Fraud Registry by RBI

Updated on Dec. 10, 2022, 12:37 p.m.

Bank Fraud is considered as an illegal activity of a person playing a lead role in getting money from any banks or financial institutions. This is considered as the greatest criminal act of forcibly obtaining the financial assets and information from the bank by giving out the details of a person to the bank and gathering all the details about the person and impersonating him or her in a logical fashion.

Banking in India has seen awesome progress in the recent past. Gone are the days when one used to take leave from work and other day to day activities, go to bank wait in queue for addressing the simplest to the complex concerns. The Digital Wave has changed our approach and we are using the digital resources to do simplest and the complex banking transactions.

You can compare it to using a small fish as bait in the river or lake to catch the big fish. These fraudulent acts can be done by individual or financial establishments.

Types of Frauds:

In the present scenario after the Covid 19 and the Ukraine Russia War the fraudulent transaction has gone by my miles and you can read in newspapers and online websites that lot of money has been siphoned off from many persons or financial establishments.

We must analyse various kinds of fraudulent activities taking place in the banks in India and around the world and they can be classified as given below as follows:

Identity Frauds: This is the most common fraudulent activities taking place in the banking segment in India and across the globe, where in the critical details like Name, Age, Aadhar Number, Pan Card Number, SSN, Email address, Residential address are taken from the individual to get various details of the bank.
Credit Card Fraud: The use of plastic money or the Credit Card as it is called at present has reduced the pressure on the people, as they will not have money to pay immediately and can make payment after some days or months. However due to this one can experience situation where in the fraudsters or scammers will get access to the personal information of the customer and use that information to do various transactions in your name. The scammers get access to the user’s credit card details by copying information available in the magnetic stripes and this takes place in a card having contactless feature. There have been interesting cases, where in the Merchants has used the customers credit card information and made purchases on behalf of the customers.
Online Fraud: To be honest, this topic does not need any mention, as one can see the online fraud taking place on a regular basis. Furthermore, there are lot of fake websites and links doing the rounds fooling the people with mouth watery offers. For example, A link 2 months ago stated that if you give your account details, we will credit 25 Lakhs into your account. We must be very careful and avoid clicking on those links in our mobile and our emails. We must not click on those links available on WhatsApp and Face book as they are very dangerous. This tactic is very complex, as they get into the users Facebook or WhatsApp account and gather the contact details and use to fish out the information. We must immediately report such incidents and bring it to the notice to the concerned authorities. We must always oblige the messages given by the bank stating the bank does not ask for any personal details over the phone and please do not share the Login Id and Passwords, or any unique reference or transaction numbers to the caller.
Cheque Fraud: There is an increase in the cheque’s fraud in various bank of India. The cheque fraud can take place in various modes and they are given below as follows:
- Cheque Forgery as you can copy the signature of another person, forge the signature and deposit the cash in to your account.
- Giving the blank cheques to the customer to take the amount.
- Bouncing of the cheques is another area of concern, as there are no sufficient funds to make the payments.
- Writing the cheques from closed account and giving it to the customer and this can lead to another set of issues.

Fraud Registry – An Initiative of RBI

This is one of the major initiatives undertaken by the apex banking body in India to go ahead and create the Fraud Registry. This register will be designed in order to prevent fraudulent transactions and also to blacklist those phone numbers, websites and links that are regularly used by the fraudsters and fraud agencies.

As per the statement given by Mr. Anil Kumar Sharma, the Executive Director of the Reserve Bank of India, these databases will play a major role in preventing fraudsters from doing frauds as the alerts will get activated and the RBI will be able to reach them immediately in any corner of the globe.

The scheme is being discussed with various officials of the RBI, Other banks in India, Finance Ministry, Economists, Financial Experts, Chartered Accountants and others. There is no definite time line, however the project will be in running in the next 2 years.

The use of Fraud Registry will enhance the chances of real time fraud monitoring (RTFM) and you can also get the details about the new threats as well. The best part of the Fraud Registry Service is the fraudulent data and activities will be made public using Newspapers, Websites, Posters, Pamphlets, social media and the Radio.

This scheme of creating the Fraud Registry is established under the resourcefulness of Modi government known as “One Nation One Ombudsman” scheme.

The directive is aimed at averting frauds and the bank officials has also asked the customers of various banks in India to do certain activities from their end like:

Shred old cheques and passbooks.
Do not leave blank space on the Cheques.
Go to the official website of the respective banks.
Not to install Apps in your mobile phones and tablets that are not genuine.
Never share any confidential details like OTP, CVV, Start Date and Expiry Date, Aadhar, Account Number, Transaction Number, Customer Id, Pan Number, Login Id over the phone.
Keep your net banking password very strong, so that no one notices and tries to use it.
Do not click on the links available in your messages in your mobiles and tabs and spam folders of the inbox.
Block the confusing or unique mobile number starting like 13, 14 and others.

Fraud Registry by RBI

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