JETIR2012332

© 2020 JETIR December 2020, Volume 7, Issue 12 www.jetir.
org (ISSN-2349-5162)
CYBER CRIME: A GROWING THREAT TO

INDIAN E-BANKING SECTOR
Author 1: Mrs. S. KALPANA
Research Scholar, PG & Research Department of Commerce(CA), Hindusthan college of Arts and Science(A),
Coimbatore, Tamilnadu, India.
Author 2: Dr. M.MAHALAKSHMI

Professor, , PG & Research Department of Commerce(CA), Hindusthan college of Arts and Science(A),
Coimbatore, Tamilnadu, India.
ABSTRACT: Information and communication Technology has become an integral part of our day to day
life. With the cheap availability of broadband and smart phones, almost everyone has access to the cyber
space, connecting virtually at millions of online users across the globe. Increasing use of cyber space has
also made us vulnerable to cybercrime threats. A minor laps/ negligence in managing our digital life can
open doors for cybercrimes and hence can lead to financial loss. So, we must be vigilant and careful
while connecting digitally to the outside world whether for financial transactions, social networking,
playing games or searching things on the internet etc. This paper provides an overview of cyber crimes
in E- banking sector and general tips to prevent themselves from becoming a victim of cybercrime.
KEYWORDS: Cybercrime, E- Banking, preventive measures.
I. INTRODUCTION
Banks in India have migrated to core banking platforms and have moved transactions to payment
cards (debit and credit cards) and to electronic channels like ATMs, Internet Banking and Mobile
Banking. The banking industry has enjoyed the ride of emerging technology to undergo significant
changes and has witnessed expansion of its services and strives to provide better customer facility
through technology with the swift expansion of computer and internet technologies, on the other hand,
there have been risks involved in it as well. Technology risks not only have a direct impact on a bank as
operational risks but can also exacerbate other risks like credit risks and market risks. Given the
increasing reliance of customers on electronic delivery channels to conduct transactions, any security
related issues have the potential to undermine public confidence in the use of e-banking channels and
lead to reputation risks to the banks.
Electronic Banking or e-banking refers to a system where banking activities are carried out using
informational and computer technology over human resource. In comparison to traditional banking
services, in e-banking there is no physical interaction between the bank and the customers. E-banking is
JETIR2012332 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 964
© 2020 JETIR December 2020, Volume 7, Issue 12 www.jetir.org (ISSN-2349-5162)
the delivery of bank’s information and services by banks to customers via different delivery platforms
that can be used with different terminal devices such as personal computer and a mobile phone with
browser or desktop software, telephone or digital television.
II. REVIEW OF LITERATURE
RBI, Cybercrime fraud 2019, The total value of bank frauds more than doubled in 2019-20. Total
cases of frauds have increased 159% by value to Rs 1.85 lakh crore, compared to Rs 71,543 crore in
2018-19.Similarly, the frauds increased 28% by volume to 8,707 cases in 2019-20, compared to 6,799
instances in the previous year, as per data released by Reserve Bank of India (RBI) in its annual report.
Balasubramanian et al, (2014) analysed the success of Information System in internet banking
and its security challenges. 52 respondents were surveyed customers have fear that information sent by
them through internet is not protected also have threat of their banks website getting hacked. The
customers also have the fear of the malware attacks. The customers have the doubt about the security
system of being reliable for internet banking services.
III. STATEMENT OF THE PROBLEM
Today, web technology has emerged as an integral and indispensable part of the Indian Banking
sector. The enlargement of non-cash based transactions around the globe has resulted in the steady
development of robust online payment systems.
The last few years have seen a significant increase in cybercrime across all sectors and
geographies. Given the proliferation of this technological crime, organizations face a significant
challenge to be resistant against cyber-attacks. Digital India may have become a soft target for criminals
as country recorded a huge increase of 63.5 percent in cyber-crime cases in the year 2019, showed the
National Crime Record Bureau data. The NCRB's data stated that 44,546 cases of cyber-crimes were
registered in 2019 as compared to 28,248 in 2018.
This research attempts to analyses the concerns of cybercrimes in E-banking sector by highlighting
the various wrongdoings are reported on a regular basis in the Indian Banking Sector. There is a need to
analyses the nature of such crimes so that appropriate preventive measures may be devised.
IV. OBJECTIVES
 To identify the various cyber crimes in E- banking sector in India.
 To provide the preventive measures to control the cyber crimes in India.
V. RESEARCH DESIGN
The focus of the study has been on describing the various cybercrimes and the preventive
measure to overcome these issues. The research design chosen for the study has been descriptive and the
secondary data source has been collected through web-sites, books and journals. The period of the study
was taken till December 2020.
VI. LIMITATIONS OF THE STUDY

This study focuses on the cybercrimes related only to the Indian E- banking sector. It does
not cover the whole financial sector. All aspects area and measures covered are limited to the Mobile and
Internet Banking users.
VII. CYBER CRIME IN E-BANKING SECTOR
In general cybercrime may be defined as “Any unlawful act where computer or communication
device or computer network is used to commit or facilitate the commission of crime”.
Cyber fraud cases in banks have become quite common which cause heavy loss of money to the
customers every year. Cybercrime can be described as any criminal activity done using computers and
the Internet. This includes anything from illegally downloading files to stealing millions of rupees from
online bank accounts. Cybercrime also includes non-monetary offenses, such as creating and distributing
viruses on other computers or posting confidential business information on the Internet. More than half
of the population is connected to web these days and every individual has easy access of internet for their
daily routine purposes like banking, entertainment, education etc. The availability and use of smart
phones have really added weight age to the remarkable growth in the internet. The demand of online
services has made a challenge for providing security to the customers, mainly due to increase in
cybercrimes, which is serious threat to the financial institutions and banks. Cybercrimes can take many
forms like E-laundry, ATM fraud, credit card fraud, etc. There have been significant changes in banking
industry due to emerging technologies and IT revolution.
However, from the aspect of financial cybercrimes committed electronically, the following
categories are predominant:
 Hacking: It is a technique to gain illegal access to a computer or network in order to steal, corrupt, or
illegitimately view data.
Preventive measures:
 Always keep your systems/devices (desktop, laptop, mobile) updated with latest patches and
Protect systems/devices through security software such as anti-virus with the latest version.
 Always download software or applications from known trusted sources only. Never use pirated
software on your systems/devices.
 Ensure all devices/accounts are protected by a strong PIN or pass code. Never share the PIN or
password with anyone.
 Computers/laptops should have a firewall and antivirus installed, enabled and updated with latest
versions.
 Never download or install pirated software, applications etc. on your computer, laptops or hand-
held devices.
 Always scan external devices for viruses, while connecting to the computer.
 Be careful while browsing through a public Wi-Fi and avoid logging in to personal and
professional accounts while using public Wi-Fi systems.
 Phishing: It is a technique to obtain confidential information such as usernames, passwords, and
debit/credit card details, by impersonating as a trustworthy entity in an electronic communication and
replay the same details for malicious reasons.
 Ensure all devices/accounts are protected by a strong PIN or pass code. Never share your PIN or
password with anyone.
 Do not share your net-banking password, One Time Password (OTP), ATM or phone banking
PIN, CVV number etc. with any person even if he/she claims to be an employee or a representative of
the bank and report such instances to your bank.
 Vishing: It is the criminal practice of using social engineering over the telephone system to gain
access to private personal and financial information from the public for the purpose of financial reward.
 Remember bank never asks for card number/CVV number/OTP.
 Never share the ATM card number, CVV, OTP or any other confidential banking credentials with
anyone over a phone call/SMS/WhatsApp.
 Spamming: Unwanted and unsolicited e-mails usually sent in bulk in an attempt to force the
message on people who would not otherwise choose to receive it are referred to as Spam E-mails.
 Never give out or post your email address publicly
 Think before you click and do not reply to spam messages
 Download spam filtering tools and anti-virus software
 Avoid using your personal or business email address
 Denial of Service: This attack is characterized by an explicit attempt by attackers to prevent
legitimate users of a service from using that service by "flooding" a network to disallow legitimate
network traffic, disrupt connections between two machines to prohibit access to a service or prevent a
particular individual from accessing a service.
 Buy more Bandwidth
 Build redundancy into the Infrastructure
 Configure your network hardware against DDos attacks
 ATM Skimming and Point of Sale Crimes: It is a technique of compromising the ATM machine
or POS systems by installing a skimming device atop the machine keypad to appear as a genuine keypad
or a device made to be affixed to the card reader to look like a part of the machine. Additionally,
malware that steals credit card data directly can also be installed on these devices. Successful
implementation of skimmers cause in ATM machine to collect card numbers and personal identification
number (PIN) codes that are later replicated to carry out fraudulent transactions.
 Observe the surroundings for skimmers or people observing the PIN before using an ATM and
Cover the keypad when entering the PIN.
 Check your bank and credit card statements often
 Enter the PIN yourself taking due care to hide the PIN
 Physically check the keypad to ensure it does not have an overlay device.
 Do not allow anyone to stand beside or behind you while carrying out transaction with ATM/Debit
card/Credit card.
 Do not keep a PIN which can be guessed easily. Keep changing the PIN.
 Ensure you get transaction receipt or confirmation through SMS.
 Ensure that any part of the ATM machine is open or loosely attached.
 Virus, worms & Trojans: Computer Virus is a program written to enter to your computer and
damage/alter your files/data and replicate them. Worms is malicious programs that make copies of
themselves again and again on the local drive, network shares, etc.A Trojan horse is not a virus. It is a
destructive program that looks as a genuine application. Unlike viruses, Trojan horses do not replicate
themselves but they can be just as destructive. Trojans open a backdoor entry to your computer which
gives malicious users/programs access to your system, allowing confidential and personal information to
be theft.
 Get a good anti-virus
 Be wary of e-mail attachment
 Avoid the Third Party Downloads
 Have a Hardware-based firewall and deploy DNS
 Impersonation and Identity theft: Impersonation and identity theft is an act of fraudulently or
dishonestly making use of the electronic signature, password or any other unique identification feature of
any other person.
 Never provide details or copy of identity proofs (e.g. PAN Card, Aadhaar Card, Voter Card,
Driving License, Address Proof) to unknown person/organization.
 Be careful while using identity proofs at suspicious places.
 Do not share sensitive personal information (like Date of Birth, Birth Place, Family Details,
Address, Phone Number) on public platforms.
 Always strike out the photo copy of the identity proof; write the purpose of its usage overlapping
the photo copy. This way, it becomes difficult to reuse the photo copy.
 Do not leave your credit, debit or ATM card receipts behind, in places such as a bank/ATM or a
store; never throw them away in public.
 Fraud by request money QR code/link on Google pay/Phonepe/Paytm: Cyber fraudsters send
debit links or QR codes to victims to scan and receive money in their bank accounts through Google
Pay/PhonePe/Paytm. But instead of receiving money, it actually gets debited from the victim’s account
as fraudsters actually send a request money QR code/link.
 Never accept/click on any link or scan any QR code from unverified sources as they may send you
a manipulated one.
 For receiving money, there is no need to enter MPIN or UPI PIN.
VIII. CONCLUSION
In present scenario, Indian banking sector cannot avoid banking activities carried out through
electronic medium but Cyber crime is more serious offence than the real life crimes, in order to
overcome this problem the victims should report these cases to the nearest police station and cyber fraud
council in banks. In order to stop these issues, the legislature should keep a track on the working system
of banks and law implementation should strict to monitor such wrongdoings and moreover banks should
educate the customers regarding the awareness of cyber crimes often.
REFERENCES
1. Mayur Abhyankar, Ketan Patil (2019),”A study of Frauds in Banking Industry”, Indian Journal of
Applied Research, Vol- 9(5).
2. Harshita Singh Rao (2019),” cyber crime in banking sector”, International Journal of Research –
Granthaalayah, Vol- 7(1) PP.148.
3. India Banking Fraud Survey, Edition-II,(April 2015),www.deloitte.com/in
4. http://www.cyberlawsindia.net/
5. https://cybercrime.gov.in/Webform/CrimeCatDes.aspx

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© 2020 JETIR December 2020, Volume 7, Issue 12 www.jetir.

CYBER CRIME: A GROWING THREAT TO

Author 2: Dr. M.MAHALAKSHMI

VI. LIMITATIONS OF THE STUDY

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