Tuesday, September 3, 2013

Ombudsman: Careful with ATM Cards

Ombudsman: Careful with ATM Cards
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MONEYLIFE DIGITAL TEAM | 03/09/2013 05:42 PM |   
ATM cards issued by the public sector banks are highly susceptible to fraud as they are made with inferior technology, according to the banking ombudsman of Andhra Pradesh. “The cyber crime wing of the police department has been receiving 4-5 complaints every day involving impersonation and most of these cases pertain to the cards issued by the public sector banks,” N Krishna Mohan, banking ombudsman and chief general manager (CGM) of RBI, said.

According to him, starting 1 November 2013, RBI has made it mandatory for all banks to implement a second factor authentication, in which the banks need to provide another password, unique to each transaction, and to replace the magnetic strip that stores data of the customer with an electronic chip-based card. This is to protect the customer from thecard-related frauds, which generally happen when the information on the card, including the account number and the password, are stolen. About 18% of complaints reported at the Ombudsman’s office are of this nature, the CGM said.
 
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