and don't divulge it to anyone or even write it down anywhere.

Only access your Net banking account from a known computer with a secure network. Don't carry out Internet banking from a public computer or an unsecure network.

Use the hovering digital keyboard to key in login details instead of the computer keyboard.

And lastly, logout after you use it

Credit and debit card checks

It is important to track credit and debit card transactions. Setting SMS or email alerts will help you get notified about any transactions carried out on the cards.

Cheque book checks

Cheque books should always be kept in a secure place. It is risky to keep signed cheques in the cheque book, or issue a signed cheque without writing other details to any person. Record details of cheques issued on the recording slip, so you can reconcile the same with bank records.

Safe mobile banking

Last year there was a report by global information technology security company, Sophos Labs, where it said that the data of about 160, 000 people were compromised due to fake banking apps on Google Play Store. These fraudulent apps have been primarily targeting the users of seven banks-State Bank of India, ICICI Bank, Indian Overseas Bank, Axis Bank, Bank of Baroda, Yes Bank, and Citibank.

This is why one of the main things you should do to make sure that you download the right app Make sure you download only official apps from Google Playstore and the Apple app store and not from any third party website and don't share confidential details on those websites/apps

And please, please don't share sensitive information like MPIN and OTP. Also, secure your phone itself with a password, and when changing handsets do scrub out all the information on the old phone

And if you do fall victim to a banking fraud this is what you should do

Report it to the bank or card issuer within a week. After blocking the card, you should lodge a formal written complaint with the bank, along with documentary evidence, such as statements and SMS alerts received about the suspicious transaction. A police complaint should also be lodged, which can then be forwarded to the cyber crime cell.

RBI has also laid down rules with regards to the customer's liability in case of banking frauds

If the fraud happens and the bank is not at fault and it was committed by a third-party, i.e., through scamming, phishing etc, the RBI rules says that the customer is not required to pay if the breach has been reported within three days of the fraudulent transaction.

But if you report it after three days and within seven days, then the per transaction liability of the customer will be limited to the transaction value or an amount set by the central bank, whichever is lower.

And, if you take more than seven days, "the customer liability shall be determined as per the bank's Board approved policy," says the RBI notification.

Okay so you have report the fraud within a week, what about the bank? How long will they credit my money back?

After informing the bank, banks have to resolve the issue within 90 days. Banks have to credit or reverse the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer.

So, take these precautions while banking electronically. And if you slip up still, make sure you report the fraud well in time to the bank

So safe banking everyone. Until next week, that will be all from us for this week. Visit etwealth.co for all the personal finance news and cues. And don't forget to check out our official Facebook, Twitter, and Instagram pages.

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