Banking Frauds: How should you protect your money?

Do you know that Indian banking customers have lost over Rs.228 crores to banking frauds (debit card and net banking) last year? According to news reports, over 52,000 cases of bank fraud have been reported as of December 2019. This has resulted in Indian users losing Rs. 228 crores during that period.

Online Banking Frauds: Here is how to protect your money

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Out of the 52,000 cases reported, Maharashtra accounted for 42 percent of the total number of fraud cases. 

Banking frauds have grown by over 60 percent in the last 12 months. With India now using mobile as well as physical cards for payments, the chances of frauds might go up in the near future.

So, people understand that with the ease and convenience of doing digital transactions comes a lot of unwanted risks.This could pose a threat to all your important financial information.

The easiest and most effective way to ensure that you are not a victim to online banking frauds is by educating yourself. Here’s how to do that.

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What to do after a fraud?

Once you know that someone has defrauded you, contact your bank right away. You should make a formal complaint with the bank.You need to call up the customer service number to block the card or your bank account right away. You might also need to file a complaint at your nearest police station.This is for debit card, credit card, net banking or online shopping frauds. A FIR must be recorded in the nearby police headquarters as it were. On the off chance that police will not document a FIR, you can file a suit. You don’t have to approach the CyberCell on your own. You can document a FIR in the nearby police headquarters and the case will be sent by the police headquarters to the Cyber Cell.

However, before filing your complaint, you need to make sure that you have the documents related to the complaint. These will include bank statements of your bank account, any messages related to the fraud, your identity proof, address proof or any other document that you think is relevant. There are a few phony apps in the digital world. If there was fraud through an app, you will need the screenshot of the app and details of the location from which you downloaded it.

Having educated the bank, according to the RBI rules, the resolution needs to be done within 90 days of making the complaint. Banks need to give back the money or reverse the fraudulent electronic transaction to your account within 10 working days from the date of notice by you. 

Also read: Online banking frauds: Beware of your liability

How to protect yourself from such banking frauds? 

First, never reveal your financial details such as your card details to anyone including your bank officials. Remember, as a rule, no bank will ever ask you to give out confidential information on the phone.

Second, don’t click any suspicious links that you receive on your phone or on your email. On clicking such links, you might be giving access to fraudsters. They could get your personal details.Do not click on links seeking details of your account. Most reputed companies will ask you to visit their website directly and not ask for details on a mail.

The third point is that you should complete all your transactions without closing the window in the middle of the transaction. Whenever you use your debit card or credit card at a shop, you always make sure that the transaction is completed in front of you and that no details are written down by the merchant. 

The fourth and most important point is that you should not provide photocopies of your card to anyone. Why? This is because the Card Verification Value (CVV) which is required for online transactions is printed on the reverse of the card. Anyone could use the card for online purchases if the information is available with them. Also, don’t ever share your CVV number with anyone. 

Also read: Here is how to handle company deposit defaults/frauds

Fifth, you should use only secure and trusted websites. Beware of shady websites that often trick you into sharing your card details. Always check if the website you are using is secure. This can be done by checking whether the site is secured by a reputable net authentication agency like VeriSign.

An important point is that most of us save our card details on different websites. We do this since it seems convenient and we don’t have to punch in our details each time we buy something from a particular merchant site. However,think about what if that website gets hacked? Your card information will then get compromised. So, do not save your card details on any online portals and do not give your card details on unknown or suspicious websites.

The sixth point is that you need to check your statement to see if there have been any unauthorised transactions. 

Apart from taking these precautions, here are a few simple tips to have a secure experience online.

  • Make sure your passwords are strong and complex. You can include alphanumeric characters and unrelated words as passwords.
  • Choose multi-factor authentication for all your online accounts. This will make sure that you get a message on your phone and email when your account is accessed by you or anyone.
  • Network security is very important. Invest in a Virtual Private Network (VPN). You could try and avoid free or public Wi-Fi.
  • Get a anti-virus and anti-malware software for your desktop and laptop.
  • Use a firewall to have a secure connection.
  • Always use sites that have starts with ‘https’ and the padlock icon is visible in the URL field. For instance, the Mymoneysage website is ‘’.
  • Do not save your personal information online, ever.
  • Smartphones are susceptible to a wide range of cyber frauds. A good security software can keep your phone safe and secure.
  • Financial transactions and online shopping must be carried out only on legitimate websites. Ensure that the website’s address starts with ‘https’ and the padlock icon is visible in the URL field.

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As a measure to curb banking frauds, RBI will introduce a new wing to tackle such frauds. It is going to rely on some of its employees to manage the new wing and will also get other financial agencies to help. This should help prevent people from being victims of digital and other bank frauds in the country.

About the author

KishorKumar Balpalli, believes that financial literacy and discipline is the key to one’s financial freedom. KishorKumar is a Certified Financial Planner, Personal Finance Blogger & the Founder of an award-winning Wealth Management platform. myMoneySage simplifies investing for individuals and amplifies business growth for Registered Investment Advisers by leveraging Artificial intelligence and machine learning. The AI of the machine plus the intellect of the human advisor enables comprehensive & client-centric advice at a fraction of the cost of a conventional adviser. is an award winning personal finance platform. It helps you aggregate all your personal finance accounts like FD, Equity, Mutual Funds, PPF EPF, NPS including, Credit Cards & Loans etc. It's one place where you can track, plan and invest seamlessly. empowers you to invest in zero commission direct plans of mutual funds thereby helping you generate higher on investments. The best part is it comes with a lifetime Free plan.

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