MUMBAI: Cyber crimes on debit or credit card usage have more than doubled as fraudsters evolve new cloning methods to stay ahead of banks which are improving security features with chip and pin cards, according to preliminary industry data.
The number of such crimes has increased by about 125% since a year ago, a senior official from the National Payments Corporation or NPCI, a settlement platform for e-payments, told ET on condition of anonymity.
Every month there are up to 50 cases of travelers who have used their cards in smaller towns and when they leave it gets swiped again even though they are carrying their original card, according to data provided by cyber crime experts.
“The rate of cyber crime on debit/credit card usage is tremendously rising at the national level,” said Rakshit Tandon, Director – A&R Info Security Solutions & Advisor- Cyber Crime Unit, Uttar Pradesh Police, Agra. “Awareness about security measures is abysmally low from both customers and banks. People are falling victim either of cloning or identify theft.”
On an average there are about between 40 and 50 cases compared with between 10 and 12 cases Tandon had to deal with every month two years ago.
It was not a joke played out on April 1, when Delhi’s Santosh Pandey had read six cash withdrawal texts on his mobile phone in the morning wiping out Rs 80,000 in just five-ten minutes during midnight from Navi Mumbai ATMs, the place he has not visited even once in life.
The country’s largest lender, the State Bank of IndiaBSE -0.73 %, will shortly make two security mechanisms fully operational: a one-time password or OTP and SMS card block facility with a brief narration. Besides, SBIBSE -0.73 % is set to run a media campaign on do’s and don’ts for a customer to protect the person from any cyber attacks.
“We have been running extensive campaigns to create awareness among customers and will pace it up. We are compliant to all RBI guidelines in this regard,” said SBI’s Pulak Sinha, general manager (payment solutions). The bank keeps on receiving complaints of debit card cloning, he said.
NPCI runs a system called Fraud Monitoring Solutions where 45 scenarios have been fed to detect any possible manipulation. “It will decline transactions in such scenarios. Cloning related frauds are on the rise,” said the NPCI official on condition of anonymity. But this will not trace transactions where debit cards are used within the parent bank’s ATM network.
Most of us are using debit cards encrypted with black magnetic strip on the flip side, which can easily be cloned unlike a chip-enabled card. “The entire industry hardly has one or two percent cards with chip and pin. This will not expand unless it is mandated by the regulator,” said a head of a public sector bank.
Here’s how some ploys work:
A cyber swindler typically uses skimmers, a device to take image of your cards. There are several innovative ways to use such tool. This mostly happens with travelers.
For example, a customer uses card to pay her bills at restaurants, bars, hotels and malls. Now, a person with malicious intentions, will drop her card deliberately and bent to pick it up when the skimmer planted on his shirt pocket will take images within fraction of seconds. The same image is transferred to personal computer and then, given to manufacturers to get a duplicate card.
For password, fraudsters take the help of “shoulder surfing”, where one can trace password closely observing finger movements standing just behind user’s shoulder.
Similarly, a customer leaves potential space for skimmers when he gives his card to a third party at a petrol pump to pay bills.
The most latest con game is that some glue is put below the key pad at ATMs so that the circuit does not function properly even if you press button but the ATM can read your card data once it gets swiped in the machine. Later, when you exit from ATM terminal, the prowler will immediately enter the same and remove the glue and will receive the desire access but for only one time.
Con men can also get your card data cloned from the ATM slips, which almost every user drops at dustbin without destroying it completely.
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Courtesy : Economic Times