the Government of India to turn the country into a more digitally synchronised society .
With greater thrust on financial inclusion , there has also been a surge in cases of fraudulent transactions . Hence , customer protection to mitigate risks has taken front seat for banking institutions .
In order to analyse customer behaviour and patterns , banks use big data . It enables banks to track factors like how often a user typically accesses an account and the geographic location from which the user most often accesses an account . This helps them spot frauds .
Banks are increasingly relying on big data to predict attacks , based on trends that are specifically targeting the industry . Puneet Kapoor , senior executive vice president , Kotak Mahindra Bank stated : “ We do two types of analysis . One is from a risk perspective . We have certain volume-velocity linked algorithms , which generate alerts if there is any unusual activity on a card . The second is from a customer engagement perspective .”
Whenever a customer initiates transactions at the Point-of-Sales terminal ( POS ), location of the invoice is automatically detected . Parag Rao , country head-cards and merchant acquiring business , HDFC Bank says : “ For all payment transactions initiated at POS , the card will prompt for PIN for authenticating the genuineness of the transaction . The cardholder ’ s data is secured and protected against any misuse / cloning since the data is stored in encrypted format on the embedded chip .”
Further , the Reserve Bank of India ( RBI ) in July 2017 came out with revised guidelines limiting customer liability and pushing onus on to banks in case of frauds . The regulator has made it mandatory for banks to register all customers for text message alerts and permit reporting of unauthorised transactions through a reply to the alert message and other channels , including phone banking , SMS , email , website , call centre and interactive voice response .
“ The customers must be advised to notify their bank of any unauthorised electronic banking transaction at the earliest after the occurrence of such transaction , and informed that the longer the time taken to notify the bank , the higher will be the risk of loss to the bank / customer ,” says RBI ’ s circular .
Safeguard your travel One cardinal rule to observe before any travel plan would be to inform the banks about an impending travel . This allows banks to whitelist a card throughout the duration of travel . It is equally important to not switch off a phone number that has
On the road
Inform the card issuer of your travel plans , so that they can track card use
Activate SMS / email alerts on your phone for card-related activities
To receive timely alerts , avoid switching off phone that has been mapped to your debit / credit cards
A customer can deactivate his or her debit card through the mobile banking app
With round the clock NetBanking and PhoneBanking facilities , cards can be blocked instantly in case of an unauthorised transaction
Enable online accounts . This will help you to monitor your expenses , as well as , keep an eye on fraudulent charges
Update card issuer ’ s customer service and hotline numbers in your contact list
Use pre-paid Forex card as an alternative for shopping been mapped to the bank account , so as to receive timely alerts about any transactions that take place . Keeping the card issuer ’ s customer service / hotline number updated in the phone contact list would also go a long way . “ Log on to your online accounts , as it will help you verify your activities . If you do get flagged , monitor your expenses , it will help in keeping an eye out for fraudulent charges ,” explains Puneet Sahni , head of product development , SBI General Insurance .
Insuring your travel is another great way to deal with an untoward situation when you are travelling overseas . Insurance providers have emergency services for customers , in case there has been a theft and you are stranded with no money . For travellers facing such a situation , insurance providers allow cash assistance up to the limit stated in the travel policy . Anurag Rastogi , member of executive management , HDFC ERGO General Insurance points out : “ Financial Emergency Assistance ’ is a service provided by insurers to travellers in case they face a situation where the wallet or credit / debit cards are stolen .”
Insurance will come in handy in times of dire need , as most travel insurance service providers provide assistance by arranging for cash deliveries once they obtain payment security from the customer or his / her relatives . Insurers also reimburse replacement costs for the lost or stolen wallet , which includes costs for any personal records and debit / credit cards . Application fees for applying for replacement or certified copies of the personal records and / or payment cards could also be covered , added Sahni .
There are small ways in which consumers can protect their plastic money . If these principles are followed , the chance of a fraudulent transaction happening on such cards is relatively lower . rimme @ outlookindia . com
www . outlookmoney . com February 2018 Outlook Money 23