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How to deal with a card fraud

Make sure you type the address of the bank rather than use a hyper-link and make sure there is an 's' at the end of the 'http' as in 'https' which denotes that it is a secure site

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The worst ever security breach of financial data in India involving 3.2 million debit cards has brought the issue of cyber-security into the open. While banks and financial institutions beef up their security systems, there is a lot that individual customers can do to protect themselves from turning into sitting ducks for hackers.

First things first. Have you changed the ATM pin of your debit card? If not, you are keeping yourself open to a cyber-attack that could result in a financial loss resulting from the malware infection of the bank systems. As an additional safety measure, it may be advisable to replace your debit card, say experts. But this would entail a 2-7 day wait for a new card.

Incidentally, while the customers have little control over a cyber-attack on the bank systems, there is a lot they can do to ensure the safety of their financial information. "Customers should change their ATM pins and passwords at regular intervals. They should avoid using the same pins or passwords for all the cards or accounts. Also, avoid very easy passwords like 1234 or 'password'. Be a little creative and make it difficult for hackers,'' says Tarun Bhatia, managing director, investigations and dispute practice, Kroll.

Incidentally, very often customers are guilty of sharing vital information with hackers. "Our studies reveal that four out of five times, it is the customer who unknowingly shares the information with the hackers,'' adds Bhatia. A few simple precautions would ensure that you do not fall prey to hackers. For instance, make sure you type the address of the bank rather than use a hyper-link and make sure there is an 's' at the end of the 'http' as in 'https' which denotes that it is a secure site.

Anand Aras, CEO, BCSBI (Banking Codes and Standards Board of India) advises that "in case of online transactions it is always advisable to use one-time-password (OTP) as the bank will provide details only on the registered email-id/ mobile phone, restricting fraudsters in using the password/PIN.''

One issue in the minds of the customer is whether the bank will compensate for the losses suffered by customers due to cyber-attacks. "The primary responsibility of the customer is to report the loss, theft or unauthorised use of his/her PIN or card as soon as he gets to know about it. The customer will remain liable for misuse and fraudulent activity until the time the bank has been notified, so they must be proactive. Once the bank has been informed, the customer will no longer be responsible for any fraudulent banking transaction, provided he/she has not acted fraudulently or negligently. If the customer incurs a direct loss due to a security breach on the bank's end, the bank is supposed to reimburse/compensate for the customer's loss,'' says Aras.

Many banks have become more alert to the dangers of a cyber-attack and have instituted processes proactively to prevent misuse of customers' sensitive information by fraudsters and to make customers more vigilant about illicit transactions, if any. "Alerts in the form of SMS are sent to customers by the bank to check their transactions for any suspicious activity,'' says Narendra Kabra, general manager, information technology, Bank of Maharashtra.

Self-defence is critical to ensure the safety of your finances. Make sure you are aware of Phishing and other methods used by hackers to avoid being duped.

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