Indian Bank worried about Online Security - huh

Monday, May 12, 2008

Yes, according to a study conducted by ReadiMinds it seems yes the banks in India are concerned about online security but the question is what are they doing about it ? Recently in 15 days I came across 4 cases of online fraudulent fund transfers and majority of the time the mistake was from the banks end, I mean somewhere or the other the bank was coming in fault, for eq. When doing a Fund transfer from one bank to other in India you can use EFT, NEFT and RTGS. RTGS is quick transfer but the transfer amount should be above 1 Lac. Banks offer good security that if the you are doing a RTGS transfer you get a sms with authentication code and you need to enter that code and validate the transfer within 2 minutes or else the transaction will fail.

Now what if the intruder has already captured your password, he goes ahead and changes the mobile number to his own or to a dummy number he just bought for use and throw purpose, then he immediately transfers the money, he gets an alert on his secondary number and he authenticates the fund transfer and after a week he reverts back to your own mobile number and you come to long after the money is withdrawn and spent.

The mistakes bank did was, they didn't inform the old number about the change of mobile number by sending a sms, why did they just activate the new number ?

There are many frauds happening and Indian Banks need to do a lot to tackle security issues, the worst thing is most of the times it is an insider job, In one of the recent cases i have seen the fraud was done a sophisticated gang with the help of an insider.

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