RBI Asks People To Follow Safe Digital Banking Practices Amid Rising Cyber Frauds

The Reserve Bank of India (RBI) has issued a public notice asking people to follow safe digital banking practices to prevent any possible financial loss. The move comes in the wake of rising incidence of cyber frauds.
 
Observing that unscrupulous elements are defrauding people by using innovative modus operandi, including social media techniques and mobile phone calls, the RBI urged the members of public to take all due precautions while carrying out digital financial transactions.
 
"... the Reserve Bank cautions members of public to be aware of fraudulent messages, spurious calls, unknown links, false notifications, unauthorised QR codes, etc. promising help in securing concessions/ expediting response from banks and financial service providers in any manner," the banking regulator  said.
 
Fraudsters attempt to get confidential details like user id, login/ transaction password, OTP (One Time Password) as well as debit/ credit card details and other personal information. 
 
The RBI has highlighted some of the typical modus operandi being used by fraudsters like vishing, phishing, and remote access.
 
 "RBI urges the members of public to practice safe digital banking by taking all due precautions while carrying out any digital (online/ mobile) banking/ payment transactions. These will help in preventing financial and/ or other loss to them," the notice said. 
 
Vishing refers to phone calls pretending to be from bank/ non-bank e-wallet providers/ telecom service providers in order to lure customers into sharing confidential details in the pretext of KYC-updation, unblocking of account/ SIM-card, and crediting debited amount. 
 
Phishing means spoofed emails and/ or SMSes designed to dupe customers into thinking that the communication has originated from their bank/ ewallet provider and contain links to extract confidential details. 
 
By using remote access, fraudsters lure customer to download an application on their mobile phone/ computer which is able to access all the customers' data on that customer device.
 
 Fraudsters also misuse the 'collect request' feature of UPI by sending fake payment requests with messages like 'Enter your UPI PIN' to receive money. It is also to be noted that fake numbers of banks/ e-wallet providers on webpages/ social media and displayed by search engines.
 

User

  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder