The central government has taken action by suspending 70 lakh mobile phones associated with suspicious transactions to curb the escalating digital fraud incidents in the country, as reported by Financial Services Secretary Vivek Joshi through PTI. Following discussions on financial cyber security and the surge in digital payment frauds, Joshi emphasized that banks are urged to enhance their processes to prevent financial fraud. Addressing Aadhaar Enabled Payment System (AEPS) fraud, he mentioned that state governments are instructed to investigate and ensure data protection.
Combatting Cyber Fraud: Standardizing KYC Procedures and Enhancing Awareness
Discussions also centered on standardizing Know Your Customer (KYC) procedures for merchants, emphasizing coordination among various government agencies to minimize cyber fraud cases. Joshi underscored the importance of creating awareness in society about cyber fraud to protect unsuspecting customers from deception.
The UCO Bank and Bank of Baroda digital fraud incidents were notably highlighted during the discussions. Last month, the RBI directed Bank of Baroda to halt customer onboarding on its ‘bob World’ mobile app after reports of fraud surfaced. Accounts of several customers were reportedly linked to strangers’ mobile numbers, and in some cases, these strangers collaborated with bank employees to withdraw money from these accounts.
UCO Bank’s ₹820 Crore Credit Error: IMPS Technical Glitch and Account Holder Implications
Similarly, UCO Bank disclosed a ₹820 crore erroneous credit to certain account holders via Immediate Payment Service (IMPS). The bank attributed the issue to a technical glitch in IMPS during a specific period, leading to transactions initiated by holders of other banks resulting in credits to the bank’s account holders without actual money receipt from these banks.
