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Fraud is a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses.

This includes: Making false statements on claims Concealing facts or events which affect eligibility for social security benefits

Misuse of benefits by a representative payee


Buying or selling counterfeit or legitimate social security cards

Total Debit /Credit Cards in India at the end of Dec-31-2012


Credit Cards 1,88,65,537 Debit Cards 31,44,36,803 Approximately 30% of the Indians have Plastic Currency. (As per RBI statistics)

Application Fraud
Lost/ Stolen Cards

Account Take Over


Internet Related Frauds Merchant related frauds

Erasing the magnetic strip


Creating a fake card

Altering card details


Skimming White plastic

Lack Of Over Sight By Line Managers


Business Pressure{meeting Targets}

Misuse Of Technology

Formal And Informal Complaint By The Victim.


Using A Fraud Detection/Analytics Tool.

According to secondary information, the average time taken to discover a fraud incident is more than six months and discovery of some of them took greater than a year.

Manual Review
Address Verification System

Card Verification Methods


Positive And Negative List

Payer Authentication
Lock Out Mechanism

Additional Authentication
Online Alerts Emv Smart Chip

Adoption Of Payment Cards Industry Data


Security Standards{PCIDSS}

ICICI Adopted Most Secured EMV


HDFC Went For Replacemnt Of Cards In Which Internal Investigation Was Missing.

SBI Installed Cameras In Atms

The details furnished by Reserve Bank of India (RBI) in respect of Scheduled Commercial Banks pertaining to frauds relating to ATMs/Debit Cards/ Internet Banking and Credit Cards is as under :

16000 14000 12000 10000 8000 6000 No. of Cases Amount (Rs in Lakhs)

4000
2000 0 2010 2011 2012

It is also important that we insulate ourselves from fraudulent activities by strengthening the fraud detection, mitigation and control mechanism through prompt identification, investigation and exchange of information. This is necessary not just for the safety of banks but also for ensuring the stability and resilience of the overall financial system and sustaining the confidence that various stakeholders have in financial systems strength and integrity -Dr Chakrabarty

Ms. Naina Bhatia


M.Com, MFM.

Ms. Roma Bhagtiani


M.A. (Eco), Diploma (HRD), Diploma (Naturopathy).

VEDANTA COLLEGE OF MANAGEMENT, VITTHALWADI, THANE, MAHARASHTRA, INDIA

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