Always prefer the banks recognized by the Reserve Bank of India.
Never introduce an unknown person for the purpose of opening an account in your Bank.
Never encash cheques / drafts of an unknown person through your account.
Never disclose your bank account number, user name and password to anyone.
As far as possible, bank transactions should be handled personally.
Take care of your cheque books. Do not keep signed cheques in the drawer or any place where outsiders have an easy access.
Monthly statements of your bank account should be invariably checked.
At the time of cash withdrawal, the account holder must physically check the cash. Never hand over the cash to a third person for counting.
Many crimes occur when you carry cash and valuables from your home, shop, bank in public/private transport. Following are the ways how these offenders operate:
||Diverting your attention
||Giving you false sense of security by posing as policemen
||Pick Pocketing in busy buses
Diverting attention inside the banks.
An approach to safe banking
“Social security, bank account, and credit card numbers aren’t just data. In the wrong hands they can wipe out someone’s life savings, wreck their credit and cause financial ruin.”-Melissa Bean
I. Changing trends of Indian banking system
Banking in India has come into the existence in the 18th century. Financial sector reforms in 1991 have changed the face of Indian banking sector. IT revolution had great impact on the Indian banking system. Computerization of the banking sector had led to introducing the online banking in India. The technological innovations in the services offered to the customers made Indian banks to compete with the global banks.
Compared to earlier traditional banking system, new products were introduced for the convenience of the customers. They are:
• Internet banking: Online banking allows customers to conduct financial transactions through a secure website of the bank .To perform the banking transactions a customer need to have a password and customer verification number. You can access your account balance, funds transfers, bill payments, stop payments and loan applications.
• Credit cards: Credit card is a system of payment used to borrow money for merchandise transactions and cash advances.
• Debit cards: Debit card is a kind of banking instrument and it provides electronic access to your own bank account.
• Mobile banking: Mobile banking is another banking instrument used to perform banking transaction through mobile applications.
Changing incomes, demographics and technologies are empowering customers to demand transparency from the banks. Changing technology not only given the customers greater accessibility to various services and it has also given chance to various frauds. These frauds are more in misuse of savings bank account, credit and debit card and internet banking user ID and passwords.
Phishing is a term which involves internet fraudsters by sending email messages to grab the personnel information of Internet banking, user id, passwords, credit card/debit card numbers and bank account information and other personal information. Responding to those kinds of mails or clicking on the links appearing in those mails may lead to get into those frauds.
II. Tips to protect from phishing
• Never respond to the mails asking for your password and PIN
• Never submit your account or card details to unknown persons
• Check properly the security aspects of the site before shopping online
• Secure your Internet banking password
• Never use unprotected Internet cafes and cyber cafes for Internet banking
• Never leave your PC unattended when using Internet banking
• Don’t forget to logoff your PC, when you’ve finished Internet Banking
• Never install or run the programmes from unknown source
III. Tips to protect your pin
Never take help of an unknown person at the ATM
• Protect your money
• Count your money and keep it in a safe way before leaving the ATM
• Report immediately when you lose your card
• Keep checking your monthly credit card and bank statements for any frauds.
IV. Tips to protect your savings
• Never write your PIN on ATM envelops
• Always draw a line through unused space on the cheque
• Never leave your cheque book unattended
• Never sign on blank cheques
• Don’t forget to cross your cheque whenever applicable
• Don’t forget to count the number of cheque leaves, whenever you receive a new cheque book.
V. Mobile banking and tips for safe mobile banking
Mobile banking is a latest tool to perform balance cheques, account transactions, payments and credit applications by using mobile phones. The introduction of mobile banking has discovered new ways of banking. Mobile banking users can be offered with below services:
• Mini statements
• Checking of account history
• Monitoring term deposits
• Access to loan statements
• Access to card statements
• Mutual fund statements
• Insurance policy payments
• Pension plan management
• Status of cheque
• Stop payment on cheque
• Ordering cheque books
• Balance checking in the account
• Recent transactions
• Payment due dates
• Change of PIN through online and reminder
• Blocking of last cards
Safe Mobile Banking Tips:
Never share your mobile banking PIN number with anybody
• Download your bank’s mobile app and ensure you are connecting to your bank and not to any fake site
• Download regular updates whenever they are available
• Don’t forget to inform your bank authorities about the loss of your mobile and register a new number and link it to your bank account
• Never use a public Wi-Fi for banking transactions for a secure transaction
• Disable the automatic Wi-Fi connect option in the Network Settings of your mobile device
• Ignore the messages and calls from banks, which ask for details through SMS or calls
• Protect your password and Mobile for extra safety
VI. Tips for safe internet banking
Internet banking is very convenient and time saving banking system. Follow the safety banking tips to avoid scams and online frauds.
• Collect the history of the bank and other details form the bank official website
• Protect your banking information, credit card numbers, social security numbers and personal data in a safe way
• Never respond to the mails that request information about your account details
• Be particular while choosing a password. Never choose a password with your mother name,
date of birth and last four digits of your phone and others
• Be secure about your password and other related information
• Change your password regularly to avoid scams
• Install the latest security firewalls to your browser
• Have a robust online antivirus solution
• Follow the guidelines of your bank as mentioned in their manual
• Ignore the remember password option for shopping and banking websites
• Make sure that you logout every time when you are using public computers
• Never send your account information and password details through email
VII. Tips to protect credit cards
Give your identity documents to trusted people only
• Make sure that your credit cards and other cards are safe
• Don’t forget to inform the concerned bank if you do not receive bank statements in the form of emails or posts
• Do periodical reviews of your bank statements and if you find any wrong information report bank authorities immediately for immediate action.
VIII. Tips for general safe banking
• Don’t forget to sign on the cards immediately when you receive it
• Always sign with a ball pen on your card
• Make sure you don’t forget your card after swiping at shops or restaurants
• Don’t forget to note down the card number and emergency number once you receive it
• Report immediately when you lose your card
• Don’t forget to keep a photo copy of a travel card with you
• Never write the PIN number anywhere. Try to remember it for security reasons
• Never borrow your card to anybody. You are responsible for their purchases /withdrawals with your card