RBI Revises Guidelines To Protect Victims Of Digital Fraud.
In cases where fraudulent transaction take place due to negligence on the part of the bank, customers will face zero liability, said the regulator.
Customers would also not bear the cost of fraudulent transactions where information has been leaked due to a breach on a third party network, provided they inform the bank about the transaction within three days.
While digital transactions have picked up, concerns around security of some of these payment methods remain, making it important for the regulator to have clear rules governing liabilities in the case of fraudulent transactions.
In cases where customers have informed the bank between four to seven days after a fraudulent transaction due to third party negligence, customers would have to bear limited liability.
In cases where fraudulent transactions have happened because card or bank information has been leaked due to negligence on the customer’s part, the entire loss shall be borne by the customer, said the regulator.
Banks may, at their discretion, decide to waive off any customer liability in case of unauthorised electronic banking transactions even in cases of customer negligence.
Banks would be required to reverse the amount debited from a customer’s account in a fraudulent transaction within 10 working days, where the lender is liable.
If the bank breaches the 90 day limit, it would have to repay the customer under the limited liability norms of the RBI.
Banks are required to provide adequate modes to report fraudulent transactions on a 24×7 basis.
RBI Revises Guidelines To Protect Victims Of Digital Fraud.
ATM fraud prevention, mobile fraud prevention: Here’s how to keep your money safe.
Here we suggest some protective measures to keep your money safe: 1) Precautions In Case Of Debit And Credit Cards: Set an unpredictable PIN and protect it: The PIN of your credit or debit card should not be easily guessable.
Two-factor authentication is a must: For online transactions, a two-factor authentication ensures notification on your registered phone number each time your card is in use.
“For PoS machines with merchants, you need to authenticate your transaction with your four-digit PIN, thus securing your transactions.
Make sure you use your cards at secure outlets and ATMs.
It can lead to stealing of personal financial information and illegal transactions.
You must shred any such documents once you are done using them to avoid identity theft.
2) Precautions In Case Of E-Wallets Phone Safety: E-wallets turn your phone into money-carrying devices.
This means that you must keep your phone in a safe place and be aware of its location at all times.
Beware of Malware: Only install apps from designated app stores for your device.
For example, if you have three credit cards with a cumulative limit of $10,000 and you’ve charged a total of $3,000 across your cards, your CUR is 30%. “So, 30% or less is good, 20% or less is better, 10% or less is best, [but] it’s not like if you do 31%, it’s horrible and 30% is fine.”
So this is one area where having multiple cards might be beneficial: If you have a large balance spread out among a few cards (for example, one with a lower or temporarily no interest rate), you might have an easier time paying it down.
Or, if you want to take a big trip, Weston adds, spreading the cost over several different cards and paying them off in full is another way to keep your credit utilization down so that your scores can continue to grow.
If you already have, pay it down as soon as possible and then consider closing it farther down the line, Malani advises.
Advertisement “We don’t really like clients to open store cards unless they are making a large enough purchase to really warrant the discount, like buying a sofa,” she says.
Not only do store cards have high interest rates, she notes, but they constantly market to their cardholders, making it incredibly tempting to go wild shopping for “bargains,” when you might not have done that if you didn’t have the card at all.
A store credit card is sometimes the first credit card that many people have, making things even more confusing.
Closing a card doesn’t have an absolute effect on your credit score, Malani says. “Losing the credit line from closing a card can be made up by requesting a credit line increase on open cards,” she notes.
How to prevent credit card fraud.
Avoid saving payment data with online retailers Often, people save payment information with online retail stores in exchange for faster checkout times.
Doing this puts them at risk of becoming a fraud victim.
Thus, when there is a security breach at a company, it is better to request a new card immediately, even if there is no suspicious activity on the card.
Instead, the purchases can be small, and this makes them hard to detect without the appropriate level of attention.
Some people also assume that banks always catch fraudulent activity.
Request a new credit card with a chip if your issuer starts updating its credit cards.
Beware of credit card skimmers A credit card skimmer is a device designed to steal information from a credit card with a magnetic strip.
These devices fit over credit card slots on ATMs and payment machines.
In the U.S., as soon as a credit card user reports suspected fraud, he or she typically becomes liable for no more than $50 of the unauthorized charges.
In a world where you can make purchases without ever standing face to face with a merchant, anonymity can often degenerate into fraudulent activity.
“Every time a transaction happens online with a stolen card, the liability (and therefore the risk) is actually on the retailer, not on the consumer.
It’s ultimately the merchant that’s both not getting paid and actually even getting fined.
This can get costly, and they have to buy a lot of data to address the issue” says Michael Reitblat, CEO and co-founder of Forter, a company that blends human creativity and experience with its machine-learning platform to accurately detect and filter out fraud for top retailers across the globe.
Unlike other fraud-security companies, whose traditional AVS (address verification system) method of determining stolen credit card or fake account information proves imprecise, Forter’s proprietary DaaS (‘Decision as a Service’) solution is so accurate that the company promises a full fraud chargeback guarantee for any fraudulent purchases that might’ve slipped through the cracks.
“Merchants lose a cumulative total of $4billion just by having to refund purchases they’ve already shipped; in other words, an average of 1.5% of all sales a company makes prove to be fraudulent, which is huge when you consider the sheer scale of competitive e-commerce.
The ultimate answer to fraudulent activity, in Reitblat’s eyes, isn’t to go for quantity—in essence removing massive chunks of shady-yet-possibly-real transactions—but to go for quality instead—that is, the precision in which you’re able to spot and eliminate fake purchasing.
If you’re like me on the other hand, you’re too busy to deeply consider what you’re buying, and you just buy the first thing you see,” says Reitblat.
The only way to construct this [understanding] is through the combination of data science looking through a history of billions of transactions, understanding cultures and a lot of complex algorithms.” And of course, since Forter uses machine-learning to stay ahead of the fraudsters, the platform is perpetually optimizing itself with every decision it makes—of which there are millions.
Credit card processing firm Vantiv agreed Wednesday to buy U.K.-based rival Worldpay for about $9.9 billion, consolidating their similar businesses to seize growing international and e-commerce opportunities.
Vantiv and Worldpay, two of the world’s largest processors of credit card payments at online and retail shops, said they have complementary products and “strong distribution channels” to serve merchants worldwide.
Worldpay, which competes with Paypal, Square and in-store transaction companies, processes about 31 million mobile, online and retail store payments per day.
Vantiv’s products include hardware and software used at checkout, such as card readers, fraud detection applications and mobile wallet verification.
The acquisition was announced hours after Worldpay confirmed that it had been approached by both Cincinnati-based Vantiv and JPMorgan Chase.
JPMorgan said it engaged in preliminary talks with Worldpay at the invitation of Worldpay.
The banking giant was “at a very early stage in considering whether or not to make an offer,” but says it no longer intends to pursue Worldpay.
Shareholders of Worldpay, which is traded in London, will receive 55 pence (71 cents) in cash and 0.0672 new Vantiv shares.
That’s about $5 per Worldpay share based on Vantiv’s closing price on July 3.
The price represents an 18.9% premium to the closing Worldpay share price on July 3.
Credit card user refuses to sign back of card, but it’s never declined: Money Matters.
My reasoning is, if I lost my card or it was stolen, why would I give someone a sample of my signature to copy?
I think issuers should go back to the photo on the card as the best means of identification.
Photos on credit cards would be a fantastic way to curb fraudulent card use.
My advice: Scribble something on the back of your cards that doesn’t resemble the nuances of your signature.
I refused to give my credit card to be kept on file.
The office called my insurance Affinity.
I did not had to give my cc info, but I was advised that if I had a different insurance I will have no other choice.
No credit card in file.
E.S., Cleveland A: I wouldn’t allow a medical provider to keep a credit or debit card on file either.
For starters, there are debit cards and there are credit cards.
With a debit card, your safety and security is not assured.
Now, let’s look at the other available option– credit cards.
Most banks and financial institutions offer clients zero-liability credit cards.
What about using credit cards online?
When shopping online, transferring money, or simply storing financial information, always use a credit card.
Whenever you are online, always use a credit card over a debit card – at least that way you can get the money back if fraud takes place.
Secure Internet networks and all devices Its been said before, but it’s certainly worth saying again: Safety and security are paramount.
Good credit card safety habits go hand-in-hand with responsible online browsing.
Perhaps the most effective way to maintain the safety and security of your credit cards is to ensure that you know exactly how your cards are being used.
Every time there’s a large credit card breach, you’ll hear some expert say risks for consumers are low, because it’s easy to cancel a credit or debit card and get a new one.
With credit card fraud, consumers call their bank, dispute a fraudulent charge and don’t pay for that part of their bill.
With debit card fraud, money is taken from the victim’s checking account, and the consumer has to argue with the bank to get it back.
Some people use debit card purchasing as a personal finance tool to limit spending.
Many merchants are now imitating Starbucks with their own digitized stored value apps.
Search “BobsWidgetSite.com and complaints,” then “BobsWidgetSite and fraud,” before making a purchase the first time.
Most credit and debit card credentials are useless without the security code numbers on the back of the card.
Don’t Give Your Credit Card Number Over the Phone This tip is similar: Never give your credit or debit card number to anyone who calls your house.
Whenever inserting your credit or debit card into any machine, it’s a good idea to look for signs of tampering.
Report Fraud Immediately If you are hit by fraud, time isn’t on your side.
In response, individuals, government, and industry developed protection mechanism to address these attacks using solutions like LifeLock, HIPAA, and anomaly reporting and prevention technologies for credit card authorizations.
The current state of the art for cyber theft is “ransomware”.
Ransomware is malicious code that blocks or limits access to applications or files until the required sum of money is paid.
The password to decrypt the files is then offered for purchase via credit card or bitcoin transaction.
WannaCry also demonstrated one of the risks associated with paying the ransom demand as there was no decryption key that allowed for recovery of the encrypted files.
For businesses, the higher value of the data and systems within the organization justify spending on additional defenses against malware and ransomware.
Next-generation firewall with malware inspection enabled evaluate each downloaded file against a known list of malicious code.
In addition to firewalls, more advanced anti-malware solutions and AI driven technologies can further improve the defenses by providing alternative methods for identifying and blocking attacks.
One of the most effective approaches available to businesses is to provide training to users on security topics.
Developing a comprehensive security plan can help ensure coverage of the current risks as well as helping to minimize the risk to the organization from unknown future attacks.