Online Banking Frauds & Legal Remedies with Reference to Real Life Cases
Online banking frauds in India have been on the rise in recent years. However, the reported number of cybercrime cases is rising, especially post-Covid. The hacking of databases and the theft of passwords puts the security of online banking clients at risk. Organizations and individuals need to adopt more sophisticated cybersecurity measures to prevent them. They should also develop a culture of mandatory cyber security protocols.
Several reports of cyber online banking frauds have recently surfaced. While the cyber crime police in Chennai busted a group for stealing Rs 7.5 lakh from ATMs in the city, cyber crime police in Surat arrested a gang associated with cyber-crimes that looted Rs 5.6 lakh from a businessman’s online account. As more cybercrimes emerge, banks must protect themselves from these crimes and help individuals and organizations stay protected from such wrongdoings.
While massive data breaches at multinational corporations tend to receive the most attention, all organizations are at risk of fraud. Not only does a violation put a company’s brand in jeopardy, but it can also ruin its finances. Organizations and individuals need to hire a leading techno-legal service provider to stay protected against emerging cyber frauds. You can even get in touch with Cyberra Legal Services, a leading techno-legal service provider in the field of cyber scams and online banking frauds in India.
Various Types of Cyber Frauds in India:
Phishing in Cyber Security:
Phishing is one of the most common online banking frauds that target customers by posing as employees of financial institutions. The fraudulent actors then ask for personal information, citing various reasons for requiring it. Once the information is obtained, the fraudster can carry out a variety of fraudulent transactions and activities. As a result, customers are advised to avoid providing personal information to any unsolicited phone call, email, or SMS.
Phishing Through Emails:
Many cyber frauds in India involve email spam targeting business-class people for phishing frauds. The spammers may impersonate bank officials, e-commerce sites, or government officials to trick victims into revealing confidential information. These fraudulent emails may even ask the victim to click on a link or download a program to access their system or device. This way, the fraudsters can fetch sensitive information about your banking and finance.
Cloning of Credit/Debit Cards:
Cloning of credit/debit cards has become a regular phenomenon of online banking frauds in India. Cloned cards are often used to perform online transactions without even getting noticed. This fraud is common in rural areas and primarily targets women and senior citizens. It is also used for fraudulent online banking transactions. The cloning of credit and debit cards is a growing concern globally, especially in emerging countries like India.
Cloning of PIN Codes:
One of the common cyber frauds in India is the cloning of PIN codes. A recent scare in Mumbai saw police bust a card cloning ring for capturing card information from compromised retail outlets. In response to the fraud, the banks have recalled cards from customers. Scammers usually change a legitimate entity’s contact details to appear genuine. This way, the customers assume the fraudster is legitimate and often shares sensitive information with them.
Cloning of One-Time Password:
One-time password cloning is a common practice used by criminals to steal personal information. Usually, these fraudsters pose as bank officials and contact bank customers via phone calls. Then, they use this information to perform fraudulent transactions. However, this type of fraud is challenging to detect. Another method of cloning one-time passwords is using a mobile device to steal your identity and money from your bank account or perform an online transaction.
Legal Remedies for Online Banking Frauds
Many types of legal remedies are available to people who have been victims of online banking frauds. These include penalties, legislation, and prevention.
Victims shall take expert advise and accordingly select appropriate legal remedies under various laws such as
– RBI laws
– I.T.Act, 2000
– Indian Penal Code
– Indian Consumer Laws
Cases of online banking frauds currently going under our guidance
Currently, we are advising multiple high-profile cases of online banking frauds wherein SIM swap technique is a common element. Such cases include M/s Kandoi Bhogilal Mulchand, M/s Maklok Engineers, CityGold Group, M/s Niva Exports, M/s Vinayak Corporation, and many others.
Key Takeaways
To combat cyber frauds in India, banks must educate their customers and clients about online scams, how to stay protected against cybercrimes, and other security components of their systems. The number of cybercrimes can be reduced if these incidents are detected, and online banking frauds complaints are reported promptly. Banks should also make their customers aware of the rules and regulations of managing an Internet banking account.
Several forms of malware and spyware can attack your computer and steal your personal and business information. You should be particularly wary of malware and spyware infections and must stay cautious about internet banking fraud possibilities. Moreover, financial institutions and banks must also provide valuable publications, digital booklets, and training to their team, clients, and customers as they are good ways to promote awareness.
Stay cautious, stay alert, and keep your online banking activities as secure as possible by following the essential guidelines against online fraud. It’s always better to remain vigilant about various online banking frauds in India and how to stay protected from such wrongdoings. While staying updated about online scams is essential, you must seek professional guidance, contact Cyberra Legal Services to know more about cyber frauds in India.