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<ul><li>There has been an increase in <keyword id="43991" type="General" weightage="100" keywordseo="financial-fraud" source="Orion">financial fraud</keyword> amid an increase in financial transactions.</li><li>People are storing important financial information on their smartphones without any security.</li><li>88% of the people surveyed have submitted their Aadhaar as proof for applications and bookings.</li></ul> The Reserve Bank of India (RBI) has revealed that 5,406 instances of financial fraud were reported during April-September 2022, up from 4,069 reports during the same period in 2021. According to the central bank, the modus operandi for fraud has shifted to card and internet-based transactions. According to a survey conducted by LocalCircles, people are still storing important financial information such as internet banking passwords, and debit and credit card PINs on their smartphones. <cmsannotation type="cmsannotation" annotationid="17% of people store financial information on their smartphone" comment="subhead" text="17% of people store financial information on their smartphone">17% of people store financial information on their smartphone</cmsannotation> Out of over 32,000 people surveyed, 9% admitted to storing important financial information on their phone’s contact list, and 8% admitted using the notes app on their smartphone. This means that 17% of people store important data without security. A similar survey in 2021 revealed that 11% of people were storing important financial data on their phones, meaning there has been an increase in this number, despite attempts by the central bank to raise awareness among the people. 18% of the people revealed that they store financial information on their computers and laptops. At the same time, 14% of the people claimed that they had memorised their financial information and had yet to store it anywhere. <cmsannotation type="cmsannotation" annotationid="24% of the people share their debit and credit card PIN with family" comment="subhead" text="24% of the people share their debit and credit card PIN with family">24% of the people share their debit and credit card PIN with family</cmsannotation> According to the report, 24% of the people share their debit and credit card PIN with one or more family members, and 6% share with their domestic or office staff. 67% of the people surveyed said they do not share this information with anyone. <cmsannotation type="cmsannotation" annotationid="88% of the people share Aadhaar for applications and bookings" comment="subhead" text="88% of the people share Aadhaar for applications and bookings">88% of the people share Aadhaar for applications and bookings</cmsannotation> Identity and address proofs such as Aadhaar, PAN, driving licence and others have become something we often share with government or private entities such as banks and hotels for various applications and bookings, be it in digital form or as a photocopy. Sometimes, more than one of these documents is shared, and there is an overlap. A staggering 88% of the people have revealed that they have shared their Aadhaar as proof in the last five years. This was followed by 58% of the people sharing their PAN and 47% of the people sharing their driving licence. Additionally, 42% of the people shared their passports, and 35% shared their voter ID. <cmsannotation type="cmsannotation" annotationid="Nearly half of the people have faced a financial fraud" comment="subhead" text="Nearly half of the people have faced a financial fraud">Nearly half of the people have faced a financial fraud</cmsannotation> According to the report, 42%of the people surveyed have claimed to have faced some type of financial fraud during the three years between June 2019 to June 2022. Worse, 74% of these people failed to get their money back. We recommend that users do not store sensitive financial information such as banking passwords and debit and credit card PINs on their smartphones and laptops. Instead, users should opt for secure applications or try to memorise this information. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/most-common-passwords-can-be-easily-cracked-by-ai-in-under-a-minute/articleshow/99379900.cms">AI chatbots are cracking the code: How PassGAN can break into 51% of common passwords in under a minute</a> <a href="https://www.businessinsider.in/tech/news/google-makes-it-easier-for-users-to-delete-their-account-and-data-from-applications/articleshow/99289621.cms">Google makes it easier for users to delete their account and data from applications</a> <a href="https://www.businessinsider.in/tech/mobile/news/how-to-block-your-lost-or-stolen-phone-and-how-to-unblock-it/articleshow/99207569.cms">How to block your lost or stolen phone and how to unblock it</a>

Despite a rise in financial frauds, 17% of people store financial information on their smartphones

In a bid to bolster the safety and security of <keyword id="19989657" type="General" weightage="20" keywordseo="digital-payments" source="keywords">digital payments</keyword> and enhance regulatory frameworks, the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) unveiled a series of proposals aimed at fostering innovation, inclusivity, and efficiency in the financial ecosystem. These initiatives, announced by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword>, signify the central bank's commitment to fortifying India's digital infrastructure and promoting a conducive environment for financial transactions. One of the key announcements made by Governor Das pertained to the establishment of a Digital Payments <keyword id="21971766" type="General" weightage="20" keywordseo="intelligence-platform" source="keywords">Intelligence Platform</keyword>. This platform, leveraging advanced technologies, aims to mitigate payment <keyword id="19898489" type="General" weightage="20" keywordseo="fraud" source="keywords">fraud</keyword> risks and enhance the safety of digital transactions. According to the annual report released by the Reserve Bank of India (RBI) on May 30, there was a significant surge in the number of financial frauds reported by banks, increasing by 166 per cent year-on-year in the financial year 2023-24 to reach 36,075 cases. This figure starkly contrasts with the 13,564 cases reported in the previous fiscal year, FY23. Despite the notable rise in the number of fraud cases, there was a substantial decrease in the total amount involved in these incidents. The amount of money associated with total bank frauds plummeted by 46.7 per cent year-on-year in the financial year 2023-24, totaling Rs 13,930 crore. In comparison, the amount recorded in FY23 stood at Rs 26,127 crore. RBI has proposed a revision of the limit of bulk deposits for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs). This move, aimed at enhancing flexibility and aligning with evolving market dynamics, underscores the RBI's commitment to fostering a conducive environment for the banking sector. Currently, banks have the discretion to offer differential rates of interest on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. The existing bulk deposit limit for SCBs (excluding Regional Rural Banks) and SFBs, set at 'Single Rupee term deposits of Rs 2 crore and above,' was established in 2019. However, following a comprehensive review, the RBI has proposed to revise this definition to 'Single Rupee term deposits of Rs 3 crore and above' for SCBs and SFBs. In addition to the proposed revision for SCBs and SFBs, the RBI has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as 'Single Rupee term deposits of Rs 1 crore and above,' mirroring the criteria applicable to Regional Rural Banks (RRBs). RBI has also unveiled plans to rationalize export and import regulations under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underscores the RBI's commitment to fostering a conducive environment for international trade and investment. By eliminating redundancies, enhancing clarity, and reducing procedural complexities, the RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade. The RBI aims to streamline and simplify operational procedures related to export and import transactions, thereby reducing administrative burdens and enhancing efficiency for businesses and authorized dealer banks. By aligning regulations with international best practices and market realities, the RBI seeks to create a business-friendly environment conducive to fostering trade and investment growth. Simplified regulations will facilitate smoother trade transactions, encouraging businesses to explore new markets and expand their global footprint. While promoting ease of doing business, the RBI remains committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system. The proposed rationalization will uphold the principles of transparency, accountability, and risk management in cross-border transactions. As part of the process, the RBI plans to publish draft regulations and directions on its official website by the end of June 2024. In a bid to enhance the convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC), and similar services. This initiative, aimed at modernizing payment systems and promoting financial inclusion, underscores the RBI's commitment to fostering innovation and leveraging technology to meet evolving consumer needs. The current UPI Lite service permits customers to load their UPI Lite wallets with up to Rs 2000/- and conduct transactions of up to Rs 500 from the wallet. To enhance the seamless usage of UPI Lite for customers, and in response to feedback from various stakeholders, it is suggested to integrate UPI Lite into the e-mandate framework. This integration would introduce an auto-replenishment feature for UPI Lite wallets, automatically refilling the wallet balance when it falls below a predetermined threshold set by the customer. Since the funds remain under the customer's control (transferring from their account to the wallet), it is proposed to eliminate the need for additional authentication or pre-debit notifications. Relevant guidelines pertaining to this proposal will be issued shortly. RBI has embarked on a mission to foster innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, "HARBINGER 2024 - Innovation for Transformation." It would feature two primary themes: 'Zero Financial Frauds' and 'Being Divyang Friendly.' Solutions aimed at bolstering the safety and security of digital transactions, with a specific emphasis on identifying, preventing, and combating financial frauds, will be solicited. Additionally, there will be a focus on fostering inclusivity for individuals with physical disabilities. Further details regarding the hackathon will be unveiled shortly. SEE ALSO:<a href="https://www.businessinsider.in/tech/news/indian-smartwatch-shipments-remain-flat-in-q1-2024-the-year-expected-to-end-in-a-decline/articleshow/110789121.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/indian-smartwatch-shipments-remain-flat-in-q1-2024-the-year-expected-to-end-in-a-decline/articleshow/110789121.cms" target="_blank">Indian smartwatch shipments remain flat in Q1 2024, the year expected to end in a decline</a><a href="https://www.businessinsider.in/tech/news/computex-2024-intel-debuts-lunar-lake-chips-with-focus-on-microsofts-ai-ambitions-for-pcs/articleshow/110745670.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/computex-2024-intel-debuts-lunar-lake-chips-with-focus-on-microsofts-ai-ambitions-for-pcs/articleshow/110745670.cms" target="_blank">Computex 2024: Intel Debuts Lunar Lake Chips With Focus On Microsoft’s AI Ambitions For PCs</a><a href="https://www.businessinsider.in/business/auto/news/may-auto-sales-tata-motors-and-hyundai-continue-to-fight-for-the-second-spot-as-car-sales-grow-by-4/articleshow/110649713.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/may-auto-sales-tata-motors-and-hyundai-continue-to-fight-for-the-second-spot-as-car-sales-grow-by-4/articleshow/110649713.cms" target="_blank">May Auto Sales – Tata Motors and Hyundai continue to fight for the second spot as car sales grow by 4%</a>

RBI announces digital payments intelligence platform to check online frauds

<ul class="summary-list"><li>Credit card skimmers are increasingly targeting the financially vulnerable nationwide.</li><li>The FBI estimates card skimming costs consumers and banks around $1 billion yearly.</li></ul><a target="_blank" href="https://www.businessinsider.com/walmart-fake-credit-card-readers-look-real-how-avoid-skimmers-2023-7">Credit card skimmers</a> are on the rise nationwide and they're targeting the country's most financially vulnerable people.The FBI estimates that card skimming costs consumers and banks around $1 billion each year. Last year, <a target="_blank" href="https://www.fico.com/blogs/debit-card-compromises-nearly-doubled-2023-fico-data#:~:text=Now%20that%20we%27ve%20reviewed,than%20315%2C000%20impacted%20cards%20identified.">Fair, Isaac and Company</a>, a financial data analytics firm, found that debit card skimming grew by a whopping 96% compared to the previous year.Last month, the federal agents from the Secret Service swept through 472 business in Florida after reports of increased EBT scam fraud, <a target="_blank" href="https://www.news4jax.com/news/local/2024/06/27/secret-service-agents-swept-120-jacksonville-businesses-to-search-for-skimmer-devices-news4jax-got-exclusive-access/">WJXT</a> reported. Police found 13 devices statewide. The Secret Service estimated that police prevented around $1.3 million of losses through the operations, WJXT reported.Authorities nationwide say reports of <a target="_blank" href="https://www.businessinsider.com/ai-phishing-scams-automation-detection-2024-6">card skimming and EBT fraud</a> have increased over the past year.The Washington State Department of Social and Health Services said this week it found an "alarming surge in fraud" related to EBT skimming. The agency estimates EBT recipients lost around $5.5 million over the past two years from the fraud, <a target="_blank" href="https://www.seattletimes.com/seattle-news/law-justice/wa-facing-alarming-surge-in-ebt-card-scams/">The Seattle Times</a> reported.Authorities in <a target="_blank" href="https://www.29news.com/2024/07/03/charlottesville-social-services-warns-about-snap-ebt-scammers/">Virginia</a>, <a target="_blank" href="https://spectrumlocalnews.com/nys/central-ny/news/2024/07/02/ebt-card-skimming">New York</a>, and other states have also issued similar warnings in recent weeks.The New York Office of Temporary and Disability Assistance issued an EBT scam <a target="_blank" href="https://otda.ny.gov/">alert</a> on July 2, warning of increases in card skimming and phishing. <a target="_blank" href="https://www.businessinsider.com/fresno-officials-should-notice-phishing-scam-jury-trial-court-california-2024-6">Phishing</a> is a form of scamming where criminals try to obtain your personal information by pretending to be someone you know or trust; perpetrators will often send emails purporting to be from your bank or from a social media platform you use.While card skimmers are efficient in stealing data, EBT cards usually require a PIN number that they can't easily lift from the machine, according to the <a target="_blank" href="https://consumer.ftc.gov/consumer-alerts/2024/05/protect-your-snap-benefits-illegal-card-skimmers">FTC</a>.The scammers use phishing tactics like texting or set up hidden cameras next to cash registers to steal the PIN numbers, the agency says.To avoid card skimming scams, the FTC recommends checking to see if the card reader is loose when paying, changing your EBT PIN number at least once a month, be vigilant for phishing, and regularly check the amount held in your EBT account.The NY Office of Temporary Disability also recommends checking for discoloration between the body of the machine and the card reader."The easiest way to check for a skimmer is to gently pull up on the terminal. They are flimsy and will come right off," the agency says. "If you notice any signs that a skimmer may be in use do not swipe your card and alert the store manager. Contact the police and notify your local department of social services as soon as possible."

Card skimmers are hard to spot and on the rise. Here's what you can do to protect yourself.

<ul><li>Emotet malware was developed as a banking trojan that steals personal information.</li><li>The malware was deactivated a year ago but has again been detected in November 2021.</li><li>This time, <keyword id="182214" type="General" weightage="20" keywordseo="google-chrome" source="Orion">Google Chrome</keyword> users are at risk as it targets stealing credit and <keyword id="14160108" type="General" weightage="20" keywordseo="debit-card-information" source="Orion">debit card information</keyword>.</li></ul>Google Chrome users are yet again at the risk of being compromised by another banking trojan. This time, it’s not a new one, but it is capable of stealing your credit and debit card information. The malware known as Emotet mainly spreads through spam mails and tempts users to click on the infected files and links. Originally, the Emotet virus was used to access the sensitive and private information of foreign devices. After staying dormant for a while, it seems like Emotet has made its way back again with its new variant that targets Google Chrome users by stealing their card information. Emotet peeks into your system and tries to steal card information like name, expiry date and card numbers from Google Chrome profiles. It collects information and then transfers it to the command-and-control (C2) server. Also, it has the ability to hide from anti-virus software. Tips to keep yourself protected from Emotet <ul><li>Install all security updates to prevent the virus from sneaking in.</li><li>Scan your system regularly and install all the necessary virus and malware protection programs.</li><li>Read the mails carefully and avoid clicking on fishy links.</li><li>Keep a backup of your data.</li></ul>Emotet is considered one of the most dangerous malware as it not only spreads via mail but also is used as a dropper for other malwares like TrickBot. TrickBot is also a banking trojan that steals and accesses personal information, financial details and account credentials by sending fraud banking links. SEE ALSO: <a href="https://www.businessinsider.in/india/news/how-to-use-indian-railways-destination-alert-service/articleshow/92106794.cms" style="">What is Indian Railways destination alert service and how to use it</a> <a href="https://www.businessinsider.in/tech/apps/news/how-to-prevent-your-instagram-account-from-getting-hacked/articleshow/92103322.cms" style="">How to prevent your Instagram account from getting hacked</a>

This new Google Chrome malware can steal your credit and debit card information

In mid-March, a scammer in California tried to buy $150 worth of <a target="_blank" href="https://www.businessinsider.com/trying-wingstop-first-time-review-photos-2022-9">Wingstop</a> using my debit card. Aside from being impressed at the sheer size of the order, I was relieved because Citibank, which issued my card, declined the transaction on the spot and alerted me to the fraud. In minutes I was able to shut off my card, heading off any more purchases by the scammers, and order a new card. All's well that ends well.When I went to Buenos Aires in April, I figured I might <a target="_blank" href="https://www.businessinsider.com/personal-finance/why-was-my-credit-card-declined">run into a similar situation</a>. Sure, the banks say you don't have to call ahead when you travel anymore, but I assumed I'd still have some purchase flagged as potential fraud, as had happened in past trips abroad. Miraculously, everything went off without a hitch. I don't know how JPMorgan Chase knew that I would spend $200 on Botox in Argentina, but it did. (No, I didn't book my flight on the same card, and whatever, <a target="_blank" href="https://www.businessinsider.com/botox-injections-fillers-plastic-surgery-gen-z-social-media-filters-2024-5">everybody gets Botox now</a>.)It's great that banks and credit-card companies are getting better at discerning which payments are fraudulent and which are legit. Many people have some horror story about having their credit card stolen or having their own legitimate transactions flagged as suspicious. And it's nice not to have to spend 20 minutes on the phone before a vacation explaining where you're going and when. Credit-card fraud protection is still far from perfect, but there's no denying that the technology is improving. On the flip side, it's also kind of wild to consider just how much financial institutions must know about you to make the right calls.I was curious about how it all works — and, frankly, a little creeped out. So I reached out to some credit-card companies and academics to learn more. Why don't people have to alert their credit-card companies about travel anymore? And, more broadly, just how have banks gotten so good at figuring out what's normal about our spending habits and what isn't?The Federal Trade Commission receives thousands of card-fraud complaints each year. The Nilson Report, which tracks the card industry, says payment-card fraud resulted in $33 billion in losses worldwide in 2022 and $13.6 billion in losses in the US. As such, credit-card issuers and banks are keen to do what they can to spot fraud. They want to keep their customers happy, and, more importantly, they want to stem their losses. In the US, the major credit-card issuers and banks <a target="_blank" href="https://www.businessinsider.com/personal-finance/credit-card-lost-stolen-what-to-do">generally have a zero-liability policy</a>, which means that when a customer gets scammed, the organization, not the customer, has to eat the cost.Years ago, whether a transaction went through was based on things like whether a physical card was present, whether you had enough money to make the purchase, and (if the cashier wanted to look) whether your signature on the receipt matched the one on the back of your card. In some cases, the cashier may have even asked for ID or called the bank to verify the funds. We've come a long way from those bad old days by using the same tools that power most innovations: data and computers. Credit-card companies and banks know a lot about us — where we shop, when we spend, and how much we're usually willing to pay for things — and they're getting better and better at turning that knowledge into action. While it's <a target="_blank" href="https://www.businessinsider.com/generative-ai-exaggeration-openai-nvidia-microsoft-chatgpt-jobs-investors-markets-2024-3">all the rage to talk about newfangled forms of artificial intelligence</a>, fraud detection owes a lot to machine learning, a field within AI that's been around for years. A bunch of data gets dumped into computer systems, and algorithms figure out patterns and relationships. The algorithms create decision trees to predict the likelihood of different outcomes and identify what may be considered normal or fishy. It's not that your credit-card company knows that you, specifically, would blow a bunch of cash on A and not on B — it knows that customers with your profile are in the "likes A" camp and not the "likes B" one."It's looking at what's happening that is very much out of the ordinary for your general behaviors," said Tina Eide, an executive vice president of global fraud risk at American Express. "And when I talk about general behaviors, it is generalized, right? It is not down to the specific purchase or to the specific merchant." Eide added, "The models are evaluating a trillion dollars' worth of transactions a year."The machines know more now than ever. Mike Lemberger, Visa's regional risk officer for North America, said that over the past five years the number of data points people generate with their credit cards has grown tremendously. People are increasingly using cards over cash. And they don't just have a physical card they're pulling out at the store — they've got their card credentials in their Amazon account, Netflix account, iPhone, etc. The more purchases the card issuer can analyze, the more accurate the fraud detection will be."Visa, we don't have consumer information — that's your financial institution that has that — but what we have is this triangulation of all these data points," Lemberger said. "We can create more and better scores, layer on top of that machine learning and AI abilities, and it becomes a much, much more powerful predictor, which we then feed into all of our partners to say, 'Hey guys, if you want to make the best decisions, here's a whole bunch of really good information.'"Visa isn't going to block your card directly, but it'll alert your bank that your purchase looks suspicious or that fraud has been detected at the merchant you're dealing with.This all seemed pretty simple until I talked to Yann-Aël Le Borgne and Gianluca Bontempi, a pair of researchers at the Université Libre de Bruxelles in Belgium who <a target="_blank" href="https://fraud-detection-handbook.github.io/fraud-detection-handbook/Foreword.html#authors">work on machine learning and card fraud</a>. They emphasized the vast scale of this fraud-detection technology. Companies and their algorithms are ingesting millions of transactions and creating so many decision trees to categorize certain activities that it can defy human logic, they said. Basically, the computer may be right that your transaction looks funky even if it's made in your home city at a fairly innocuous vendor, or it may be right that the transaction is fine even though it's made in a faraway place — but when humans try to figure out what did or didn't sound the alarm, nobody will really be able to pinpoint why."Machines can consider many more features, and at the end of the day it's not clear if all those features have meaning for humans," Bontempi said. "Humans are used to working with two, three features, at most five features, while machines can work with hundreds of features. So there are really different levels between what a machine can do."There are human-written rules, which are generally interpretable, and there are machine-written rules, which can be a black box. They're more accurate, but they may be harder, if not impossible, for people to reverse engineer. And banks may be using several different algorithms, making this even more complicated. Data scientists are the ultimate decision-makers, but the information they're dealing with is based on highly complex tech. When I explained to experts my somewhat embarrassing wings-versus-wrinkles conundrum and asked what may have triggered one alert and not the other, they offered up different explanations. Eide, from American Express, said that even though I hadn't booked my trip to Argentina with the credit card I used to buy the Botox, something else had probably tipped off the system that I was there. I realized I'd also bought a package of spin classes in Buenos Aires on my phone with the same card. I had also paid for a meal in the city. Lemberger, from Visa, emphasized that it's about all the data and spending patterns and said that given my spending patterns, the Botox likely matched my profile more than the massive delivery order."I hate to say this to you, but at the end of the day, all these data points build personas. Just like in marketing somebody would use personas to market to you, we're using that same technology to protect you," he said. "And the fact is that we use those data points to not just secure you but the whole ecosystem."At some point it occurred to me that the supercomputers that credit-card companies and banks are working with could know more about me than I even know or understand about myself."It's probable that the exact reason why a transaction caused your card to be blocked has no straightforward interpretation," Le Borgne said.I also asked whether there was a big difference in credit-card protections and debit protections and was told not really — maybe banks will be a little more restrictive about credit because they're technically lending you money that's not limited by your actual cash balance. I also asked if companies don't worry about preclearing travel because they don't care as much about losing money to fraud anymore, to which the answer was a hard no."At the end of the day, somebody's got to pay for the fraudulent activity," Lemberger said. Credit-card companies will give you your money back if you're a victim of fraud, but they'll find another place to recoup that money, <a target="_blank" href="https://www.businessinsider.com/credit-card-late-fees-cap-swipe-mastercard-visa-jpmorgan-rewards-2024-4">just as they always do</a>.Instinctually, I am not a technology-is-awesome person — if the AI really is going to kill us, I feel like we should unplug it. I'm not super freaked out about the privacy stuff, but I also don't love the idea that AmEx and JPMorgan and Citi have me so pegged. But it's cool that companies really are making fraud detection better, especially in a world where fraudsters themselves are constantly getting better. I don't want to be like "Yay, banks!" but maybe here the answer really is a little "Yay, banks!" At least that's the case until the next major data-privacy breach, at which point I will regret everything.<a target="_blank" href="https://www.businessinsider.com/author/emily-stewart">Emily Stewart</a> is a senior correspondent at Business Insider, writing about business and the economy.

Banks have finally fixed the single most annoying thing about credit cards

<ul><li>The dollar volume of fraudulent credit and debit card charges soared 35% year-over-year in April, <a href="https://www.wsj.com/articles/borrower-beware-credit-card-fraud-attempts-rise-during-the-coronavirus-crisis-11590571800">The Wall Street Journal</a> reported Wednesday, citing data from Fidelity National Information Services.</li><li>The surge in such charges arrives as consumer spending plummets, leaving card issuers and consumers at a rapidly growing risk of account <keyword id="38935" type="PERSON" weightage="60" keywordseo="Fraud">fraud</keyword>.</li><li>The rise in such attempts arrives as millions of Americans failed to make card payments in April. A recent TransUnion report showed the share of accounts falling into "financial hardship" programs jumped 3.2%, or 14.7 million accounts, in April.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Credit and debit card fraud attempts are skyrocketing as consumers weather the coronavirus pandemic and resulting recession.The dollar volume of fraudulent transactions leaped 35% year-over-year in April, <a href="https://www.wsj.com/articles/borrower-beware-credit-card-fraud-attempts-rise-during-the-coronavirus-crisis-11590571800">The Wall Street Journal</a> reported Wednesday, citing data from Fidelity National Information Services. The sharp increase arrives as consumer spending has slumped to historic lows, signaling card issuers could face significant costs as a larger share of transactions turn fraudulent.Fraud losses reached $16.9 billion last year, according to The Journal, a 15% increase from 2018 and a worrying sign for cardholders, banks, and businesses. All parties stand to lose from such a jump, whether through undetected charges or reversed purchases. Read more: <a href="https://www.businessinsider.com/stock-market-bubble-forming-cheap-hedging-strategy-bank-of-america-2020-5">Bank of America says a new bubble may be forming in the stock market — and shares a cheap strategy for protection that is 'significantly' more profitable than during the past 10 years</a>Fraudsters are employing a range of strategies to steal <keyword id="6368202" type="UNKNOWN" weightage="60" keywordseo="credit-card">credit card</keyword> information. Some use random strings of card numbers until they find a real account to make fraudulent purchases, The Journal reported. Others use emails, texts, or phone calls to trick consumers into revealing their account information.The rise in fraud attempts arrives as millions of Americans fall behind on credit card payments amid the worsening economic backdrop. The share of credit card accounts entering "financial hardship" programs <a href="https://www.businessinsider.com/debt-credit-card-auto-loan-payments-missed-april-coronavirus-economy-2020-5">surged by 3.2%</a>, or 14.7 million accounts, in April, according to a recent report from credit-reporting agency TransUnion. The same measure jumped just 0.01% the previous month as virus lockdowns first kicked off.Auto loans also slid into hardship status, with 3.5%, or nearly 3 million accounts, unable to cover monthly payments last month.The trends stand to worsen as layoffs continue and consumers stockpile cash to ride out the worst recession in nearly a century. Jobless claims made last week totaled 2.1 million, the Labor Department announced Thursday, bringing the metric's 10-week total past 40 million. A continued rise in <keyword id="6354772" type="UNKNOWN" weightage="60" keywordseo="credit-card-fraud">credit card fraud</keyword> could further hit Americans laid off during the pandemic and struggling to stay afloat through the downturn.Read more: <a href="https://www.businessinsider.com/25-stock-picks-to-buy-hedge-fund-favorites-outperformance-ytd-2020-5">GOLDMAN SACHS: Buy these 25 stocks that are wildly popular with hedge funds — and have crushed the market this year</a>Read the original article on <a href="https://www.businessinsider.com/credit-card-account-fraud-skyrockets-coronavirus-pandemic-recession-economy-layoffs-2020-5">Business Insider</a>

Credit-card fraud surges 35% as coronavirus freezes the economy and wipes out jobs

<ul><li><keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (SBI) has reduced the withdrawal limit from ₹40,000 to ₹20,000 per day to minimise fraudulent transactions and promote digital transactions. </li></ul><ul><li>The lower limit will be effective from 31 October. </li></ul><ul><li>The reduced limits are applicable on Classic and Maestro debit cards.</li></ul>The largest commercial bank in India, State Bank of India (SBI), has cut down the withdrawal limit on ATM transactions for certain debit cards from ₹40,000 to ₹20,000 per day. The lower limit will be applicable from 31 October. The withdrawal limit has been imposed on Classic &amp; Maestro debit cards. However, the account holders with higher card variants can continue to benefit from the regular daily withdrawals. The average cash withdrawals from ATMs per card have been examined to be less than ₹20,000 a day and the lower limit will help in checking frauds and promote digital transactions. SBI alerted its account holders, the ones with the Classic and Maestro debit cards, regarding the reduction in the limits about a month ago. The users with Gold and Platinum cards will continue to enjoy higher withdrawal limits of ₹50,000 and ₹1 lakh a day, respectively. The bank has asked its customers to upgrade to the higher variants to enjoy higher ATM withdrawals. The <a href="https://www.sbi.co.in/">SBI</a> website had put out the following message on the website: “Daily cash withdrawal limit for Classic and Maestro debit cards has been reduced from ₹40,000 to ₹20,000 per day with effect from October 31. If you require higher daily cash withdrawal limit, please apply for a higher card variant.” The bank has initiated the lower limit to reduce fraudulent transactions and encourage cashless transactions. As reported by <a href="https://www.hindustantimes.com/business-news/sbi-halves-daily-atm-withdrawal-limit-to-rs-20k-for-certain-card-holders-from-october-31/story-qnfx5bBNW7oC1pyWgeUQYK.html">Hindustan Times</a>, the ATM transactions were analysed and it was found that majority of the frauds reported to the bank happened to be of ₹40,000 that is the maximum limit per day. The reduced withdrawal limit was picked to protect customers and encourage digital transactions, SBI Managing Director PK Gupta explained. As per <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-halves-daily-atm-cash-withdrawal-limit-to-rs-20000/articleshow/66021831.cms">reports</a>, multiple cases in the past saw a trend of stealing debit card PIN numbers via hidden cameras and electronic devices. The bank feels that the move will help to keep close check on fraudulent activities. However, enough are of the opinion that the debit card users are most prone to card frauds and the risk is not limited to ATMs. In India, the demand for cash continues to be high, despite the government promoting digital transactions. But, daily transactions have been reported to be of amounts lesser than ₹20,000, so this move should help to track frauds on ATM transactions. A large number of card users are to be impacted by the reduced limits since SBI’s Classic card holds a majority of its card portfolio.

State Bank of India halves withdrawal limit at ATMs to ₹20,000 per day to prevent fraud

<ul class="summary-list"><li>Three people were arrested in connection to a scheme stealing identities of victims of the Surfside <keyword id="12055641" type="UNKNOWN" weightage="60" keywordseo="collapse" source="Orion">collapse</keyword>.</li><li>Authorities said they stole the identities of at least seven victims, creating fraudulent cards and spending thousands of dollars on them.</li><li>"Today they got what they deserved, and we're all much happier for it," Surfside Mayor Charles Burkett said.</li></ul>Three people were arrested Wednesday in connection to an alleged scheme using stolen identities of victims of the Surfside condominium collapse to open fraudulent credit and debit cards and spend thousands of dollars on them.In July, officials first reported that Surfside victims' identities were being stolen by an unidentified hacker, urging families of victims to check their credit in case they were targeted, <a href="https://www.local10.com/news/local/2021/07/16/officials-hacker-stole-identities-of-multiple-victims-killed-in-surfside-condo-collapse/">WPLG</a> reported."It's terrible," Surfside Mayor Charles Burkett told WPLG at the time. "I can't wait to put a face to these deeds right now, and I think all of South Florida is eager to see who would do something like this - what kind of person would do something like this."Betsy Alejandra Cacho-Medina, 30, Rodney Choute, 38, and Kimberly Michelle Johnson, 34, were taken into custody Wednesday morning. They were charged on multiple counts, including fraud and counterfeiting, and could face 15 to 30 years in prison if convicted, according to a <a href="https://www.local10.com/news/local/2021/09/08/arrests-made-in-surfside-stolen-identities-case/">WPLG report</a>.Investigators said the trio stole the identities of at least seven victims of the June 24 collapse of Champlain Towers South - five who died and two who survived, according to WPLG."Cyber grave robbers moved very quickly after the collapse to grab what they could from deceased victims," Miami-Dade State Attorney Katherine Fernandez Rundle told reporters during a Wednesday press conference."For a group of alleged identity thieves, it was a time to make some money, and that's what this was about," Fernandez Rundle said.During the press conference, authorities played an audio clip of a woman - whom authorities identified as Medina - posing as someone named Ms. Ortiz who survived the condominium collapse and wanted a replacement card. Surveillance footage captured the woman ID'd as Medina spending $2,500 on the credit card, including a Versace handbag."Today they got what they deserved, and we're all much happier for it," Burkett said Wednesday.

3 suspects were arrested on charges of stealing identities of victims of the Surfside condo collapse to open fraudulent credit and debit cards

Crystal Cox/Business InsiderCredit cards are generally safer than debit cards, as long as you use them responsibly.<ul class="summary-list"><li>Using a <a href="https://www.businessinsider.com/category/debit-card">debit card</a> instead of a <a href="https://www.businessinsider.com/category/insider-picks-credit-cards">credit card</a> is a surefire way to avoid <a href="https://www.businessinsider.com/category/credit-card-debt">credit card debt</a>. However, it opens the door for a lot of headaches if your card is ever stolen.</li><li>Between building your <a href="https://www.businessinsider.com/category/credit-history">credit history</a>, protecting your <a href="https://www.businessinsider.com/category/checking-account">checking account</a> from unauthorized purchases, getting a few major consumer protections, and getting rewards, there are a number of reasons to use a credit card instead.</li><li>If you make sure to spend within your means and pay off your balance in full every month (personally, I pay it off every time I get a paycheck), you'll avoid paying interest fees, as well as debt.</li><li><a href="https://www.businessinsider.com/best-rewards-credit-cards" rel="nofollow">See Business Insider's list of the best rewards credit cards you can get »</a></li></ul>Credit card debt is something you should avoid - with <a href="https://www.businessinsider.com/paying-for-engagement-ring-2018-1" target="_blank" rel="noopener">rare exceptions</a> - but that doesn't mean that you should avoid using credit cards. In fact, there are a number of benefits to using them, including the chance to build your credit profile, and the opportunity to earn valuable rewards.The important thing is to use your credit card as if it were a debit card.That means not spending more money than you have, and not carrying a balance month to month by just paying the minimum amount or only part of your balance, which incurs interest fees the next month. Instead, you should pay the balance off in full every month, which not only helps you avoid interest, but also means that you don't end up overspending and winding up in debt.So why not just use your debit card to keep everything easier? There are actually a few reasons.<h2>To protect your bank account</h2>Credit cards offer more robust fraud protection and offer a degree of separation from your checking account, which serves as an added safety measure.Debit cards are connected directly to your checking account. Whenever you make a purchase - whether that purchase is processed as credit or as debit - funds are drawn immediately from that account and transferred to the merchant. In that way, it's like an electronic check.Read More: <a href="https://www.businessinsider.com/debit-vs-credit-rewards-fraud">I almost never use my debit card outside of ATMs for 2 important reasons</a>If a thief gets hold of your card - either the physical card, or just your information from it - and goes on a spending spree or makes a withdrawal, you lose the cash the person spends. That means money disappearing from your checking account. If you had a set amount in there earmarked for things like utilities, rent, tuition, or something else, you won't have access to that money. While most banks and debit card processors offer at least basic fraud protection, if not more, you may not get the cash back right away, particularly if a long investigation is required.With a credit card, however, money in your bank account isn't touched until you pay your statement. If someone steals your number and makes fraudulent charges, you can flag those charges for the card issuer, and you won't have to pay them - the card will be frozen - pending an investigation into the fraud. You don't have to worry about losing cash and the inconveniences associated with that, like losing the money for your rent.<h2>To earn rewards</h2>Although rewards debit cards used to exist, the Durbin amendment to the Dodd-Frank consumer protection act passed in 2010 limits the fees banks can charge merchants to process debit cards. Consequently, consumer use of debit cards at retailers is less profitable to card issuers, so those issuers have less reason to incentivize consumers to use them.Credit cards, however, remain profitable to banks, so they've invested more heavily in offering consumers a cut of those merchant fees in the form of rewards. Cards like the <a href="https://thepointsguy.com/card-details/chase-sapphire-preferred-card/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow">Chase Sapphire Preferred Card</a> offer 2x points on travel and dining and 1x point on everything else, while the <a href="https://thepointsguy.com/card-details/chase-freedom-unlimited/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow nofollow">Chase Freedom Unlimited</a> offers 1.5% cash back on all purchases.Between those, and <a href="https://www.businessinsider.com/best-current-credit-card-signup-bonuses">high sign-up bonuses</a> - the <a href="https://thepointsguy.com/card-details/chase-sapphire-preferred-card/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit">Sapphire Preferred</a> offers 60,000 points after you spend $4,000 within the first three months, and the <a href="https://thepointsguy.com/card-details/chase-freedom-unlimited/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow">Freedom Unlimited</a> offers $150 back after you spend $500 in the same timeframe - you can get lucrative rewards when you use credit cards instead.Just make sure to always pay off your full balance so that you don't end up in credit card debt, or paying interest. Even with a <a href="https://www.businessinsider.com/credit-cards-with-lowest-interest-rates">low APR</a>, the costs of interest fees will more than outweigh any rewards you can earn.<h2>To build your credit history</h2>Just about every adult has a credit profile, which is kept by credit reporting bureaus. This profile contains information about every loan you've applied for, held, and paid. All of that information makes up your credit score, which is a numerical representation of your credit profile.Your credit score is positively affected by things that show a history of using credit responsibly, such as a history of on-time payments, having held multiple accounts, not having too much debt, and having held access to credit for a long period of time. On the other hand, it's negatively affected by things like missing a payment or being late, or not having much history of holding credit.Read More: <a href="https://www.businessinsider.com/how-to-build-credit">The best way to build your credit is the same strategy people use to build wealth</a>When you use and pay a credit card every month, that adds another positive data point to your credit profile, which, in turn, helps build and raise your credit score. When it comes time to apply for a major loan like for a car or a mortgage, you'll be more likely to be approved at a low interest rate if you have a positive credit history. Using a debit card, on the other hand, doesn't affect your credit history at all.<a href="https://www.businessinsider.com/why-you-should-use-credit-cards-2018-1">Read more about how using a credit card - responsibly - affects your credit profile and score here.</a><h2>For better purchase and travel protections</h2>Many credit cards offer certain purchase and travel protections. For example, the <a href="https://thepointsguy.com/card-details/chase-sapphire-preferred-card/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow">Chase Sapphire Preferred</a> offers robust coverage, such as trip delay insurance- that covers your costs for things like hotels, clothing, food, and toiletries for up to $500 per person if your flight or other travel is delayed overnight, or more than 12 hours during the day. In the event of a dispute with a merchant, a credit card will also give you the ability to request a charge-back. That's when you dispute a charge, the credit card company investigates, and you don't have to pay for it until the investigation is finished - if your dispute is legitimate, the charge will be waived on your statement. An example of this is when passengers are <a href="https://www.businessinsider.com/flight-cancelled-refund-compensation-airline-bankruptcy" target="_blank" rel="noopener">stranded by an airline that goes out of business</a> - it's one of the only ways they can get their money back. Similarly, I once had to dispute a charge with an emergency plumber, when he charged me for work my landlord hadn't authorized. I got the difference in money back from my card company, and was only charged for the original work order (which my landlord reimbursed).Another offering is <a href="https://www.businessinsider.com/credit-card-purchase-protection-benefits-best-cards">purchase protections</a> - if something you buy is damaged, lost, stolen, or otherwise made unusable within 120 days of buying it, you'll be covered for up to $500 per claim (and up to $50,000 per account), as long as you used the card to buy it. The card also comes with extended warranty protection, which offers an extra year of coverage on eligible purchases that come with a manufacturer's warranty of three years or less.Debit cards generally don't offer similar protections, which means that you're better off using a credit card for your major purchases and travel.<h3><a href="https://thepointsguy.com/card-details/chase-sapphire-preferred-card/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow">Click here to learn more about the Chase Sapphire Preferred card »</a></h3><h3><a href="https://thepointsguy.com/card-details/chase-freedom-unlimited/?utm_source=referral&amp;utm_campaign=bi_credit_vs_debit" rel="nofollow">Click here to learn more about the Chase Freedom Unlimited card »</a></h3><ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/credit-cards">credit card</a> coverage</li><li><a href="https://www.businessinsider.com/best-airline-credit-card-comparison-delta-united-american">What's the best airline credit card?</a></li><li><a href="https://www.businessinsider.com/best-cash-back-credit-cards">The best cash-back credit cards</a></li><li><a href="https://www.businessinsider.com/southwest-credit-card-comparison-which-to-get">Southwest credit card review</a></li><li><a href="https://www.businessinsider.com/best-rewards-credit-cards">Best rewards credit cards</a></li></ul>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available. <h3>NOW WATCH: <a href="https://www.businessinsider.com/nintendo-winning-video-games-fastest-selling-console-2019-3">Nintendo Switch is the fastest-selling console of the current generation - here's why Nintendo is dominating video games</a></h3>

4 reasons why you should use a credit card instead of a debit card

This year in September, police arrested a student from Vadodara for illegally using credit cards of three American nationals to book air tickets. 
 
In March 2013, two top officials of an online shopping portal were arrested after almost 200 complaints were received from customers who said they paid for things they never ordered or received. 
 Like these, there are numerous examples to highlight a growing trend of frauds and scams related to online transactions, which are generally done by credit or debit cards. As per the ASSOCHAM-Mahindra SSG Report-2015, the number of cyber crimes reported in 2011 was 13301, which shot up to 300,000 in the year 2015. Of the reported cyber crimes, credit and <keyword id="3171349" type="UNKNOWN" weightage="20" keywordseo="debit-card-frauds">debit card frauds</keyword> topped the list and saw six-fold times increase over last three years. 
 
What should an online shopper do now? Stop shopping? Online shopping is very convenient but when we use are credit card online we expose ourselves to potential frauds. Here are some ways you can safeguard yourself from online frauds 
 
1. Choose your credit/debit card wisely: While choosing a card, it is important that you focus not only on the fees, credit limit, reward structure etc, but also on the security features of the card. Although the RBI has rules in place, it is important to be sure that your credit card issuer is also committed to customer’s safety. Often hackers hack into a bank’s website and steal customer’s card details to make fraudulent transactions. If the card company does not have proper security systems in place, it makes you vulnerable to frauds. 
 
2. Never store your credit card number on a website: Storing your credit/debit card number on a website exposes it to a lot of potential threats. Hackers try to use the information stored on the website. Typing same information again and again is a tedious task, especially for a website that you use regularly, but it is better safe than sorry. 
 
3. Use secure websites: There are numerous websites available for shopping. Before getting lured by special discounts, trendy designs and fast delivery promises, check for the security features of the website especially when making a transaction on a new website. Check the website URL, it should begin with “https” and there should be some indication on the website to ensure that it is a secure one, like the sign of a lock or a Verisign website. Generally all website mention the recommended security guidelines, mode of payment to be used etc, for the safety of the use. Read these carefully before using. 
 
4. Be careful with names: Do not follow a link that is sent to you in a promotional email. Often, miscreants create websites that have similar names with similar web-design and layout to trick consumers. The difference in name of the website can be minimal to notice and you may end up buying stuff from a dummy website. Type the name of the website yourself. 
 
5. Avoid public terminals: Using public terminals or transacting over a WI-FI network makes the user more vulnerable to credit card misuse. You can never be sure about the safety of a public terminal, if they have required safety features (spyware or malware) and who will use it after you. The information you enter can be hacked into and may also be available to other people using the terminal. 
 
6. Never enter Pin Number: Apart from having requisite safety guards on your computer/phone to prevent hacking, extra caution is required when using phones for online shopping. Never enter your PIN for online shopping. Online shopping requires CVV number and the transaction password that is sent to your phone. Be vary of sites that ask your PIN number. 
 
Whether it is the virtual world or the physical one, using your credit card with a few precautions go a long way in keeping it safe. Be cautious and do not become a statistic in the growing credit card fraud! 
 
(Rajiv Raj is the Director and Co-Founder of www.creditvidya.com) 
 
(Image: ThinkStock)

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