Saturday, 30 November 2013

Ahmedabad Borrowers Have Better Credit Score: CIBIL Study

The study also indicates that credit card penetration is very high in Ahmedabad as compared to other cities in the country
 
While credit cards and personal loans being the most availed form of credit in Ahmedabad, the borrowers from the city have higher chances of getting loans as they have better credit scores, revealed a study conducted by credit information companyCredit Information Bureau (India) Ltd (CIBIL).
 
The study also indicates that credit card penetration is very high in Ahmedabad as compared to other cities in India. Credit cards (34%) and personal loans (21%) are the most availed form of credit in Ahmedabad. Credit card and personal loan penetration in Ahmedabad is higher as compared to the pan India average.
 
According to the study borrowers with a credit score of 700 and above have a higher chance of getting their loan and credit card applications approved by banks. "More than 80 per cent borrowers in Ahmedabad have a CIBIL TransUnion Score greater than 700. Hence they have higher chances of getting loans or credit," said Harshala Chandorkar, senior Vice President - Consumer Relations, CIBIL.
 
Talking about other finding of the sample study Chandorkar said, "CIBIL data also indicates that more than 90 per cent of new credit is sanctioned to borrowers above a score of 700. Banks and financial institutions today consider the score as a crucial parameter before sanctioning any new loan."
 
The state of Gujarat has 52 per cent credit applicants who are less than 35 years of age as compared to the national average at 49 per cent.
 
Speaking about increasing consumer awareness on CIBIL she added, "We have seen a significant growth in consumers reaching out to us for their own credit reports and scores from across metros as well as Tier II & III cities. There has been more than 200 per cent growth since the time we launched our Consumer Relations operations in 2009."
 
CIBIL is India's largest credit information company that maintains information on over 305 million consumer trades and 15 million commercial trades.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : Business Standard

Wednesday, 27 November 2013

Mumbai ATMs Skimmed: How To Protect Yourself From Fraud

According to the report the police have said that a minimum of 36 people have lost money, due to card-skimming at various ATMs in Mumbai. At least six ATMs across the city were compromised as a foreign tourist is supposed to have attached skimmers to these machines. 
 
These ATMs are located at Shivaji Park, Dadar, Worli, Sahar and Colaba, crowded prime locations in Mumbai. The police have no idea as to how many might have already been defrauded. Scarier part of the news is that they don’t even know how many more ATMs might have been compromised. So the next ATM your visit can be one of these. Read the full Hindustan Times report here. 
 
What is skimming: Simply put, skimming is when fraudsters get access to your personal or account information from your credit or debit card. This information is stolen from the magnetic strip on the back of your card, this strip has your data stored.
 
Skimming can happen in two ways: At the ATMs and at restaurants. At the ATMs, fraudsters insert a device to the ATM card slot. So, when you punch your PIN, the device captures the number and also other information stored on the magnetic strip of your card. The data is then wirelessly transferred to the fraudsters who uses the data to make cloned cards and withdraw cash at overseas ATMs, or shop online. At restaurants and shops, the card is swiped on the skimmer (to collect data) and then the card or electronic data capture machine to make a genuine charge. But only employees of the shop or restaurants can do so. Skimming through ATMs is by far more dangerous. 
 
What you can do: There are a few things you could do to prevent yourself from falling prey to this. First, look closely at the card slots in the ATMs. Ensure that there are no parts jutting out, or any broken pieces, or cracks or any glue like substance around the slot. It’s a good practice to cover the hand while punching your PIN on the key. You can do this even with the other hand. That way, even if a small camera is attached near the card slot, it won’t be able to capture your PIN. Check your account statements to see for any discrepancy in billing. If you won’t do this, you may not even know you have been a victim of such a fraud if the amount taken away is not too big. And finally, if the door of the room where the ATM is situated its broken, simply go to another ATM. It’s better to be safe than sorry.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS Identity shield helps individuals to prevent from being a victim of Identity theft, Cyber crime, etc. 

Courtesy : First Post 

Tuesday, 26 November 2013

Good Credit History And Credit Score Could Mean Better Lending Rates

As per The Economic Times report more and more prospective loan borrowers are seeking their credit report from authorized agencies. The sentiment has prevailed as consumers are understanding the fact that a better credit history enables them to negotiate better loan rates with the lending institution. Also, the interest in getting the credit score on part of the prospective customer is said to have a direct co-relation with the penetration of banking in a partial area. Confirming the stance MD of Experian Credit Information of India was quoted in The Economic Times report saying "Consumer interest in going for credit scores is directly co-related to banking penetration in a particular geography."
 
Institutions rendering credit history report come up with the report and hence the creditworthiness of individuals with no prior borrowing record by analyzing and evaluating credit card transactions. Of late, such institutions suggested an increase in applicants from Tier-II cities who were keen on getting their credit score. Senior Vice-President Consumer Relations of CIBIL was quoted in one of the media reports saying " We have seen a significant increase in consumers reaching out for scores and reports in metros as well as tier-II and tier-III cities."
 
The product unveiled by Credit Information Bureau of India Ltd. (CIBIL) that assesses the credit history enables loan borrowers to negotiate lending rates with financial institutions. With improved financial awareness and levels of financial literacy in tier-II cities at par with the metros (as adjudged by the consumer eductaion programme of CIBIL) consumers are increasingly comprehending the importance of good credit history and related credit score in realizing better interest rates. And further augmentation of such awareness level is likely to beneficial for both the consumers and financial services industry in the near future as more and more prospective loan borrowers will work towards maintaining good credit history.
 
How does good credit history allows you to realize competitive lending rates?
 
As per the RBI, differential pricing mode should be opted by the bank and for it some financial institutions are giving due weightage to the credit score parameter for taking loan disbursal decisions. So, until late while for a good credit score you were provided with some of the Benefits such as waiver on processing charges, banks now allow you to negotiate on interest rates depending on your credit record.
 
So, good credit history and credit score fetches competitive interest rate for the loan borrower based on the negotiation capability of the borrower. Further, the extent of rebate could be 25 basis points that can enable an individual to save considerably over the years.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : Good Returns

Monday, 25 November 2013

India Tops Cybercrime Hit List

Mumbai: India is increasingly becoming a hotbed of cybercrime and companies are finding it difficult to cope with the onslaught of online attacks, resulting in a huge loss of money and reputation, say online security experts.
 
Cyber attacks are showing no signs of abating. India was ranked among the top five countries to be affected by cybercrime, according to a 22 October report by online security firm Symantec Corp.
 
On 18 November, The Times of India newspaper said 4,191 Indian websites were defaced or hacked into in August alone, much higher than the 2,380 attacks recorded in July, 2,858 in June and 1,808 in May, citing confidential reports by the Indian Computer Emergency Response Team, or CERT-In, part of the government’s department of electronics and information technology. Most of these attacks were on “.in” domains that have their servers in India.
 
“India Inc. has not kept pace with the evolving hacker. On the business side, there are at times state-sponsored individuals getting into these acts from across the world...the risk is very global in nature,” said Sanjay Kedia, chief executive and country head of Marsh India Insurance Brokers Ltd, which offers cyber risk insurance services.
 
tly by Marsh India Insurance Brokers, said companies that aren’t properly prepared to guard themselves against online attacks would have to pay a heavy price.
 
Indeed, the average cost per cybercrime victim in India increased to $207 (around Rs.13,000) in 2013 from $192 a year earlier, Symantec said in its report. Globally, the cost rose 50% from a year ago to $298 in 2013. Loss of client information is the biggest cost involved, according to Valerie Bowles, chief operating officer at law firm Amarchand Mangaldas.
 
“One is the direct cost which we see, but the implication of indirect cost will be much bigger, as in this well-connected world, information travels very quickly, and that compounds impact. The loss due to reputation could actually compound the losses to a great extent,” said Kedia of Marsh India Insurance.
 
According to Diwakar Dayal, head of the security business at Cisco (India and SAARC), given that the Internet is an “extremely dynamic environment, in terms of both topology and design, it makes it that much more vulnerable to exploits”.
 
Cybercriminals are becoming increasingly sophisticated and their attacks more difficult to predict and stop, especially with the emergence of corporate trends such as bring- your-own-device, social media and the advent of cloud computing (making services available over a network), he added.
 
Experts say companies need to be more proactive about cyber security.
“Enterprises should look at adopting solutions which can help them get real-time visibility and control of the situation... Clearly, multiple audits are the order of the day as the paradigm of security is moving from mere device safety to protection of data/information/intellectual property with increased awareness of risk management and the reputational cost,” said Srinivasa Boggaram, a team leader (India and SAARC) at McAfee India Sales Pvt. Ltd, a digital security services company.
 
Some companies, for instance, have begun creating new positions called chief risk officer, or CRO, “and CISOs (chief information security officers) are being made to report to CROs especially among 
conglomerates and public sector banks”, he added.
Kedia of Marsh India, however, said the nature of risk is evolving and changing so fast that “to start with, one needs a lawyer, a forensics consultant looking at the magnitude of the problem, and a couple of PR (public relations) managers are also required to fix it (the problem).”

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS Identity Shield Helps Protect Individuals against Identity theft, Cyber crime etc. 

Courtesy : Live Mint

Saturday, 23 November 2013

Youth Alleges Credit, Debit Card Fraud

AHMEDABAD: Some online fraudsters celebrated Diwali at the expense of a victim this year. A youth has filed a complaint for cheating, saying that somebody used his credit card and debit card details to shop online. Police have sought the details of the transaction from the service providers.
 
According to Vastrapur police, Sumit Swapnil, a resident of Jigar Apartment in Bodakdev, filed a complaint that somebody used his credit card to buy goods worth Rs 37,450, and his debit card for goods worth Rs 40,690 from web portals. Both transactions took place between 2.30 pm and 2.45 pm on Tuesday.
 
M K Rana, inspector of Vastrapur police station, said that in total, Swapnil has filed complaint for cheating of Rs 78,140. "He said that the cards are with him and he had not lost them in the recent past. We are thus working on two theories - either somebody stole his data online when he was conducting transactions himself, or somebody got the details when he swiped his cards physically. We have sought details from the service providers to ascertain the identity of the buyer or get leads," he said.
 
City crime branch officials said that cases involving misuse of credit cards has reported a 20% rise from last year. "Sometimes, banks settle cases when security glitches are reported, and thus the numbers may not reflect an exact picture of online crime," said a senior crime branch official.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : Times of India 

Friday, 22 November 2013

Are You A Credit Card Fraud Victim?

Indian credit card holders are increasingly becoming the target of online fraud with thieves using the cards frequently on sites abroad, which raises questions about how secure bank data is. Banks including State Bank of India, ICICI Bank Ltd and Citibank, have been witnessing such kind of fraud.
 
Says Uttam Nayak, group country manager-India and South Asia, Visa, "You need to be careful while using credit cards for online transactions. Simple things like using a complicated password, being cautious about using your card in a secure computer environment and insuring your credit card can help reduces frauds."
 
Cases of fraudulent activities abound. The sad part is that your only way out is to get into a loop of justice-seeking that may take years together by which time the money you have lost would lose value and you would have done the running around that's worth much more. A small relief is that your credit score doesn't get affected. Says Mohan Jayaraman, managing director, Experian Credit Information Co. of India Pvt. Ltd, "Any fraudulent activity doesn't have any impact on the credit score if you have documents proving that you are fighting against the fraud."
 
Here are the hoops you need to jump through before which you can expect justice. If you are lucky, you may not have to jump through all of them.
 
Step I: Inform the bank immediately and be firm
If you notice any kind of fraud transaction in your bank account, no matter how small the amount is, call or visit your bank as soon as you get to know about the fraudulent activity. If you are calling up the customer care, take note of the customer executive's name and reference number. If you are submitting a physical letter, keep a copy for yourself. Similarly, keep the records if you send an email.
 
There are instances, when the bank refuses to take the complaint, but some banks are cooperative.
 
Says Sanjay Sharma managing director and CEO, IDBI Intech Ltd, a wholly-owned subsidiary of IDBI Bank Ltd, "The moment a customer reports fraudulent activity on his card, the card is hotlisted after the due diligence so that no further fraud takes place." Says Amit Sethi, chief information officer, Yes Bank Ltd, "If any kind of fraud happens the vigilance department is informed. If money transfer is involved, the account is freezed and immediately the process for tracing the money starts. In case money is transferred to another account fraudulently, the bank where the money is transfer is contacted and that account is also freezed. Same is the system if it happens at a point of sale or merchant. The bank contacts them too."
 
Be adamant with your bank in terms of getting back your money. Says Murali Neelakantan, partner, Khaitan & Co, a law firm, "Individuals who have gone through such a fraud should stand up and say that they are not responsible for it. In fact, it is the bank that is at risk."
 
Here you need to be vigilant in reading your transaction slip and credit card statements. Based on these documents, you can dispute with your bank.
 
Step II: Approach banking ombudsman
If you don't get a reply from your bank within the specified period, or the bank rejects the complaint, or if the you are not satisfied with the reply, you can go to the banking ombudsman.
 
For approaching a banking ombudsman, you need to first check under which jurisdiction you fall. Once you know whom to contact, you can either send an email, fax or letter to the ombudsman.
 
Usually, the banking ombudsman gives a ruling cases within 30 days. In case of fraudulent transactions and breach of security by the bank, the chances of getting justice are quite high.
 
Step III: Go to the appellate authority
If you are not satisfied with the ruling of the banking ombudsman and you have been unable to get your money bank, the next thing is to approach the appellate authority, who is RBI's deputy governor; currently, KC Chakrabarty.
 
For this you will have to send a letter addressing Chakrabarty at RBI's Mumbai office 
 
Step IV: Move the court
You can go directly to a criminal court. All you need to do is file a first information report or FIR at a police station.
 
You can also file a complaint with cyber police stations. Says Pawan Duggal, a cyber law expert, "Remember the Umashankar Sivasubramaniam case. Here an adjudicating officer ruled that the bank would have to pay around R12.50 lakh as compensation. In this particular case, the bank appealed to the Cyber Appellate Tribunal."
 
Sivasubramaniam was a victim of phishing (online identity theft) in September 2007. He alleged the bank didn't take any action and sued the bank under the Information Technology (IT) Act. As of now, the case is under trial.
 
There have been cases that have been disputed and solved and where a customer has got back his dues from the bank. But there are some that drag on for years together.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : Hindustan Times 

Keeping The Slate Clean

Errors in credit report can hamper your chances of getting loans. Here's how you can get them corrected
 
How will you feel if your loan application is rejected for not paying a debt that you never availed of? Worse, what if the loan in question is mentioned in your credit report as well?
 
But how can a loan you have not taken find its way into your credit report? Whose fault is it- banks, which send customers' details to credit bureaus, or credit bureaus, which prepare these reports? More important, what steps can you take to get such wrong entries removed from the report?
 
Before we seek answers, let's see the kind of mistakes that can creep into your credit report, which has become your financial 'character certificate'.
 
NATURE OF ERRORS
 
The errors can be as mundane as wrong name, address, identity number (PAN, Aadhar), even gender or date of birth. These are, however, not significant as they do not necessarily ruin your credit record.
 
 
The serious errors are inclusion of someone else's loan in your report or amount overdue that is much higher than the loan taken. 
 
Then there are mistakes in date of payment, account status (paid, defaulted, settled, disputed), date of loan closure, etc. These mistakes, if not corrected, can impact your credit score, resulting in rejection of loan applications or blacklisting by banks.
 
It is, therefore, important to keep your slate (read credit report) clean. To be able to do so, you need to look at your credit score and history regularly and not only at the time of applying for a loan.
 
"In the current process, credit bureaus do not verify with customers the data received from banks. It is, therefore, advisable to access your credit report regularly and see if the data there are correct," says Sanjay Patel, managing director and chief executive officer, Equifax, a credit bureau.
 
WHOSE FAULT IS IT?
 
Credit bureaus receive customers' details from lenders. They draft credit reports by collating these details, which they cannot change. They can only do 'logical' checks and reject some data if three-four mandatory fields such as PAN, address, etc, are not filled.
 
Errors can happen at both data submission and aggregation stages. At the submission stage, it is the lender that may be at fault. Details such as names and addresses, which are manually entered, may be wrong due to typographical errors at the lender's end. Also, data about credit behaviour, latest status of settlement, latest balance, etc, may not be accurate or according to the customer's understanding of his current status.
 
"Data submitted by banks are a result of multiple entries by many people. Despite adequate controls, a data entry mistake could result in an error, though these are far and few," says A Meenakshi, head, operations, ING Vysya Bank.
 
While sometimes there are genuine errors, there could also be discrepancies in the report because of the time lag between data collection and submission or data submission and updating of account status.
 
"The data come to bureaus generally with a one-month lag and, hence, the status of the account may not be up to date. This may appear as an error to the customer," says Patel of Equifax.
 
Imagine you made a payment on the 10th of the month and the report goes to the bureau on the 15th. In such a case, the lender has sent one-month-old data and, hence, your payment may not be captured in the report.
 
There are other data processing time lags too. For example, banks outsource loan collection to third-party agencies, which may have collected the cheque but not informed the bank on time. The processing of cheques itself takes time (outstation ones may take 48-72 hours to be cleared).
 
Then there are delays at the end of call centres. You may have called up the bank for converting a credit card payment into equated monthly instalments. The process may take time and the bank, in the meantime, may report the amount as an overdue.
 
At the aggregation stage, bureaus use computer algorithms to put the data in sequence. However, due to various commonalties (in name, address, date of birth, etc), complex or incomplete addresses and insufficient information, it is possible that a loan is assigned to someone else's name.
 
Due to varying levels of quality of data such as names and addresses and unavailability of latest and complete data with lenders, the aggregation of holdings across lenders may not be complete.
 
"There are chances that there are over-combines on the report due to lack of data or similarity of multiple factors like name, address, date of birth, etc, which may cause errors to creep into the report," says Patel of Equifax.
 
THE RECOURSE
 
"There is recourse, but half the time people struggle because they had not seen their credit report earlier. It is at the time of loan application, when the lender informs them about the default entry, that they realise their mistake, which now needs to be corrected immediately. However, a resolution may not be possible in such a case," says Mohan Jayaraman, MD, Experian. He says one must get his or her credit report once a year so that errors, if any, can be corrected.
 
If one finds that a loan has been incorrectly (wrong amount overdue, wrong date of closure, etc) reported, one can take up the issue with the lender. The lender will verify the details and then submit the corrected data to the bureau, which will then change the credit report accordingly.
 
If a loan shown in the report has not been taken by the person, he can approach the bureau directly and register a complaint.
 
All bureaus have dispute resolution forms on their websites that aggrieved customers can download and send with relevant identification documents.
 
If the error is due to data submitted by the bank/lender, the bureau will take up the issue with the lender. According to the law, banks have to come up with formal resolution of a dispute within 45 days of the issue being raised.
 
DISPUTE RESOLUTION
 
Not all disputes arising out of such errors are easily resolved. Usually, errors at the data aggregation (bureau) level such as wrong details and loan account can be corrected easily. However, disputes related to wrong reporting of a loan (by banks) such as wrong overdue amount, status of the loan account, date of closure and date of payment can take time to get resolved.
 
Ankur Singla, founder and CEO, Akosha, a consumer grievance redressal company, says they generally receive complaints related to score/credit history not updated in bureau records despite clearance of the outstanding amount and those related to updating of credit scores in the wrong account.
 
"These cases are at times difficult to resolve because of lack of documents that can be shown as proof. Besides, most banks have outsourced collection to third parties, due to which it becomes difficult to connect to the right person and follow up with him on a regular basis," says Singla.
 
If you are not satisfied with the resolution of your complaint, you can approach the bank or the bureau again, specifying what you want. If you are still not satisfied, you can knock at the banking ombudsman's door or move a consumer court.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy ; Business Today

Tuesday, 19 November 2013

Financial Offences Top Cyber Crimes In India

Cyber crimes in India have seen a sudden spurt. Cyber crimes have gone up by 60 per cent in 2012 at 3,500 as against 2,070 in the previous year.

The figures collected by National Crime Records Bureau (NCRB) give a graphic description of how cyber crimes have spread across the country. Maharashtra topped the list with 561 (393 in 2011) crimes, followed by Andhra Pradesh with 454 (372) and Karnataka 437 (160).
 
The data found that majority of the crimes are being done by criminals in the age group of 18 to 30.
 
“Financial offences dominate cyber crimes. Of late, we have noticed an increase where the fraudsters hacking into email accounts of companies and of customers. They read the entire email thread and lure the customers to deposit money in a fake account, duping both,” T.S. Uma Maheswara Rao, Inspector of Police (Cyber Crime Police Station, Hyderabad), told Business Line.
 
The aggregate losses suffered by customers and companies in the last one year in Hyderabad were put at Rs 2 crore.
 
The NCRB, which monitors and records crimes of all sorts across the country, has compiled a detailed cyber crime scene in the country, giving a break-up of cases under the IT Act and the Indian Penal Code. The list includes a variety of crimes – disgruntled employees breaking into systems, eve-teasing, revenge, extortion and financial crimes.
 
What’s interesting to know is that, the States that registered very low number of cyber crimes in 2011 saw sudden jump. Haryana, which registered just three cases under IPC in 2011, filed 116 cases in 2012.
 
Managing the security of devices, small business systems, and large enterprise networks has become more complex than ever before.
 
“Users are breaking down the PC monoculture by embracing a wider variety of platforms, each with its own user interface, Operating System, and security model.
 
This divergence in computing experience has further expanded opportunities for cyber criminals and other threat actors to gain profit, steal information, and sabotage their targets’ operations,” Sharda Tickoo of Trend Micro, said.
 
“”Our recent report found that 7.70 per cent of all spam across the world was being sent from India, taking second place among the spam sending countries. About 1.75 per cent of computers in India were found accessing Botnet (that makes victim’s computer its slave) connected servers,” she said.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS Identity Shield helps individuals to protect against various types of Identity Theft, Cyber crime, etc. 

Courtesy : The Hindu Businessline

Delhi: Man Arrested For Credit Card Fraud Worth Crores

New Delhi:  A man allegedly involved in theft on credit card data of more than 30,000 customers of a private sector bank and making transactions worth crores of rupees during the last 28 months has finally landed in police net.
 
According to the police, Raju Tevar a resident of Maharashtra, was arrested last week after cops tracked his cell phone location at Palghar, Thane in Mumbai and identified him through his profile picture on Facebook account created in the name of Raju Naik.
 
The police had acted on the complaint of one Abhya Srivastava, who lives in Janpath, New Delhi and whose credit card details were obtained by the Tevar in April on pretext of blocking her card. He had told her that someone had made an online purchase from her card, police said.
 
"He claimed that he is an ICICI bank employee and assured the victim that the card would be blocked. But, just after getting the card details, he made an electricity bill payment worth Rs. 44,911 to Maharashtra district electricity board," said Deputy Commissioner of Police (New Delhi) SBS Tyagi.
 
"We have recovered several laptops and mobile phones from him. The analysis of one of the laptops confirmed that it contained Credit Card data of 30,000 card holders. The data is being analyzed for further investigation" said Tyagi.
 
"During interrogation, Tevar disclosed that he had copied this data from the laptop of a friend through a pen drive. Since then, he had used the data of around 4,500 credit card holders during the last one-and-half years to make financial transactions," he said.
 
Tevar has been brought to Delhi on transit remand and currently he is in police custody for eight days. Efforts are on to arrest the co-accused from whom Tevar got this data. He is the one who had actually managed to steal the data from ICICI Bank, police said.
 
Earlier too, Tevar has been involved in more than four criminal cases, including a case of murder for which he had spent 14 months in jail in Maharashtra. Later, he was acquitted in all those cases.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : NDTV

Saturday, 16 November 2013

Insiders' role in online thefts: Experts

PUNE: It's not just clever tech planning but also inside information that apparently helped cyberthieves withdraw huge amounts of money from the accounts of people using the virtual funds transfer route.

Earlier this month, a businessman (Rajesh Bipinchandra Kamdar) was duped of Rs 19 lakh electronically in a cyberattack that targeted his bank account, where the fraudsters had blocked his cellphone sim to execute the fraud. As many as ten transactions were made from his bank account and the amounts were transferred to banks located in different parts of country. In a similar case earlier, Sanjay Govind Dhande (65), a former professor at IIT-Kanpur who now lives in Pune, also found Rs 19 lakh siphoned off from his bank account in a similar manner.

Cybercrime officials, who have leads on two of the four net-banking theft cases reported this month, revealed that in the case of the businessman who lost Rs 19 lakh, fraudsters submitted a copy of his passport to the mobile company to get another sim card issued. "The mobile company employee who issued a new sim in Kamdar's case has been traced, which will help us reach the fraudsters, who may be the same people in both cases as the IP address used in both cases is the same and has been traced to Nagpur," a cybercrime official said.

The official explained that once the second sim card was issued to the fraudster and it was activated, the first one in the victim's phone automatically got deactivated. "Investigations also revealed that the businessman's number had been diverted to another number (of a different mobile service provider) in Daund that had been deactivated six months ago. All calls made on his number were getting routed to this particular deactivated number," said the official, adding that in the meantime, Rs 19 lakh from his account were transferred to banks in Bhopal, Jaipur, Mumbai, New Delhi and Bangalore.

A cybercrime scrutiny expert said in many such internet banking related frauds, the cybercriminals usually have an insider in the mobile company as well as the bank. "The insider within a bank may provide the fraudster with information such as the 'fattest' account in the bank, the account number, user ID, the registered mobile number and even the prospective victim's KYC documents. The fraudster now knows the mobile company whose services the victim is using and arranges for an insider in that company to get the victim's KYC details. Without these insiders, such crimes are not possible," he said.

The expert added that the fraudster then uses these bogus documents to have another sim card issued to him. Once the sim is activated, he tries to reset the victim's online banking password for which the one-time-password is sent to the user's mobile number (which now the fraudster has via the duplicate sim).

Another cybercrime expert added that selling credentials of people is currently one of the biggest underground industry today, from where many fraudsters get the KYC details they seek. "There are also many duplicate sim card selling agents with vested interests within mobile service providers," the expert added.

A senior official from the cybercrime cell in the city told TOI there have been four to five such cases this month, where the victims' sim was blocked and cybercriminals transferred money from their bank accounts.

The official added that the money was transferred to 'fake beneficiary accounts' created by fraudsters in different banks across the country. "Fraudsters are able to create fake beneficiary accounts producing bogus KYC forms of people in whose names they open these accounts. Often, banks do not undertake KYC verification of each and every customer opening an account as it is a mammoth task," he said.

The official said that it is also very easy nowadays to hack into the victim's online banking username and password to execute such frauds. "If a prospective victim is using wi-fi, a seasoned hacker will know exactly how to get the information being punched in on the victim's computer even though he (victim) may be sitting somewhere else but in the same network," the official said.

Expert Speak:

"Upon receiving any alert of a bank transaction on the phone or upon having the sim suddenly deactivated, one should immediately visit the bank and ask the concerned authority to freeze all transactions. He should then lodge a complaint at the police station."

Sandip Gadiya, a cybercrime investigation expert

"Whenever people submit photocopies of pan cards or identification or address proofs, they have to make sure that it is going in trusted hands"

Sagar Rahurkar, a certified fraud examiner, said that

How the fraudsters did it

Approached the mobile service providers, produced fake KYC documents of the victim and got a duplicate sim of the victim's number issued.

Activated the second sim card, because of which the original sim card with the victim got blocked.

Made several transactions, transferring victim's money into fake beneficiary accounts, in addition to online shopping transactions.

The criminals could hack into the victim's internet banking password to execute the crime.

'Banks should ensure safety of customer information'

"As financial institutions in India interact with more of their customers electronically, they face unique challenges in ensuring that every single new channel touching a customer is secure. This is vital with cyber threats growing in sophistication and increasing the numbers of financially motivated attacks, and exploiting security weaknesses across multiple channels of the bank and ATMs are no exception," said Anand Naik, managing director - Sales, India and SAARC, Symantec.

He added that cybercriminals are always looking for newer avenues namely social networks, unprotected mobile devices and unregulated usage of cloud services to not only attack an individual's identity but also their financial information. "These areas often lack security features such as encryption, access control, and manageability, providing a massive opportunity to cybercriminals. As banks shift from a branch-centric culture to a digital-centric approach to deliver great customer experience across multiple channels, they need to adopt an information-centric view of security. In fact, banks are mandated by RBI guidelines to implement comprehensive security measures such as two-factor authentication to protect customer information, identity and transactions," said Naik.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS Identity Shield is a product which helps the individuals to protect from various Identity theft and Cyber crime.

Courtesy : Times of India

Friday, 15 November 2013

Be On Guard Against Card Fraud

Payment card frauds are a reality in a world that is increasingly growing cashless. Additionally, this fraud is also migrating from more secure to less secure regions and channels.
 
In India, even though the Reserve Bank of India (RBI) reported a lower incidence of 8,322 cases of cyber frauds in 2012 — a decline from 9,588 cases in 2011 and 15,018 cases in 2010 — there are two key differences in the nature of frauds today.
 
One, many of the frauds in India now have a global face; two, they are increasingly being perpetrated by organised and adept criminal communities, unlike in the past when individuals were involved.
 
However, if stakeholders work in tandem, the incidence of fraud can be sharply reduced. And progress in this direction could be faster than what has been made so far.
 
In fact, managing fraud should not be seen as the bastion of only the banks, payment platforms or the government. It is time for financial institutions, service providers, technology pioneers, merchants, law enforcement agencies and cardholders to come together. Crucially, advances in technology have brought about a suite of innovations and services that foster greater protection for consumers from payment card frauds. Therefore, an integrated approach and induction of superior technologies is clearly the need of the hour.
 
TECH TO THE RESCUE
 
This becomes all the more imperative in a nascent, albeit growing cashless market such as India. The overall debit and credit card usage at the Point of Sale (PoS) has seen rapid growth. According to the RBI, the number of transactions using debit cards at PoS was 327.5 million, a shade higher than the 320 million transactions using credit cards at PoS.
 
In a market with such a scale of transactions, how can all the stakeholders come together to ensure greater protection? What has been the progress so far?
 
Technology as a key enabler of fraud management: In recent years, the global payments industry has been banking increasingly on technology not only for ease of use at the customer-end but also for making card payments more secure.
 
Using state-of-the-art predictive modelling technology, MasterCard provides issuers with a real-time predictive fraud score on all transactions at the time of authorisation. Innovations like these are steps ahead of even the RBI’s latest mandate that credit and debit cards should be issued only for domestic use by default and that international cards will have to be EMV chip and PIN-enabled.
 
CHECKING CYBER CRIME
 
The banking community in the country, conscious of the problem of payments fraud, has started taking proactive steps which are laudable.
 
Some of the larger banks that are credit card acquirers have replaced some POS machines at merchant establishments, following card ‘skimming’ frauds.
 
Further, with virtual cards now being issued by a few banks, it makes it more difficult to steal data. With bankers being more aggressive in advising merchants to invest in security partners who will enable secure networks for payment processes, there could be a decrease in frauds.
 
It is also heartening to note that some of the Police departments across various states have been running a seven-day capsule course on cyber crimes for police stations, in association with India’s leading software association, Nasscom.
 
With the course now being mandatory for all police officers, apart from those who are already part of the cyber crime cells, it has helped local police stations investigate cases related to cyber crime, including credit card fraud, with greater vigour.
 
SAFETY PRACTICES
 
Finally, practices adopted by customers in using credit and debit cards will go a long way in ensuring greater card protection. For example, while shopping online, it is useful to ensure that that the Web page address should start with “https” not “http”. The “s” that is displayed after “http” indicates that the Web site is secure.
 
Also, while travelling overseas, it is advised to notify one’s bank so that it is aware that overseas transactions will be made. If not, the unfamiliar spending patterns could cause your bank to suspect that your card is being used fraudulently and thus delay your card purchase approvals.
 
The : RBI’s latest policy and technology guidelines could mark the beginning of a new era to help check card frauds. With banks moving towards a system that facilitates authentication for cards issued in India and used internationally, there will be closer coordination between them and the authorised card payment networks.
 
Similarly, the new guideline that allows banks to block cards via SMS if needed will make it easier to protect consumer interests. In September 2012, it became mandatory for telecom operators offering mobile wallets with cash-out facility to sign up customers only under a Banking Correspondent tie-up.
 
These measures could perhaps take time to take full effect. But they would have a long term positive impact in driving payment card protection measures.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy : The Hindu Businessline

Thursday, 14 November 2013

Cyber crime costs India 8 billion USD

Kolkata: Cyber criminals are out on the prowl!

The mushrooming cyber crime cases in India are to be blamed for financial losses. More than 42 million people in India have been victimized by cyber criminals since the last 12 months, with approximately 8 billion US dollars in direct financial losses, a recent report said.

These findings form part of the Norton Cyber Crime Report 2012 based on experiences of over 13,000 adult internet users across 24 countries globally, including 1,000 from India. The global cost to cyber crime was estimated at $110 billion, Chinese news agency Xinhua reported.

According to the report, 66 per cent of adults in India have been victims of cyber crime in their lifetime. In the last 12 months, 56 per cent of adults online in India have experienced cyber crime, translating to more than 1,15,000 victims of cyber crime every day or 80 victims a minute and more than 1 a second.

The average direct financial cost per victim is placed at $192, up 18 percent over $163 in 2011. Globally, every second, 18 adults become a victim of cyber crime, resulting in more than one-and-a- half million cyber crime victims each day. With losses totaling an average of $197 per victim across the world in direct financial cost, in the last 12 months, an estimated 556 million, or 46 per cent of adults across the world, have been victimized by cyber crime. This figure is almost on par with the findings in 2011 at 45 per cent, Xinhua added.

This year's survey shows an increase in "new" forms of cyber crime compared to last year, such as those found on social networks or mobile devices -- a sign that cyber criminals are starting to focus on these increasingly popular platforms, the report said.

In India, one in three adults online (32 per cent) has been a victim of either social or mobile cybercrime in the last 12 months, and 51 percent of social network users have been victims of social cyber crime. Specifically, 22 per cent of social network users reported someone had hacked into their profile and pretended to be them, Xinhua stated.

Fifteen per cent of social network users said they were victimized by the scam or fake link on social network platforms. While 83 per cent believed that cyber criminals are setting their sights on social networks, only around half (57 per cent) actually used a security solution which protects them from social network threats.

Only 44 per cent used the privacy settings to control what information they share and with whom. Nearly half (44 per cent) of mobile users received a text message from someone they didn't know requesting that they click on an embedded link or dial an unknown number to retrieve a "voicemail." "Cyber criminals are changing their tactics to target fast growing mobile platforms and social networks where consumers are less aware of security risks," Effendy Ibrahim, Internet Safety Advocate and Director for Asia of Norton, said.

"This mirrors what we saw in this year's Symantec Internet Security Threat Report 7 which reported nearly twice the mobile vulnerabilities in 2011 from the year before," Xinhua quoted Ibrahim as saying.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS Identity Shield is a product of Credit Sudhaar which helps them to be a victim of various Identity Theft, Cyber crime, Frauds, etc.

Courtesy : Daily Bhaskar

Tuesday, 12 November 2013

India Has 42 Mn Cyber Crime Victims Every Year

The 'Internet Security Threat' report that was recently released by Norton (Symantec) has stated India has 42 million cyber crimes every year.
 
According to the report, there are 42 million cyber crime victims every year on a pan-India basis. During the last year, 52 per cent of such victims had suffered attacks such as malware, viruses, hacking, scams, fraud and theft.
 
The report adds eighty people are vicitimised under various cyber crimes, every minute across India.
 
The study reports seven out of 10 adults have been victims of different modes of cyber crime in their life time.
 
Ritesh Chopra, Country Sales Manager, Norton said seven per cent of the estimated global price tag of cyber crimes are being carried out every year in India. The estimated price tag in India is US $ 8 billion whereas the global bill is US $ 110 billion. Eighty-five per cent of the total financial cost of the cyber crimes are the result of fraud, theft and loss. Fraud constitutes 42 per cent of the total financial loss.
 
The report reveals a 58 per cent increase in mobile malware. Thirty-two per cent of mobile threats are attempts to steal e-mail IDs and telephone numbers and 61 per cent of malicious web sites are legitimate and are compromised and infected with a malicious code. The top five web sites hosting infections include business, technology and shopping web sites. Sixteen gangs are active in ransomeware.
 
The report adds India tops the table in cases of spam attacks across the globe, is number two in virus attacks and is third in case of all kinds of threats.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy

Courtesy : Business Standard