In India, credit card fraud is mostly limited to the physical space. Online con jobs make up just about 1% of the total numbers here, unlike 40% in the developed world.
But, as consumers graduate to the shop-easy internet and pay with their cards, instances of fraud are bound to rise. As J Y Umranikar, additional DG, state CID, says, "(While) we don't have statistics, as access to the web increases, reported cases of card fraud will rise 20-30 % every year. And this is only a surmise based on past experience.'' Umranikar insists that in online transactions, contracts are one-sided and the customer is always held responsible in case of fraud.
Phishing, where a consumer gets a fictitious email from a fake site or blog seeking sensitive card information, is a commonly-used defrauding mechanism. To top it, "people are careless in offering their card details,'' he adds.
While consumer organisations TOI spoke to had little information about online fraud, card companies say it is increasing in e-ticketing, eshopping and the service sectors, where no physical delivery of goods is involved. Shockingly, B Madhivanan, general manager at ICICI Bank, informs that 60% of online card fraud occurs only while buying an air ticket. He says that one way out is to insist on customer identity at the time of actually boarding a flight. Indian Airlines, for instance, asks for 'a' particular proof of identity, which a consumer has mentioned in the online form, such as a driving licence or a passport. So till ID becomes mandatory across all airlines, a consumer could as well be prepared to notice an inflated card statement despite going strictly by the rulebook.
In April this year, a 26-year-old Mumbai executive keyed in her credit card number and the three-digit security code on the e-booking site of an airline. She bought a ticket for Bangalore. In July, she was shocked to find a Rs 20,000 additional credit drawn from her account. "Two tickets from the same airline were booked on two different days in June using my card,'' she says. The first was a Dwarka-Mumbai ticket for Rs 6,000, and the other, a Delhi-Dubai one for Rs 14,000. She did not get a response from her card company till August. "Then I approached the police to file an FIR. But they told me they did not know what a credit card was.'' Exasperated, she went to the cybercrime cell, which in turn asked her to first lodge an FIR with the police.
She got a cybercrime officer to speak to the police and finally got her complaint registered. On receiving a complaint, card companies say, a consumer is given a temporary credit that matches the disputed amount, and a case is resolved in a maximum of 60 days. The Mumbai executive , though, has been waiting for almost three months now. For safer transactions, an advanced card such as Verified by Visa (VbV) and Mastercard SecureCode comes in handy. Here, a consumer requires a password during a transaction to validate his identity.
But, as consumers graduate to the shop-easy internet and pay with their cards, instances of fraud are bound to rise. As J Y Umranikar, additional DG, state CID, says, "(While) we don't have statistics, as access to the web increases, reported cases of card fraud will rise 20-30 % every year. And this is only a surmise based on past experience.'' Umranikar insists that in online transactions, contracts are one-sided and the customer is always held responsible in case of fraud.
Phishing, where a consumer gets a fictitious email from a fake site or blog seeking sensitive card information, is a commonly-used defrauding mechanism. To top it, "people are careless in offering their card details,'' he adds.
| For safer online transactions * Use a secure web browser, look for an 's' after the 'http' in the web page address. * Keep your password secret. * Never send payment information via email. * Reputable merchant sites use encryption technologies to protect private data from being accessed by others during a transaction. * Monitor your monthly statements, especially after an overseas trip. * Check transactions, even the small ones, because criminals test stolen accounts by buying inexpensive items. * Investigate suspicious activity to prevent fraud * Notify your financial institution of suspicious email activity. * Only open and respond to emails that are from somebody you know. |
While consumer organisations TOI spoke to had little information about online fraud, card companies say it is increasing in e-ticketing, eshopping and the service sectors, where no physical delivery of goods is involved. Shockingly, B Madhivanan, general manager at ICICI Bank, informs that 60% of online card fraud occurs only while buying an air ticket. He says that one way out is to insist on customer identity at the time of actually boarding a flight. Indian Airlines, for instance, asks for 'a' particular proof of identity, which a consumer has mentioned in the online form, such as a driving licence or a passport. So till ID becomes mandatory across all airlines, a consumer could as well be prepared to notice an inflated card statement despite going strictly by the rulebook.
In April this year, a 26-year-old Mumbai executive keyed in her credit card number and the three-digit security code on the e-booking site of an airline. She bought a ticket for Bangalore. In July, she was shocked to find a Rs 20,000 additional credit drawn from her account. "Two tickets from the same airline were booked on two different days in June using my card,'' she says. The first was a Dwarka-Mumbai ticket for Rs 6,000, and the other, a Delhi-Dubai one for Rs 14,000. She did not get a response from her card company till August. "Then I approached the police to file an FIR. But they told me they did not know what a credit card was.'' Exasperated, she went to the cybercrime cell, which in turn asked her to first lodge an FIR with the police.
She got a cybercrime officer to speak to the police and finally got her complaint registered. On receiving a complaint, card companies say, a consumer is given a temporary credit that matches the disputed amount, and a case is resolved in a maximum of 60 days. The Mumbai executive , though, has been waiting for almost three months now. For safer transactions, an advanced card such as Verified by Visa (VbV) and Mastercard SecureCode comes in handy. Here, a consumer requires a password during a transaction to validate his identity.
Source : India Times
to add to the safer online transaction tips, its important when making a credit card transaction online, even when you are on a secure site (https://), your information can still be hijacked if you're operating on an unsecured wireless network. so don't put your credit card numbers on the internet at school, airports, wifi hotspots, etc.
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