What to do if you are a victim of digital banking fraud

Digital banking can be done via cards, internet banking and mobile banking–apps and SMS banking. All come with their fair share of risks. Let’s take a look at some of the most common digital financial frauds faced by individuals.

Identity theft

This is the most common way to carry out digital banking fraud. Fraudsters illegally gain access to your banking credentials and misuse it. The common ways criminals employ to do that are phishing, vishing, and malware attacks. Phishing is essentially spamming individuals with fake emails to collect information. People must be prudent to not click on unknown links or share their banking details via email or any instant messaging app, SMS, voice notes, Skype etc. Such links often come through SMSs and is called Smishing. When one clicks on those links, usually a malware program is downloaded on the phone which steals data that is further used for theft.

Vishing is another method employed by unscrupulous elements where individuals pose as banking officials and call people asking their banking credentials with convincing arguments. These individuals are often able to dupe hundreds of people, many of them who are well-educated and informed.

Malware attacks is when a malware program infects your phone or computer and steals your data. This is very hard to track and it is always advised to not visit unknown websites, download or install unverified apps, always browse on systems secured with antivirus and firewalls etc or abstaining from connecting your personal device to a public network.

As mobile banking has become more popular in India, issues like malware, SIM swaps, etc have increased according to a 2014-15 report of Pricewaterhouse Coopers Pvt Ltd on banking fraud.

Mobile banking, which is gaining appeal due to its convenience comes with several concerns as well. Banking fraud via sim swap is a reality. It is also hard to stop as fraudsters carry out identity theft, then get your current SIM blocked and purchase duplicate SIMs from service provider outlets using forged ID proofs. The OTPs are then received on that SIM and it is then used to carry out financial transactions in your name.

What to do after banking fraud?

–You should get in touch with your bank immediately, and get all your cards hotlisted or change your login credentials immediately. Take a complaint reference number and follow it up.

–The cyber crimes unit run an online fraud and banking fraud cell. If you are a victim of such a fraud, you should immediately approach the cyber cell and file a detailed complaint.

–You should put in a written complaint with the bank, mobile service provider, mobile wallet company, third party vendor or any other party you expect could’ve been the route of the fraud.

–Follow up with your complaints. Generally, if banks lose your money through procedural lapses, they will restore it to your account in a few days. But in cases of fraud, the process can be protracted and you need to pursue it diligently.

–If the bank/wallet company doesn’t cooperate, you can always take the legal route and file a case in the appropriate forum to get some form of judicial relief.

–Make sure you keep all the correspondence with the other party on official written record. This counts as evidence in court.

–You can take the help of an ombudsman if your case is dismissed within a period of 30 days.

–If the ombudsman doesn’t offer relief, you can approach the RBI deputy governor who is the appellate authority in such matters.

–You should keep following up with the case’s progress with the police and if you get no respite, take the case to court.