ATM Frauds in India are increasing at an alarming rate. If we add to it the cases of Credit Card Frauds, Internet Banking Frauds and frauds committed using Phishing techniques, the numbers are really shocking.
With mobile phones being increasingly used for transactions, instances have been reported of fraudsters intercepting one-time passwords by obtaining duplicate SIM cards. The ATMs need to be highly secured as cardholders are ignorant about such tricks.
The problem of ATM frauds is global in nature and its ramifications have been felt in India as well. It not only causes financial loss to banks but they also undermine customers’ confidence in the use of ATMs. It is one of the most common types of fraud but there are some measures that people who own credit cards and debit cards can take to avoid theft of their identity.
Criminals are scoring top marks for their devious ways. Statistically, card skimming is now the preferred method of ATM fraud, though it’s not only limited to the ATM environment. Skimming was once solely limited to credit cards, but the reality is that it now also includes debit cards.
The ATM fraud is not the sole problem of banks alone. It is a big threat and it requires a coordinated and cooperative action on the part of the bank, customers and the law enforcement machinery. There is thus a need to take precautionary and insurance measures that give greater “protection” to the ATMs, particularly those located in less secure areas. It is high time to revoke the Cyber Law of India as soon as possible and enact Strong and Effective Laws in this regard.
Till we have suitable and apt laws, we must apply existing laws in a purposive and updating manner.
Vinod C. Dixit