Digital payments have accelerated, particularly in the ongoing pandemic times where it has witnessed tremendous evolution as people across the country adopted varied payment methods. The rise of digital payments in the last 18-24 months has also led to an increase in the number of cyber frauds. The primary reason for the success of some of these is lack of awareness among consumers and businesses on how to keep their data and money safe.
On the occasion of Safer Internet Day 2022, here are some safety tips to ensure safe and secure digital payments and also answers to some frequently asked questions related to online fraud.
Safety Tips
Double-check QR Codes: When scanning QR codes, always check that the beneficiary is correct as hackers can easily replace a legitimate QR code used for payments with a malicious QR code that will put your banking or financial account information in danger of getting exposed.
Regularly Check Financial Statements: Ensure that you read through messages that are received after every payment and take a close look at your financial statement once a week or more. In case you spot any inconsistencies, raise a ticket, or contact the bank/payment platform immediately.
Use Two-factor Authentication: Turn on two-factor authentication when logging into accounts and applications to protect account takeovers that can lead to payment fraud. This can restrict the access to information that is needed to log into accounts. Even if the original password is leaked or stolen, only the user receives the one-time password code via SMS that is needed to log in to a digital payment app or site. This measure protects accounts from unauthorised access.
Use Unique Passwords And Don’t Share Them: Ensure that passwords for all modes of transactions are different from each other and are not easy to decipher. Avoid using names, birthdays and other such details for passwords. Passwords must never be shared with anyone and need to be changed regularly to avoid falling prey to cyber-attacks.
Avoid Using Public Wi-Fi For Transactions: Avoid using public devices or Wi-Fi networks when making online transactions since they are more prone to cyber-attacks, theft, and other fraudulent activities. A high level of protection is offered by the verified sites, so it is also important to use only reputed websites for online payment transactions.
Do Not Open Suspicious Emails Or Links: Cybercriminals have countless ways to trick users into opening an email attachment or a link that loads harmful malware onto their system. Additionally, users should also avoid giving out their personal information via suspicious web forms. Ensure that you report those emails as spam and delete them from your mailbox.
Frequently Asked Questions Related To Online Fraud
1. What to do if you become a victim of online banking fraud?
Online fraud can happen in many ways. When it comes to payment fraud, the first step for a customer to take, if there is a card involved, is to block the card immediately and change passwords of the login and linked emails. Then one must reach out to the bank and lodge a formal complaint. Upon the advice of the bank, the person might also have to lodge a complaint with the police or at https://www.cybercrime.gov.in/.
2. In case of online banking fraud, who bears the loss - bank or customer?
The safety of bank accounts, debit and credit cards lies both with the customer and the bank. Banks must have proper systems in place to alert them if any fraudulent activity or breach takes place. Customers also must be cognizant and not share any sensitive information such as passwords and OTPs with anyone. They must also check the kind of apps they are saving their cards details on and ensure that they do not use public computers and Wi-Fi.
3. What if a fraud has happened because of the customer's carelessness? Who bears the loss?
It is important for customers to not share any account-related information with anyone, not use apps that one doesn’t trust, and not use public Wi-Fi for financial transactions. It is also important to inform the bank immediately if any kind of breach or fraud in the bank account is noticed. The Reserve Bank of India (RBI) has already asked banks to ensure proper safety measures. They have also established a helpline number to report fraudulent activities or illegal transactions or withdrawals. It is imperative for banks and customers to adhere to RBI guidelines for safe digital payments and online banking to avoid getting defrauded.
The author is vice president, cyber and intelligence solutions, South Asia, Mastercard
