RBI Warns 74% Of ATM Fraud Risks
New Delhi- Automated Teller Machines (ATM) outdated software is operating in public sector banks. This can lead to people becoming cheating easily. This information has been released in response to a question asked in parliament last week.
Currently there are more than 2 million ATMs in India, of which around 70% are operating on Windows XP software. It is worth mentioning that the Microsoft company has stopped supporting such software since 2014.
It is worth mentioning that in June last year, the Reserve Bank of India had advised all banks to upgrade all their ATMs by June-2015. If this is not done then action will be taken against them.
Banks were told by the Reserve Bank that they would gradually upgrade the operating system version by June-2015 and complete all other safeguarding measures by August of this year. The Reserve Bank further said that this kind of negligence damages consumer interests.
Banks were told by the Reserve Bank that they would gradually upgrade the operating system version by June-2015 and complete all other safeguarding measures by August of this year. The Reserve Bank further said that this kind of negligence damages consumer interests.
Despite repeated warnings by RBI, banks have not even made their ATMs full safe and skimming-proof. So here's what you can do if your card gets skimmed and you lose money In a circular issued yesterday, the central bank has pointed out that banks have not taken steps to secure ATMs running on old software despite being warned about these in April, 2017.
RBI has confidentially asked banks to upgrade to ATM software to ensure security but due to the bank's slow progress on this, the central bank issued another warning yesterday. In its latest letter, it has asked banks to install anti-skimming devices and 'white-listing' solution in cash machines by March 2019 Click here to read
In fact, fraudsters with cloned debit cards are conducting their transactions overseas to avoid detection. Click here to read the full story
As more and more such instances come in light, it goes to show that we have to be vigilant with our money and how we transact digitally. In July last year, RBI has come out with guidelines regarding customer liability in the event of unauthorized e-banking transactions.
Here is a look at what you should do in case of any unauthorized activity in your account. However, before we get to that, here is what RBI has asked banks to do prevent fraud.
What are ATM skimmers?
ATM skimmers are add-on devices that fraudsters attach on top of the cash machine's card slot. These devices have the capability of 'reading' information from the card's magnetic stripe and then store or transmit the information to the fraudster, who then clones the card using the information.
What are you doing?
Banks have installed anti-skimming devices These devices send out signals that prevent the skimmer from functioning. Similarly, white-listing solutions only trusted applications on the ATM and block any other application.
The RBI has also red-flagged the slow progress of banks in upgrading machines from the unsupported Windows XP operating system. "The slow progress on the part of banks in addressing these issues has been viewed seriously by the RBI," a central bank circular said.
Now, until the banks get their act together Here is what you can do
Despite repeated warnings by RBI, banks have not even made their ATMs full safe and skimming-proof. So here's what you can do if your card gets skimmed and you lose money In a circular issued yesterday, the central bank has pointed out that banks have not taken steps to secure ATMs running on old software despite being warned about these in April, 2017.
RBI has confidentially asked banks to upgrade to ATM software to ensure security but due to the bank's slow progress on this, the central bank issued another warning yesterday. In its latest letter, it has asked banks to install anti-skimming devices and 'white-listing' solution in cash machines by March 2019 Click here to read
In fact, fraudsters with cloned debit cards are conducting their transactions overseas to avoid detection. Click here to read the full story
As more and more such instances come in light, it goes to show that we have to be vigilant with our money and how we transact digitally. In July last year, RBI has come out with guidelines regarding customer liability in the event of unauthorized e-banking transactions.
Here is a look at what you should do in case of any unauthorized activity in your account. However, before we get to that, here is what RBI has asked banks to do prevent fraud.
What are ATM skimmers?
ATM skimmers are add-on devices that fraudsters attach on top of the cash machine's card slot. These devices have the capability of 'reading' information from the card's magnetic stripe and then store or transmit the information to the fraudster, who then clones the card using the information.
What are you doing?
Banks have installed anti-skimming devices These devices send out signals that prevent the skimmer from functioning. Similarly, white-listing solutions only trusted applications on the ATM and block any other application.
The RBI has also red-flagged the slow progress of banks in upgrading machines from the unsupported Windows XP operating system. "The slow progress on the part of banks in addressing these issues has been viewed seriously by the RBI," a central bank circular said.
Now, until the banks get their act together Here is what you can do
