Digital Banking fraud has becoming a serious menace these days. RBI warns banks of these frauds. RBI adds to say that the Digital banking fraud can wipe out a customer’s bank balance by committing frauds by using Universal Payments Interface (UPI). How does it operate?
- Fraudsters make the victims download an app called AnyDesk.
- Hackers get remote access to the mobile through nine-digit code generated on the victim’s device.
- Once this code is inserted on his device by the fraudster, he will advise the victim to grant certain permissions which are identical to such actions required in other apps.
- This in turn enables the fraudster to get access to the victim’s device and carry out the fraudulent transactions.
- This action can be carried out through any mobile, banking apps or payment related apps, which includes UPI or Wallets.
Action and follow up
- RBI has sent a note to all banks, that the fraud if carried out, might compromise with crores of Retail customers’ balance.
- Bank officials claim that since they have been warned by RBI, they have already started sending alerts to their customers, on the matter. Also, this would be applicable to customers who are carrying out transactions through an e-commerce platform.
In January this year, transactions related to Government backed UPI rose to 8.47% which is nearly 670 million as against 620.17 million a month before. The transaction value was Rs. 10,900 crores.