The banking regulator RBI expects reasonable compliance for cyber security. RBI will take a serious action against banks that do not implement the recommendations of the committee. By October 2012, banks will have to implement the recommendations,” Gopalakrishna said here. Banks with a high technology penetration will have to implement all the guidelines and those not having any major online transactions have to implement only some of its recommendations. Banks apart from losing their money by compensating the customers for their loss owing to inadequate security measures would also face much bigger risk– the risk of losing their reputation.
Your Bank account can be hacked using TROJAN
Unauthorised transaction can also be done using a Trojan or a virus installed in a computer. Called ‘coat tailing’, Trojans follow the users log into their account. “With access to the online account, the Trojan furtively transmits its transactions along with transactions of the account holder,” Mr. Vijayshankar says.
The technology aspect of an e-banking fraud is, perhaps, the easier part of it. This is because to complete the transaction into the cyber criminal’s account, a fake account needs to be set up.
More often than not, the account is set up within the same bank, albeit in another branch, which makes transactions simpler (read, lesser security layers to go through). Otherwise, says Mr. Vijayshankar, a ‘mule’ can also be employed. A ‘mule’ is a people tricked into setting up a bank account by an ‘agent’ who will have complete access to it. When the fraud is detected, the trail of money can be traced to the ‘mule’, he says.
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