The cloning of debit cards is another popular method used by hackers who do it with the help of card reader-writers. A magnetic card can be copied onto a dummy card and when the debit card is swiped on the card reader writer, all the data can be collected. If the data is transferred to the blank card moving on to Internal frauds are also another which are done by the employees who fail to achieve the targets set by the private banks.
Recently, an employee used unused credit cards to withdraw nearly Rs 30 crores. Since most banks have an incentive-based salary for employees, the culprits happen to be those who underperform. "Yes, there have been stray incidents before but the National Payments Corporation of India has come up with a lot to initiatives to counter fraud," said S. Mathew, Manger of Federal Bank. Most of the managers of private banks however refused to comment saying that the branch office has no say in this and it is for the corporate office to reveal any case of fraud. A check on non-performance employees could help to prevent this.
A personal account as registered by Mr. Rakesh Ravi, an employee with Microsoft, Hyderabad was shocked to find that Rs 2,00,000 was siphoned off his savings account. "I was in Hyderabad when I received the text message that 2 lakhs was withdrawn from my account from a person in Nigeria. I had raised a dispute for Rs 1,84,250 for transactions on my debit card without my consent. I had submitted all the required documents through the bank. In fact they only did the scanning of all documents and the ICICI Microsoft branch in Gachibowli, Hyderabad. I also attached my boarding passes too from Lagos to Dubai and Dubai to Hyderabad to prove that the fraud transactions had all happened just after I boarded the air plane", he added. Rakesh was later refunded the amount in a month's time as he had proof of being in a different country during the time when the transaction took place.
Due to such incidents, problems like this have now been rectified by banks. For instance, if your card has been used in Chennai, you can't use the card in Hyderabad within 40 minutes. "As soon as you receive a message in your mobile of any unauthorised withdrawals, rush to your nearby ATM and take a statement. This will act as proof that you were far away from the place where the fraudsters hacked your account," said Padmaja S, an officer at the Cyber Crime Cell. But despite all security measures, ATM frauds are still on the rise. "The reason for this is many ATM's are at secluded places which have no security guards," added Padmaja.