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<ul><li>The government has warned about a new way <keyword id="19962622" type="General" weightage="20" keywordseo="scammers" source="keywords">scammers</keyword> are trying to obtain <keyword id="20189059" type="General" weightage="20" keywordseo="personal-information" source="keywords">personal information</keyword>.</li><li>Users have reportedly received an SMS asking them to update their PAN to unblock their <keyword id="20417750" type="General" weightage="20" keywordseo="bank-account" source="keywords">bank account</keyword>.</li><li>Here's everything you need to know about the <keyword id="22918614" type="General" weightage="100" keywordseo="fake-PAN-SMS" source="keywords">fake PAN SMS</keyword> and how to stay safe.</li></ul>Increased usage of the internet has also resulted in an increase in <keyword id="20025584" type="General" weightage="20" keywordseo="online-fraud" source="keywords">online fraud</keyword>. Scammers are finding new ways to fool people and steal from them. A new method has now been revealed, which preys on users with an account in <keyword id="19985316" type="General" weightage="20" keywordseo="India-Post-Payments-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="India Post Payments Bank" meta.hostid="261" meta.entityid="India Post Payments Bank">India Post Payments Bank</keyword>. According to a post by PIB Fact Check, several users have received an SMS which claims to be from India Post Payments Bank. However, the message is fake and is an attempt to steal user data. “This claim is #Fake. @IndiaPostOffice never sends any such messages. Never share your personal &amp; bank details with anyone,” PIB Fact Check said in its post on X. <div type="twitter" handle="PIBFactCheck" handlename="PIBFactCheck" favoritecount="0" retweetcount="0" id="1825494609881170290"></div> <h2>What is the fake PAN SMS?</h2> In the SMS, the user is warned that their India Post Payments Bank account has been blocked. It then asks the users to update their PAN to get their account unblocked. The user is then given a link, asking them to click on the link to update their PAN. <div type="Article" hostid="261" msid="111512587" title="Jio vs Airtel vs Vi recharge plans comparison – plan benefits and price comparison after tariff hike" mstype="2" mssubtype="0"></div> The link then redirects the user to a <keyword id="20182216" type="General" weightage="20" keywordseo="phishing" source="keywords">phishing</keyword> page, aimed at stealing user data such as their bank account login details to gain access to their account. Once you enter your bank account login details, they will be sent to the scammer. <h2>What is phishing?</h2>Phishing is a cyber-attack where attackers impersonate legitimate organisations or individuals to trick people into revealing sensitive information like passwords or credit card details. This is usually done through deceptive emails, messages, or fake websites. <h2>How to stay safe from phishing attacks?</h2>Here are some ways you can identify phishing attacks and stay safe: <ul><li>Verify the sender: Check the sender’s email address or phone number carefully. Phishers often use addresses that look similar to legitimate ones but have small differences.</li><li>Look for red flags: Be wary of unexpected messages, especially those requesting sensitive information or containing urgent or threatening language.</li><li>Verify before opening: Only open attachments from trusted sources. Phishing emails often contain malware disguised as legitimate files.</li><li>Add two-factor authentication: Enable two-factor authentication on your accounts. This adds an additional layer of security even if your password is compromised.</li><li>Contact directly: If you receive a request for sensitive information, verify the request by contacting the organisation directly through known and trusted channels.</li><li>Report phishing attempts: Report phishing emails to your email provider or the relevant authorities. This helps in tracking and stopping phishing schemes.</li></ul>SEE ALSO: <a href="https://www.businessinsider.in/tech/how-to/how-to-add-music-to-instagram-profile/articleshow/112732934.cms">You can now add music to your Instagram profile – here's how</a> <a href="https://www.businessinsider.in/business/auto/webstories/2024-tvs-jupiter-vs-honda-activa-6g-which-110cc-scooter-should-you-buy/slidelist/112730069.cms">2024 TVS Jupiter vs Honda Activa 6G – which 110cc scooter should you buy?</a> <a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9s-pro-vs-moto-edge-50-fusion-which-is-the-best-smartphone-under-25000/slidelist/112703633.cms">iQOO Z9s Pro vs Moto Edge 50 Fusion – which is the best smartphone under ₹25,000?</a>

Govt warns about fake SMS asking users to update their PAN – what it is and how to stay safe

<ul class="summary-list"><li>Hackers are breaking into some Ticketmaster users' accounts and transferring tickets to themselves.</li><li>Two concertgoers said it was shocking but they got their tickets back in time to attend their shows.</li></ul>In September, Vashti-Jasmine McKenzie noticed an event had mysteriously vanished from her Google Calendar. It was a reminder for an Usher concert in Dallas on October 5, synced with her Ticketmaster account.McKenzie opened her email to a shock: The night before, a stranger had broken into her account, accessed McKenzie's two tickets, which she had paid $550 for, and transferred them out of her account."If this happened in real life, if somebody stuck me up, it would be like they were robbing me," said McKenzie, a 42-year-old conference manager. McKenzie, a music fan who said she spent an estimated $10,000 on shows in 2024, ultimately got her tickets back and went to the show but remains critical of Ticketmaster.McKenzie isn't the only concertgoer who's suddenly been left ticketless. Similar incidents have been reported in <a target="_blank" href="https://www.nbclosangeles.com/investigations/concert-tickets-disappear-from-ticketmaster-customer-account/3546153/">Los Angeles,</a> <a target="_blank" href="https://www.newschannel5.com/news/newschannel-5-investigates/have-you-bought-tickets-thru-ticketmaster-recently-check-your-account-and-make-sure-theyre-still-there">Nashville</a>, and <a target="_blank" href="https://www.youtube.com/watch?v=Gy__VrjV-hA">Charlotte, North Carolina</a>. The playbook is typically the same: Ticketmaster customers purchase tickets to see their favorite artists, only to later receive an email saying their tickets were transferred out of their online wallets by an unknown hacker — and quickly claimed.These kinds of scams are just the latest in a series of headaches for the ticketing giant. Following a data breach earlier this year and pointed criticisms from major stars like Taylor Swift, the Justice Department (DOJ) announced in May that it filed an antitrust <a target="_blank" href="https://www.businessinsider.com/taylor-swift-ticketmaster-fiasco-doj-lawsuit-2024-5">lawsuit against Live Nation, </a><a target="_blank" class="" href="https://www.businessinsider.com/taylor-swift-ticketmaster-fiasco-doj-lawsuit-2024-5">Ticketmaster's parent company</a>, alleging that the company's "conduct is anti-competitive and illegal." Live Nation, worth about $28 billion as of November 8, has a tight grip on the live-entertainment industry. The DOJ said in its complaint that "through Ticketmaster, Live Nation controls roughly 80% or more of major concert venues' primary ticketing for concerts and a growing share of ticket resales in the secondary market."In response, Live Nation said the DOJ's lawsuit would fail to address fans' issues with ticket prices and their ability to purchase them.Still, experiencing the ticket-transfer scam firsthand has led McKenzie and at least one other customer to fear their purchases aren't secure.In October, Mika City, a 28-year-old data analyst from Grand Prairie, Texas, spent $400 on two tickets to the rapper Don Toliver's show in Houston. Two days after she purchased them, she received a 6:08 a.m. email from Ticketmaster saying that her tickets were being transferred to someone named "Floyd George."Just 39 seconds later, she received another email: "Floyd George" had accepted the ticket transfer, and the tickets had been removed from her account.All of that happened before City had even woken up — and despite the fact that she thought she had secured her account in June by changing her password.City was also able to recover her stolen tickets through Ticketmaster and attend the show, but she added that the experience was stressful."I am still scared right now that it'll happen again," City told BI.Even though Ticketmaster reinstated McKenzie's and City's tickets in time for their concerts, after Business Insider reached out for comment, the company refunded both of them for the original cost of their tickets. It did not respond to BI's other questions about account hacks and customer security.A Live Nation executive <a target="_blank" href="https://www.cbsnews.com/news/taylor-swift-ticketmaster-stubhub-eras-tour-ticket-thefts-2024/">told CBS News</a>, however, that the company limited transfers for Taylor Swift tickets to 72 hours prior to concerts, following online ticket thefts specifically targeting the Eras Tour. In some cases, Ticketmaster has also required two-factor authentication for ticketholders to make transfers. The Live Nation executive recommended Ticketmaster account holders have a unique password not used for any other platforms.<h2 id="37246d48-b4a5-40d5-8df9-aed7a1aa046d">Getting tickets back can be a harrowing experience</h2>After she realized the Usher tickets had been transferred out of her account, McKenzie said she called Ticketmaster and reported the incident to its fraud department but didn't immediately hear back.Two days after her call, the tickets reappeared in her account — with the same seats and at no extra charge. But it was enough to scare McKenzie about what would've happened if she hadn't caught the calendar switch-up.At the Usher concert, McKenzie added, she saw two women learn in real time that they were victims of a similar scam. They opened the Ticketmaster wallet on their phones at an entrance gate only to find they were gone, she said.City got her tickets back one day after they were transferred out of her account, a week before the concert. She said she called repeatedly to get through to Ticketmaster's fraud department, which told her that her case would be treated as high priority because of how soon her event was.For good measure, she also filed a complaint with the Better Business Bureau about her tickets being stolen, as well as a dispute with her bank. The BBB forwarded the complaint to Ticketmaster, according to screenshots of the online exchange City shared with BI. The company responded through the BBB a day after City had already recovered her tickets, saying that it would escalate her case.She figured she would have to rebuy tickets, she added, so was surprised and pleased when Ticketmaster reinstated the tickets."I was so shocked, because everybody else that I've seen has said it's taken forever, or they never got them back," City said.<h2 id="2ebc9e46-2f82-427e-97ca-26a6453af137">Ticketmaster's recent troubles</h2>In May, Live Nation said it was investigating a data breach that affected some users who had bought tickets in North America. The leaked information may have included customers' emails, phone numbers, encrypted credit cards, and other personal information, Ticketmaster said in a statement.The company said at the time that password information wasn't a part of the data breach and that customers' accounts were safe.Fans and artists alike have complained about how hard it is to buy tickets in the first place.In November 2022, <a target="_blank" href="https://www.businessinsider.com/taylor-swift-reaction-to-ticketmaster-eras-tour-debacle-2022-11">Taylor Swift publicly addressed Ticketmaster</a> after it announced that it was canceling the general sale for her Eras Tour after it exhausted its inventory during the presale."It's truly amazing that 2.4 million people got tickets, but it really pisses me off that a lot of them feel like they went through several bear attacks to get them," Swift wrote in a statement posted to Instagram.<div type="image" title="a person holds up a sign that says just say no, and the word ticketmaster with a line drawn through it, outside the us capitol" height="4590" width="6885" msid="115111815" hostid="261" sizebytes="708392"></div>Last month, <a target="_blank" href="https://www.businessinsider.com/ticketmaster-oasis-reunion-ticket-sales-uk-authorities-investigating-2024-9">Oasis fans in the United Kingdom were up in arms with Ticketmaster</a> after noticing a surge in ticket prices for the long-awaited reunion tour due to the company's model of adjusting prices based on demand. Outrage was so pronounced that a government antitrust regulator in the UK is looking into the company's practices.For now, many fans are stuck using Ticketmaster to see their favorite performers even if some worry about the security of their purchases.City told BI that even after getting her tickets back, she was still worried they would disappear from her account, even after changing her password again to protect them."If I didn't have to buy from Ticketmaster, I wouldn't," she said.

Hackers are stealing tickets from Ticketmaster customers' accounts. For many, the troubled platform is their only option.

<ul class="summary-list"><li>You can delete your X account by deactivating it on the X website or mobile app.</li><li>When you deactivate an X account, you have 30 days to reactivate it before permanent deletion.</li></ul>Whether you're taking a break from social media or just want to start fresh, sometimes you simply need to get rid of your X, formerly Twitter, account.If you're ready to say goodbye to the social media app, you can deactivate your account on the X website or mobile app for iPhone or Android.But there's more you should know about deleting X — like protecting your data, unlinking third-party accounts, and reusing your username or email.Read our complete guide first if you're thinking about deleting your X account.<h2 id="b7ff6b66-c8df-4aa5-ab2a-6caad2717367">How to delete your X account on iPhone or Android</h2><ol><li>Open the X app on your iPhone or Android.</li><li>Tap your profile picture in the top-left corner and select Settings and Support.</li><li>In the Settings and Support drop-down menu, click Settings and privacy.<div type="image" title="How to delete X" height="1236" width="1730" msid="115100480" hostid="261" sizebytes="22890"></div></li><li>Tap Your account at the top of Settings.<div type="image" title="How to delete X account" height="1241" width="1738" msid="115100501" hostid="261" sizebytes="50406"></div></li><li>Select Deactivate your account at the bottom of the page.<div type="image" title="How to delete X" height="1239" width="1734" msid="115100505" hostid="261" sizebytes="34626"></div></li><li>Scroll to the bottom of the page and tap Deactivate.<div type="image" title="How to delete X" height="1233" width="1726" msid="115100487" hostid="261" sizebytes="77596"></div></li><li>Enter your password and tap Deactivate one last time.</li></ol><div type="image" title="How to delete X" height="1280" width="1792" msid="115100490" hostid="261" sizebytes="16080"></div><h2 id="777541b1-2221-47b2-9b27-338d5eadb229">How to delete your X account on desktop</h2><ol><li>Go to the <a target="_blank" rel="noopener nofollow" href="https://twitter.com/home?lang=en">X website</a> and log in to your account.</li><li>In the menu on the left side of the X homepage, click the three dots in the bottom left corner.<div type="image" title="How to delete X desktop" height="1346" width="1884" msid="115100481" hostid="261" sizebytes="58762"></div></li><li>Select Settings and Support in the pop-up.<div type="image" title="How to delete X desktop" height="1338" width="1873" msid="115100482" hostid="261" sizebytes="63888"></div></li><li>At the top of the Settings menu, click Your account.<div type="image" title="How to delete X desktop" height="1296" width="1814" msid="115100495" hostid="261" sizebytes="56490"></div></li><li>Click Deactivate your account at the bottom of the menu.<div type="image" title="How to delete X desktop" height="1315" width="1841" msid="115100493" hostid="261" sizebytes="56930"></div></li><li>Click Deactivate at the bottom of the page.<div type="image" title="How to delete X desktop" height="1303" width="1825" msid="115100502" hostid="261" sizebytes="86736"></div></li><li>Enter your password and click the Deactivate button.<div type="image" title="How to delete X desktop" height="1339" width="1874" msid="115100497" hostid="261" sizebytes="43198"></div></li></ol><h2 id="a4f6dd93-975b-481c-b70d-7ceae4098988">How to delete the X app</h2>If you're not ready to delete your X account but want to take a break from the social network, you can delete the app from your device without deleting your entire account.<a target="_blank" rel="noopener" href="https://www.businessinsider.com/guides/tech/how-to-delete-apps-on-iphone">To delete the X app on an iPhone</a>, hold your finger down on the app icon and tap Remove App at the bottom.<div type="image" title="Delete X app" height="664" width="930" msid="115100499" hostid="261" sizebytes="16380"></div>A pop-up will appear, and you can click the Delete App option to delete the app. Alternatively, to move the app to your App Library, tap Remove from Home Screen.<a target="_blank" rel="noopener" href="https://www.businessinsider.com/guides/tech/how-to-delete-apps-on-android">To delete the X app on an Android</a>, hold your finger down on the app icon and tap Uninstall, or to hide the app, drag and drop it in your app drawer.<h2 id="7473785f-ff86-414a-9e66-ebe3652135cb">How to reuse your username or email on X</h2>When you delete your X account, your username is deleted along with it. If you want to reuse your username, then before you deactivate your account, change your username to something you don't mind being deleted.You can take the following steps before deactivating your account to preserve your current username or email address for future use.<ol><li>Open <a target="_blank" rel="noopener nofollow" class="" href="https://x.com/home">X</a> in a browser or in the mobile app and log in.</li><li>In a web browser or on mobile, click your profile picture in the upper left corner of the screen.</li><li>Choose the Settings and privacy option in the Settings and Support drop-down menu.</li><li>In Settings, select Your account, and then click the Account information option.<div type="image" title="Change X account name" height="1233" width="1726" msid="115100489" hostid="261" sizebytes="33990"></div></li><li>Click the gray arrow next to your username.<div type="image" title="Change X account name" height="1233" width="1726" msid="115100503" hostid="261" sizebytes="17222"></div></li><li>Update your username in the New section.<div type="image" title="Name change X account" height="1318" width="1846" msid="115100496" hostid="261" sizebytes="13658"></div></li><li>Click Done once completed.</li></ol><h2 id="69c9963c-88e0-47d5-a4ff-c54f869336ed">Unlink any third-party apps from your account</h2>Third-party apps can reactivate your account. To ensure that this does not happen, make sure that you unlink all of your third-party apps from your X account.<ol><li>Open <a target="_blank" rel="noopener nofollow" class="" href="https://x.com/home">X</a> in a browser or in the mobile app and log in.</li><li>In a web browser or on mobile, click your profile picture in the upper left corner of the screen.</li><li>Click on the Security and account access tab.<div type="image" title="Connected apps X" height="1217" width="1703" msid="115100488" hostid="261" sizebytes="50006"></div></li><li>Click on the Apps and sessions tab.<div type="image" title="Connected apps X" height="1222" width="1711" msid="115100483" hostid="261" sizebytes="33978"></div></li><li>In the pop-up window, select the Connected apps tab.<div type="image" title="Connected apps X" height="1274" width="1784" msid="115100485" hostid="261" sizebytes="18410"></div></li><li>You can view all of your connected apps in the list that appears (none will appear if you don't have any apps connected). If you have apps connected, you will be able to select each app and click Revoke app permissions.</li></ol><h2 id="8c7976d5-37ad-4f60-9e21-27cad2a75ec9">How to reactivate an X account</h2><ol><li>Open <a target="_blank" rel="noopener nofollow" class="" href="https://x.com/home">X</a> in a browser or in the mobile app and log in.</li><li>Log in to your deactivated account.</li><li>An X message will ask you to confirm you want to reactivate.</li><li>Your account will be restored, though it might take a few days for all your tweets and messages to reappear.</li></ol><h2 id="4e35577d-e28a-402f-919a-6250882f650a">Deleting tweets</h2>To delete a post, click the three buttons on the top right corner of the tweet and then tap Delete Post.<div type="image" title="Deleting X post" height="1230" width="1722" msid="115100484" hostid="261" sizebytes="40718"></div><h2 id="f07f78c9-fe9b-4305-859b-658fc18e5b93">Backups</h2>If you're weighing up whether or not you should leave X, you should consider backing up your tweets and other data in case you change your mind.Go to Settings and privacy, then Your account, and click Download an archive of your data.<div type="image" title="Back up tweets" height="1230" width="1722" msid="115100491" hostid="261" sizebytes="34134"></div>Then enter your username and password to request a ZIP file of your account information. You'll get a notification when it is ready to download.

How to delete your X account permanently in 7 steps

<ul class="summary-list"><li>Some real-estate scammers operate by transferring a home's deed away from its rightful owners.</li><li>The owner of a $137.5 million LA mansion says they're a victim of deed fraud and can't sell it.</li></ul>Spelling Manor — a 120-room mansion in Los Angeles with its own bowling alley and beauty salon, built by Aaron Spelling, the television producer behind "Beverly Hills 90210" and "Dynasty" — is one of the largest properties for sale in the country.It's been on the market for over 2 ½ years with a fittingly giant price tag: $137.5 million.Its owner must have been thrilled when Eric Schmidt — the former CEO and executive chairman of Google, with a net worth of $23 billion as of October 21 — expressed interest in purchasing it, as <a target="_blank" class="" href="https://www.wsj.com/us-news/a-scammer-tried-to-seize-graceland-is-this-137-5-million-l-a-mansion-next-a33d57a1">The Wall Street Journal reported earlier this month</a>.The issue, though, is that the owner, who operates anonymously behind a limited liability company called 594 Mapleton, can't sell it to him or to anyone else. (The Journal cited previous reporting that local agents believe the owner behind the LLC is a Saudi billionaire.)Spelling Manor's owner told the Journal through their lawyer that scammers filed a fraudulent deed with Los Angeles County earlier this year. Two people accused of the scam in a lawsuit told the Journal that they were the rightful owners. The ongoing legal battle over the mansion's ownership stands in the way of its sale. Similar fights over who really owns homes and land are playing out across the country. Emboldened by AI technology and immense amounts of public information, some scammers have become bolder in their deed theft — also called title theft — attempts, real-estate fraud experts said. Their targets can range from mansion dwellers to owners of more modest homes and parcels of land.A <a target="_blank" class="" href="https://www.alta.org/business-operations/research-initiatives-and-resources/critical-issue-studies/seller-impersonation-fraud-study">May 2024 study</a> by the American Land Title Association and economic research firm NDP Analytics with 783 responses found seller impersonation fraud — when someone fakes the identities of property owners with the aim to sell their properties — is fairly common. Twenty-eight percent of title insurance companies experienced at least one seller impersonation fraud attempt in 2023; 19% saw attempts in April 2024 alone.<a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.ic3.gov/AnnualReport/Reports/2023_IC3Report.pdf">The FBI's Internet Crime Complaint Center</a> doesn't specifically track deed fraud. However, in 2023, it processed a total of 9,521 real-estate-related complaints — which it defines as a loss of funds from a real-estate investment — resulting in more than $145 million in losses.And while Spelling Manor is a conspicuous example because of its size and value, anyone who owns a house or a piece of land could have their deed transferred away without their knowledge.<div type="image" title="An aerial view of a mansion in Los Angeles." height="1678" width="2500" msid="114472708" hostid="261" sizebytes="581436"></div>"Maybe this brings awareness, and people start to realize that if it can happen to them, it can happen to anybody," Tyler Adams, the CEO of wire-fraud-protection company CertifID, told Business Insider. "But I hope it's not the reverse and people think, 'Fraudsters go after the big bucket. They'll never come after my $200,000 home.' Not the case. The way worse problem is in a much smaller market."<h2 id="d0e0ec17-48c1-4c0d-8bc8-c712328c7078">If scammers can fake a deed, they get a house — or maybe a mansion</h2>Victor Petrescu, a Miami-based attorney at the law firm LKLSG, said he handles two or three title fraud cases a year.He told BI he recently represented a homeowner whose identity was falsified "on a deed in order to convince someone to wire sales proceeds to a bank account.""I know it's still happening," he added.In the Spelling Manor case, Adams said the alleged deed fraud might not be a tactic to receive the full sales price of the home but to extort the rightful owner for a smaller payday in order to get the home returned to them.Adams said a scammer might think, "If we mess with the deed enough to the point where the lawful owners can't sell it, could we convince them to send us some crypto somewhere to get it back?"An attorney for Spelling Manor's owner, 594 Mapleton LLC, its listing agent, and the LA County District Attorney did not respond to requests for comment.Deed fraud has also complicated the ownership of Graceland, the Memphis, Tennessee, estate that belonged to Elvis Presley and remains in his family.<div type="image" title="side-by-side of Graceland mansion and Riley Keough" height="1080" width="1440" msid="114472712" hostid="261" sizebytes="131736"></div>Earlier this year, a company called Naussany Investments and Private Lending said it owned Graceland and announced plans to auction off the property. Presley's granddaughter, <a target="_blank" href="https://www.businessinsider.com/legal-battle-elvis-graceland-foreclosure-riley-keough-over-2024-5">Riley Keough, sued the company</a>, accusing it of using forged documents to claim ownership, and won the case.In August, a woman from Missouri, <a target="_blank" class="" href="https://www.businessinsider.com/arrest-plot-steal-graceland-from-elvis-presley-kin-riley-keough-2024-8">Lisa Jeanine Findley, </a><a target="_blank" href="https://www.businessinsider.com/arrest-plot-steal-graceland-from-elvis-presley-kin-riley-keough-2024-8">was federally charged</a> with fraud and identity theft in the plot to steal the historic property.A spokesperson from the Graceland estate did not immediately respond to a request for comment. An attorney for Findley, who was indicted on charges of mail fraud and identity theft, also did not respond to a request for comment.Adams said the first step in fighting this type of fraud is to strengthen the verification process for recording documents."I think that collectively as a society, what we need to do is institute better identity verification for all of these things, so when somebody is filing a new deed at a county clerk's office, that office should have good identity-verification practices to make sure that the person who's filing that deed is who they say they are," Adams told BI."Because at the root of all of these scams is an identity problem," he added.<h2 id="4e9cc880-ea28-4f57-8c7c-acd021759a77">Deed fraud has also frustrated regular property owners</h2>Scammers aren't just targeting the big fish.In 2023, William Gordon's <a target="_blank" href="https://www.businessinsider.com/mans-arizona-lot-sold-for-200000-without-him-listing-it-2023-8">vacant land in Arizona was sold to someone else without his knowledge</a>.Gordon had purchased the property in 1999 for $76,500, but at some point, someone submitted a new deed to the Pima County recorder, using Gordon's name but changing the state from Arizona to Texas.Gordon only realized the ownership transfer had taken place when his title company sent him a letter congratulating him on the sale of his property for $200,000.A recorder's office is essentially like a library for property-related documents. Gabriella Cázares-Kelly, the Pima County recorder where Gordon's land is located, told BI in 2023 that the recorder's job is to record documents, not verify them."We rely on title companies, on notaries — which is why they are required to have insurance — because it is ultimately up to those companies to have the safeguards to ensure that they're dealing with the correct property," she said.Gordon eventually got his property back after the title company signed a quitclaim deed that relinquished ownership, giving him his land back. The mess cost him about $9,000 in legal fees, he said.Petrescu said the owners of properties worth a fraction of the price of Spelling Manor are more likely to experience deed theft."With these smaller transactions, a lot of closing agents are just trying to close these on a volume basis," Petrescu said. "It may be easier to take advantage of someone who's not crossing their t's, dotting their i's, because they're just juggling 10 files that day."In 2022, a lot in Fairfield, Connecticut, was <a target="_blank" class="" href="https://www.businessinsider.com/property-fraud-lawsuit-fairfield-connecticut-2023-8">sold after a fraudster impersonated its owner,</a> a doctor named Daniel Kenigsberg. He discovered the sale after a friend told him that someone was building a home on his once-empty parcel of land.A "Daniel Kenigsberg" of Johannesburg had signed documents to try to steal the property, according to court documents viewed by BI."The real problem is people who are average, normal people that finally saved up enough money to buy a house and are getting ripped off by a scam that they weren't prepared for," Adams said. "That's sort of the sad part here — that those are the people that are going to be impacted a lot more."<h2 id="5586bcc0-2778-4ffa-97b4-fc733e25cfd6">AI tools make it easier for fraudsters to scam anyone</h2><a target="_blank" href="https://www.businessinsider.com/ai-phishing-scams-automation-detection-2024-6">Scammers increasingly rely on artificial intelligence</a> to pull off their cons, whether the medium is the phone, <a target="_blank" href="https://www.businessinsider.com/fresno-officials-should-notice-phishing-scam-jury-trial-court-california-2024-6">phishing by email</a>, or a title transfer with a local record keeper."Unfortunately, their techniques evolve with technology," Marty Kiar, the property appraiser in Broward County, Florida, told BI.Kiar said that in September, someone contacted a title company saying they had a vacant lot to sell in Hallandale Beach.When the title company pushed for identity verification, the purported seller offered to do a video call that turned out to be a <a target="_blank" class="" href="https://www.businessinsider.com/guides/tech/what-is-deepfake">deepfake</a> or AI-generated video playing on a loop showing an image of a missing woman from a different state, <a target="_blank" class="" href="https://www.nbcmiami.com/responds/title-fraud-scam-ai-artificial-intelligence-deepfakes/3423150/">NBC Miami</a> reported.If the title company hadn't pushed for proof of the purported seller's identity, they "very easily could have gotten away with this scam," Kiar said."It was all AI imagery," he said. "What I'm really fearful of is, as technology evolves more and more and more, I wouldn't be surprised if we see this more and more and more."One of AI's hallmarks is its ability to learn and digest enormous amounts of information. Property data is readily available to the public, and in some states, a simple search can unearth appraisal data, blueprints, transaction records, and even pictures of executed deeds. With AI, fake documents could be created faster and more realistic-looking."They're just creating these AI models that are reading all of the public records and public data that they can possibly get their hands on, that are then creating a means by which they can manipulate that information," Adams said. "So it's like the ingestion is now automated because of AI models, and then the impersonation is a lot more sophisticated."An AI tool might be able to recognize a vacant property in a database faster than a human could or identify homes without mortgages attached to them (which could mark them as targets for a refinancing scheme).The amount of personal information available to fraudsters also makes impersonation easier.Kiar said his office has handled hundreds of fraud cases. Only two of those cases so far have involved AI, but he remains concerned that more are on the way."The criminals are very, very smart," he said. "They're going to use the most up-to-date technology to try to scam somebody out of their property."

Scammers are stealing homes from under their owners' noses. AI is making it scarily easy.

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<ul class="summary-list"><li>Brittany Patterson's 11-year-old son walked to a local dollar store alone without telling her.</li><li>A stranger called the cops, concerned he might be in danger, though he said he was OK.</li></ul>This as-told-to essay is based on a conversation with Brittany Patterson, 41, a real-estate broker and mom of four from Fannin County, Georgia. It has been edited for length and clarity.My cellphone rang at lunchtime on October 30, 2024, near the end of my 14-year-old son Evander's <a target="_blank" href="https://www.businessinsider.com/doctor-shares-tips-for-being-heard-during-medical-visits-2023-3">doctor's appointment</a>. It was the police.The sheriff's deputy asked if I knew that my youngest son, Soren, who was about to turn 11, was alone in our downtown area. "No," I said.It turned out he'd walked just under a mile from our house in the woods where he's homeschooled. The deputy wanted to know why he was there, how he got there, and why I didn't know where he was.<h2 id="80f69f87-6b5d-48bc-b647-b92c6dab7a51">The police brought him home</h2>I was annoyed with Soren for going into town without telling me or other family members first, but I wasn't panicking. I told her that I knew the roads and that he was mature enough to walk there without incident.The deputy said it wasn't safe because it was a <a target="_blank" class="" href="https://www.businessinsider.com/most-dangerous-roads-highways-world-2021-6">dangerous road</a>. She said all kinds of things could have happened, including being kidnapped.Fifteen minutes later, as I rushed home from the doctor's, my dad called to say the police had dropped Soren off. My mom and I chastised him for leaving the house without telling us where he was going and how long he was going to be.We discussed what had happened. Soren was supposed to accompany me to the appointment, but he wasn't there when I called out to say it was time to go.I figured he decided that he wanted to stay. I wasn't concerned because I knew we'd be back in about an hour and a half.We live on a rural 16-acre compound that includes our house, which contains an in-law suite for my dad, who's always home. My mom and sisters live in a building that's a three-minute walk away. The kids — we also have two daughters, Enola, 16, and Selah, 12 — always go back and forth between the properties.<h2 id="f4bd4cd2-f9dc-4501-a63c-168e5e0c346e">We grew up with a lot of independence</h2>My husband Josh works as a superintendent of schools in Montana. We were both <a target="_blank" class="" href="https://www.businessinsider.com/us-mom-lived-in-denmark-compares-american-and-nordic-parenting-2024-10">raised with a lot of freedom and independence</a>. We're free-range parents who want the same kind of life for our children. They're allowed to go back into the woods and dig and build forts. They ride their dirt bikes or walk over to the neighbor's house, where there's a nice flat spot to play basketball.Soren told me he'd gotten bored that lunchtime and just wanted to go for a walk. He walked into our small town of 370 people along the verge of the road — which has a speed limit of 25 to 35 miles an hour. He wandered through the gas station to say hi to his friend's grandma, who works there.She wasn't around, so <a target="_blank" class="" href="https://www.businessinsider.com/worked-new-dollar-general-started-falling-apart-before-it-opened-2023-11">he went into the Dollar General</a>. He was on his way back home when a lady <a target="_blank" class="" href="https://www.businessinsider.com/abandoned-post-offices-photos-history-2020-8">outside the post office </a>called him over to her car.<div type="image" title="A family posing inside a giant lighted holiday ornament." height="2268" width="3024" msid="115270349" hostid="261" sizebytes="408012"></div>"She asked if I was OK, and I said I was," Soren told me. She asked him who his mom was, and he told her my name. Then he got a little nervous — he didn't feel like he should be talking to her — and just walked away. I guess that, at some point, she called the police.I didn't fuss at Soren for walking to the Dollar General because I think that's fine. I fussed at him for not letting me know that he was going when leaving the property. It was a communication thing. He apologized, and we moved on with the afternoon.<h2 id="f0d5bd22-611e-4ef4-ae59-71964716e3ab">I was arrested</h2>Around 6:30 p.m., the deputy sheriff and another officer knocked on our door.I opened the door and held my finger up, asking if they could give me a moment to end my phone call with my client. "You need to step outside now," the deputy said. They asked me to turn around and put my hands behind my back. Soren was sitting right there watching this whole thing.They said that I was under arrest on a charge of reckless conduct and took my phone.At the station, they fingerprinted me. They stripped me down and made me change clothes into an orange jumpsuit. They scanned my body and took my mug shot.I was only in there for an hour and a half. My mom and sister paid $500 for me to be <a target="_blank" class="" href="https://www.businessinsider.com/date-asked-me-to-post-bail-for-him-2023-9">released on bail</a>, and I was back home by 8:30 p.m.On Halloween, a case manager from the Division of Family and Children Services visited our home and spoke to the kids, my mom, my sister-in-law, and my dad.<h2 id="c1c0be20-a38f-43bc-a764-b12a29bf4e97">I was asked to sign a safety plan</h2>The next day, I contacted David DeLugas, the founder of <a target="_blank" rel="nofollow noopener" href="https://urldefense.proofpoint.com/v2/url?u=https-3A__parentsusa.org_&amp;d=DwMFaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=AhsXuq61LSf9ONOz2FqVCWNi_6wlXzjX7EkJk9i4a_M&amp;m=uGEjrCTYW0kC3XPjlZTDSnHAlmwgqqqehpLIb1H6ER4yldng9J9kwNCirDnhMg67&amp;s=1DHhL3QqSmE0g1NOy-dcq9GymTkkx9R7gbqUWGhjy5E&amp;e=">ParentsUSA,</a> a nonprofit that often provides pro bono legal support to parents wrongly accused of child neglect.The case manager texted me on November 5 because she wanted to stop by to go over a so-called safety plan. It required me to delegate a "safety person" — presumably my mom — to be a "knowing participant and guardian" and watch over the children when I wasn't there. Under her supervision, I also needed to <a target="_blank" class="" href="https://www.businessinsider.com/teens-tracking-app-locations-not-stalking-good-parenting-2024-2">download a tracking app </a>onto Soren's phone so I could monitor his location.DeLugas, an attorney, explained the pros and cons of me signing — or not signing — the safety plan.I decided that it was better not to sign it. I knew the potential risk — that the deputies could push the issue and maybe even try to <a target="_blank" class="" href="https://www.businessinsider.com/mom-had-kids-taken-away-after-a-misdiagnosis-2022-6">have my children removed from my home</a> — so it's scary.But I feel it's more important to stand up for what we believe in. My kids are all supportive of that decision because we've talked about everything that's been going on. We know the maximum punishment could be a $1,000 fine and up to a year in jail. DeLugas is helping us dispute the charges.Meanwhile, friends and family have said they're concerned because they sometimes leave their kids alone at home or their kids go out for walks like Soren. They wonder now if they'll have cops show up because of it.None of us wants the government telling us how to raise our children.Editor's note: Business Insider verified Patterson's account through documents. We contacted the Division of Family and Child Services in Georgia and the assistant district attorney handling Patterson's case for comment on whether the charges are being dropped. They have not yet responded. The Fannin County Sheriff's Office said it did not comment on pending cases.

My 11-year-old walked less than a mile away from home. I was arrested and charged with reckless conduct.

<div type="image" title="The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books." agency="ANI" msid="114778648" hostid="261" caption="&amp;lt;p&amp;gt;The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books.&amp;lt;/p&amp;gt;"></div> Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of <keyword id="113684" type="General" weightage="20" keywordseo="microfinance" source="Orion">microfinance</keyword> and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, IndusInd Bank set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e. an NPA, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, RBI, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and <keyword id="20117932" type="General" weightage="20" keywordseo="navi-finserv" source="keywords">Navi Finserv</keyword> from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending instalments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honour any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its gross NPA for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. IDFC Bank’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in <keyword id="6051027" type="General" weightage="20" keywordseo="Unsecured-loan" source="Orion">unsecured loan</keyword>s, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. <keyword id="6376194" type="General" weightage="20" keywordseo="kotak-mahindra" source="Orion">Kotak Mahindra</keyword> Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical <keyword id="19897820" type="General" weightage="20" keywordseo="bollywood" source="keywords">Bollywood</keyword> headmaster who runs his dominion with an iron fist. However, that's a story for another day. Do you have a topic in mind you'd want a simpler explanation for, or insights or personal experience to share on personal finance and more? Contact us at businessinsider@timesinternet.in.

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

The <keyword id="19949639" type="General" weightage="20" keywordseo="Rupee" source="keywords">rupee</keyword> opened on a flat note against the <keyword id="19949640" type="General" weightage="20" keywordseo="US-dollar" source="keywords">US dollar</keyword> in early trade on Tuesday, weighed down by a muted trend in domestic equities and the strength of the <keyword id="20563045" type="General" weightage="20" keywordseo="American-currency" source="keywords">American currency</keyword> in overseas markets. <keyword id="20024982" type="General" weightage="20" keywordseo="Forex-traders" source="keywords">Forex traders</keyword> said the US dollar strengthened due to increased demand from oil importers and stronger-than-expected economic data from the US. Moreover, rising crude oil prices also weighed on the local unit. At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.49 against the American currency and touched 83.50 in initial trade. On Monday, the rupee settled for the day lower by 10 paise at 83.50 against the US dollar. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords">Reserve Bank of India</keyword>'s positive economic outlook, with solid growth and unchanged inflation projections, suggests that there is less room for any early cuts amid prospects of rising inflation. This is likely to benefit the rupee from a favourable interest rate differential, said CR Forex Advisors MD Amit Pabari. Further, Foreign Institutional Investors (FII) have resumed their buying. FIIs were net buyers in the capital markets on Monday, as they purchased shares worth Rs 2,572.38 crore, according to exchange data. Moreover, anticipated inflows such as Reliance Infrastructure raising USD 350 million, SpiceJet planning to raise USD 250 million, and Clix Capital aiming to raise USD 600 million are likely to benefit the rupee, Pabari said. Given these factors, the rupee is expected to swing within a range of 82.90 to 83.70, he added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 105.12, lower by 0.02 per cent. Brent crude futures, the global oil benchmark, fell 0.20 per cent to USD 81.47 per barrel. On the domestic equity market, the 30-share BSE Sensex was trading 155.45 points, or 0.20 per cent lower at 76,334.63 points. The broader NSE Nifty was down 33.25 points, or 0.14 per cent, to 23,225.95 points. SEE ALSO:<a href="https://www.businessinsider.in/tech/news/ios-18-announced-with-apple-intelligence-improved-privacy-controls-customisable-home-screen-and-more/articleshow/110883233.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/ios-18-announced-with-apple-intelligence-improved-privacy-controls-customisable-home-screen-and-more/articleshow/110883233.cms" target="_blank">iOS 18 announced with Apple Intelligence, improved privacy controls, customisable home screen and more</a><a href="https://www.businessinsider.in/tech/news/apple-vision-pro-to-be-available-in-nine-new-countries-but-india-is-not-one-of-them/articleshow/110883439.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/apple-vision-pro-to-be-available-in-nine-new-countries-but-india-is-not-one-of-them/articleshow/110883439.cms" target="_blank">Apple Vision Pro to be available in nine new countries, but India is not one of them</a><a href="https://www.businessinsider.in/stock-market/webstories/ixigo-ipo-now-open-price-band-to-risk-factors-all-you-need-to-know/slidelist/110867238.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/ixigo-ipo-now-open-price-band-to-risk-factors-all-you-need-to-know/slidelist/110867238.cms" target="_blank">Ixigo IPO now open – Price band to risk factors, all you need to know</a>

Rupee opens flat against US dollar in early trade

Mumbai: The rupee slipped 1 paisa to an all-time low of 84.40 against the US dollar in early trade on Wednesday, as persistent <keyword id="20520117" type="General" weightage="20" keywordseo="foreign-fund-outflows" source="keywords">foreign fund outflows</keyword> and a muted trend in domestic equities weighed on the local unit. Forex traders said the USDINR pair has shown significant volatility in recent sessions, with the rupee inching closer to its all-time low of 84.40. This downward pressure is largely driven by global factors, particularly the Dollar Index's strengthening. At the interbank foreign exchange, the rupee opened at 84.40 against the greenback, registering a fall of 1 paisa over its previous close. On Tuesday, the rupee fell 1 paisa to a new lifetime low of 84.39 against the US dollar. "It appears that the rupee has established support around the current levels, with depreciation limited near 84.50," CR Forex Advisors MD Amit Pabari said. Pabari further added that the RBI stands tall as the depreciation in the rupee seems to be limited as the <keyword id="19899810" type="General" weightage="100" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) continues to sell the dollars to protect the sharp depreciation. "For the 5th consecutive week, India's forex reserves declined, possibly due to RBI selling the dollars. Currently, the forex reserves of India stand at USD 682 billion down from the recent all-time high of USD 704 billion," he said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.04 per cent at 105.98. Brent crude, the global oil benchmark, rose 0.25 per cent to USD 72.07 per barrel in futures trade. On the domestic equity market front, Sensex was trading 210.66 points, or 0.27 per cent lower, to 78,464.52 points. The Nifty fell 100.45 points, or 0.42 per cent, to 23,783.00 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 3,024.31 crore, according to exchange data. On the macroeconomic front, retail inflation breached the Reserve Bank's upper tolerance level, soaring to a 14-month high of 6.21 per cent in October mainly on account of rising food prices. Inflation based on the consumer price index (CPI) was 5.49 per cent in September and 4.87 per cent in the year-ago month. India's industrial production expanded by 3.1 per cent in September after recording a contraction in the preceding month, as all three major segments -- mining, manufacturing, and power generation -- showed improvement. However, the growth in the Index of Industrial Production (IIP) during the month was lower than 6.4 per cent registered in September 2023.

Rupee falls 1 paisa to all-time low of 84.40 against US dollar in early trade

<div type="image" title="In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Or, if it leaves the rates unchanged, your EMIs wont budge one bit" msid="114284206" hostid="261" caption="&amp;lt;p&amp;gt;In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Or, if it leaves the rates unchanged, your EMIs wont budge one bit&amp;lt;/p&amp;gt;"></div> On September 18, 2024, the <keyword id="19951097" type="General" weightage="20" keywordseo="us-fed" source="keywords">US Fed</keyword> delivered a jumbo-sized surprise to the global economy. Not only did they trim their interest rates by a massive 50 basis points to bring their yields down to 5%, but also hinted at further rate cuts in the upcoming months. This move from the fed and several other central banks globally had pushed expectations high for a similar rate slash closer home, from the <keyword id="19899808" type="General" weightage="100" keywordseo="rbi" source="keywords">RBI</keyword> this month. But governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword>, in a “picture abhi baaki hai” moment, decided to hold the repo rates here steady, leaving them unchanged at 6.5% for the record 10th straight time. Although, he did tinker with the policy stand, changing it from “rate cuts are absolutely off the table” to a more accommodating “we’re okay with bringing down the rates, if needed”. This, rather neutral, stance from India’s financial custodian sparked hopes for a rate cut in December this year. However, the stubborn <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword> levels in September have again dented such hopes. As consumers, you may be wondering what all the hullabaloo this is about, since it hardly makes a difference to your regular financial routine. Well, the majority of both economic growth and inflation is closely connected to this policy stance from the central bank and it does have a rather indirect effect on both our earnings and spending. But more directly, it would have clear implications for those looking to own a house. Even the slightest modification of interest rates, or the lack of it, influences the <keyword id="19916018" type="General" weightage="20" keywordseo="emi" source="keywords">EMI</keyword> you pay significantly. So, all aspiring homebuyers, is this the right time to take out a loan and buy a house? Can you expect a rate cut anytime soon, and what will that mean for your home-owning dreams? We lay it out. <h2>What’s the connection?</h2>You see, buying a house is no small feat, at least financially. The task becomes even more herculean if you are scouting for your own roof in cities like Delhi, Noida, Bangalore or Mumbai where, as Circuit from Munnabhai says, “room shuru hote hi khatam ho jata hai”. Naturally, you’ll have to take a <keyword id="6354730" type="General" weightage="20" keywordseo="Home-loan" source="Orion">home loan</keyword> from the bank. Don’t be mistaken, the bank won't give you a loan that covers 100% of the value of the property you want to own. Rather, your loan amount will be equivalent to a certain percentage of the property’s total value. RBI’s guidelines on this are pretty clear: <ul><li>If your loan amount is up to Rs 30 lakh, you can get a loan worth 90% of the property’s value.</li></ul><ul><li>If the loan amount is between Rs 30 lakh and Rs 75 lakh, you are eligible for a loan worth 80% of the property’s value. </li><li>If you are taking a loan of more than Rs 75 lakh, your loan amount will be equivalent to 70% of the property’s value. </li></ul>Now assuming that you have the money, it's all about paying back the principal amount, but not without a little (read hefty) interest added on top. See, when you’re taking a home loan, you are actually signing up for a long-term, even multi-decadal financial commitment, which will unfailingly present itself to your bank accounts and finances every single month, in the form of EMIs, or equated monthly instalments). When you take a home loan, you can choose to pay the interest in two ways (talk about choices!). One is that you decide to keep a fixed rate of interest throughout the tenure of your home loan. So, if you opt for a 25-year fixed-rate home loan at the rate of 8.8% p.a., you’ll have to pay interest at this rate for the next 25 years, till your entire loan is paid off. Yes, you can go backsies and switch to a floating-rate home loan by paying a fee. Floating, as the name suggests, means that your interest rate is not set in stone. But starting October 2019, when it comes to a floating interest rate home loan, your payable interest and EMIs are directly impacted by any changes in <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword>, which were left unchanged by RBI this time around. Why are these two so chummy, you might ask. Well, <keyword id="173069" type="General" weightage="20" keywordseo="Home-loan-interest" source="Orion">home loan interest</keyword> rates are a sum of two things: <ol><li>Repo Rate (the rate at which RBI lends money to banks)</li><li>Operational cost + margins</li></ol>Any plus or minus in this equation would send your home loan interests tanking, or skyrocketing. Vivek Iyer, Partner, Grant Thornton Bharat explains that any change in the repo rates impacts the cost of funds and thereby the home loan interest rates. “When the interest rates are expected to reduce, the corresponding impact will be in the form of a reduced EMI. Home loan borrowers should always try to borrow at a floating rate when interest rates are expected to reduce and at a fixed rate when the interest rates are expected to increase. This minimizes the outflow in the form of EMIs that the home loan borrowers will experience”, he continues. So, no change in repo rates means no change in your home loan interest payout and no financial relief whatsoever. A rate cut, which most experts are anticipating will start this December, would mean your EMI payments come down, and your wallet might save a little more. But there’s also a chance of an UNO reverse happening. In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Consider this. You took a floating interest rate home loan worth Rs 50 lakh in January 2022 at 8% p.a., for a period of 20 years. This brings your total monthly EMI to Rs Rs 41,822. But, as luck would (or won't) have it, RBI raised the interest rate by 250 basis points between May 2022 and February 2023, bringing it to its current status of 6.5%. Some back-of-the-envelope calculations suggest that now, your home loan interest payout will also rise by a hefty 2.5%, taking the total to 10.5%. In other words, you’ll have to dish out Rs 49,919 per month as EMI. Now, won't you heave a sigh of relief if the RBI were to bring down the interest rate by say, even 50 basis points, or 0.5%? Agreed, your EMI will come down just marginally, to Rs 48,251. But look at this over a 20-year period, and you’ll see how big the difference is. <h2>Are rates set to change anytime soon?</h2>Generally, RBI hikes the repo rates if it sees inflation spiralling out of control. Then, in a bid to reduce consumer spending, it raises interest rates to make borrowing expensive. But when the apex bank sees sluggish consumption in the economy, inflation in control and wants to boost spending, it slashes down on interest rates, making it more lucrative for people to borrow. As of now, most experts are not anticipating any changes in the interest rates anytime soon. This means home loans are not getting cheaper anytime soon. The CPI data, which came out yesterday, saw inflation rise to 5.49% in September, compared to 3.65% last month. Food and beverage prices jumped to a four-month high of 8.36% in September, as opposed to a 5.3% rise in August. So a rate cut seems a no-go at the moment! Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities explains that the RBI had probably expected a hardening of inflation and that's why it chose to hold on to the rates in the monetary policy announcement last week. “Now, it seems that RBI will take a cautious stance going ahead and will not be in a hurry into rate cuts like its global peers”, he added. In all this, one thing is clear, in the grand movie of the Indian economy, the RBI has chosen stability over drama. And just like in every good Bollywood film, we're left wondering what twist the sequel will bring. Until then, it might be “The End" for rate cuts, but the show must go on for the Indian economy!

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