World over online banking frauds account for about 50% of all online crimes. To be sure there is lot of technology enhancements done by the banks to make online banking safe and secure. They range from high end two factor authentication to fraud analytics. But it seems like criminals still rule just by manipulating the human aspects.
Take a look at the story http://indianexpress.com/article/cities/pune/cyber-crime-in-pune-unsecured-digital-india-dangerous/ ? In spite of the details, it is still inadequate reporting as they have only talked about SIM duplication, but most also have the alerts on the emails. Did they hack and divert the emails as well ?
Couple of things are important to note in the story;
- One, there seems to be collusion of insiders, otherwise it would be pretty hard to get a cloned sim and not have any notification on email.
- Second in-spite of the police investigation, they aren’t able to trace the main folks behind heist.
- The IT secretary has the power to award punitive damages.
- Legal system can take long time.
In such cases how does one defend their money barring not going for any online accounts at all. Here are some simple non technology measures.
- Spread the money in multiple accounts.
- Enable all sorts of notifications (mobile, email, slow mail) for transactions.
- Use only dedicated private computers for online banking aspects.
- Educate yourself on phishing and do not type your password in anything other than the website which you typed yourself in the browser.