corona epidemic After this, cases of banking fraud have increased rapidly. People of small villages are also becoming its victims. In view of this increasing threat, the Finance Ministry has given strict instructions to the banks. The Finance Ministry has directed banks and financial institutions to work towards enhancing ‘Know Your Customer’ (KYC) processes and due diligence to curb the BOB World app scam and other similar financial fraud cases.
Sources said that banks and financial institutions should thoroughly scrutinize the shopkeepers (merchants) and banking correspondents providing banking services in rural and remote areas before adding them. Sources said such a step would not only curb frauds but also strengthen the financial ecosystem.
Need to strengthen data security
Sources said that there is a need to strengthen the security of data at the level of shopkeepers and banking representatives, because there is a greater possibility of data breach at their level. In such a situation, sources say that the Reserve Bank of India (RBI) should thoroughly investigate banks and financial institutions before adding banking representatives to the ‘hotspots’ of cyber fraud. Apart from this, micro ATMs used in fraud should also be blocked.
Inter-ministerial meeting held
Sources said an inter-ministerial meeting was held recently to enhance cyber security and prevent financial fraud. This suggestion was given in this meeting. According to National Crime Records Bureau (NCRB) data, 11,28,265 cases of financial cyber fraud were reported during 2023. A total fraud of Rs 7,488.63 crore was committed in these cases.
Consideration of setting up Digita
To strengthen the mechanism to deal with cyber crime in a comprehensive and coordinated manner, the Central Government, through the Ministry of Home Affairs, has established the ‘Indian Cyber Crime Coordination Centre’ in the country. As part of its efforts to curb rising cyber frauds, the Reserve Bank is considering setting up a Digital India Trust Agency (Digita) to curb the growing number of illegal lending apps. Sources said the proposed agency will help in verification of digital lending apps and create a public register of verified apps.
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