Lok Sabha Question No. 2274 (UNSTARRED), answered on 2021-03-08
Subject: ATM Frauds
Ministry: FINANCE
Asked by: Rodmal Nagar, Kanakmal Katara

## GOVERNMENT  OF INDIA

## MINISTRY OF'FINANCE

## DEPARTMEN'T OF FINANCIAL  SERVICES

## LOK SABHA UNSTARRED  eUESTION No. 2274

Answered on Monday,  March  8,2021lphalguna  I 7,1942 (Saka)

## ATM Frauds

2274. SHRI RODMAL NAGAR:SHRr KANAKMAL  KA.]-ARA:

## Will the Minister of FINANCE be pleased to srare:

(a) the steps being taken by the Government  to checl< r.rr,rrnber  of such cases  in the country; hacking of ATM card details keeping in view the rising

(c) if so, the details thereof and if not, the reasons  therefor:  and

(b) whether with a view to preventing  ATM relateci  or online fraud, the Government is developing any such technology so as to track cloning of the cards immecliately and also to alert the account holders;

(d) the details of the steps being taken by the covernrnent to check the increasing  number of cases of fraud after getting  oTP and other secret information  on phone in the various cities of the country including  the National Capital  Region?

## Answer

## ]'HE MINISTER  OF STATE IN THE MINISTRY OF FINANCtr (SHRI  ANURAC SINCH THAKUR)

(a) to (d) Reserve Bank of India (RBI) has issued circulars/guidelines  from time to time, for preventing bank frauds  and sr-ritably  protecting  the interest  of the customers  which, inter-alia,  inclurdes:

- i' RBI vide circular  on Cyber Security Frarnework in Banks dated June 2. 2016, advised  banks to, inter alia, implernent  as under :
- o lmprove  and Inaintain  custolner awareness ancl e<jucation with regard to cybersecurity  risks.
- o Educate the customers  on the downside risk of sharing  their login credentials / passwords  etc. to any thirdparty vendor and the conseqLlences  thereof.
- o Encourage customers  to report phishing  mails/ Phishing sites and on such reporting  take effective  remedial action.
- ii. RBI vide circular  on "Control  measures  for ATMs  -  Timeline for compliance" dated June 21,201g,  advised banks and white label ATM operators  to take various  measures to strengthen  security of ATMs. These rneasures.  inter alia include - enabling  BIOS passwords,  disabling USB ports,  disabling auto-run facility, applying the latest patches of operating system  and other softwares,  terminal security  solution, time-based admin access' implementing  anti-skirnming and whitelisting  solution,  upgrading ATMs to supported  versions of operating system, etc.
- iii. RBI vide its circular on 'Enhancing  Security of Card  "lransactions' dated 15.01.2020. has inter-alia issued following  guidelines  to barrks.  card payment  networks and non-bank  ppl issuers:
- o  All the cards (physical/virtual)  at the time of issLre/re-issue  are to be enabled for use only at contact based points of usage within lndia.
- ' Facility to switch on / off and set / rnodify transactiorr  lirrits (rvithin  the overall  card limit, if any, set by the issr"rer) for all types  of transactions  -- clomestic and international.  at PoS / ATMs  / online traniactions / contactless  transactions, etc. on 24x7 basis to be provided.
- o Alerts  / information  / status. etc., through  SMS / e-rnail, as and when there  is any change in status  of the card to be provided.
- iv. RBI vide Master  Direction  on Digital Payment Security  Controls  dated February 18, 2021, advised  banks to, inter  alia, implernent  the following customer protection  controls for their digital  payment  applications:
- lncorporate  sectlre. strf'e and responsible  usagc gLriclelines  and training  rnaterials  for end users within  the digital pa) nrcnr applicarions.
- Mention/ lncorporate  a section on the digital payment application  clearly  specifying  the process and procedure  (rvith fbrrns/ contact infornration,  etc.) to lodge consurner  grievances '
- continuously  create  public awareness on the types of threats  and attacks  used against  the consurners  while irsing digital  payntent  products  and precautionari,  ltleasures  to safegLrard  againsithe  sarne,  and caution  the cLlstomers  against  commonly known threats in recent tirres like phiihing, iirhing,  reverse-phishing, remote access of mobile  devices and educatecl  to secure ancl safeguard  iheir acJount a"iaitr,  credentials,  plN, card details,  devices.  etc.
- v' Banks  to provide  customers  with 24x7 access  through multiple  channels  (at a minimum  via website, phone banking, SMS, e-mail,  IVR, a dedicateil toll-fiee helpline,  reporting  to home branch, etc.) fbr reporring unauthorized  transactions that have taken place and/ or loss or theft  of payment instrurnent,  such as, card. etc.
- vi' Banl<s have been directed  to exantine the fiaucl cases and report them to law enfbrcement  agencies,  examine statT accountability,  cotnplete proceedings  against the erring staff expeditiously,  take steps  to recover  the arrount involved in the tiaud.  clairn insurance  wlrerever  applicable and streamline the system as also the procedures  so that frauds do not recur.
- vii"rhe customers  will have zero liability  in case olunauthorised transactions  occurring  due to co,tributory,fiaud / negligence  / deficiency on the part of the bank and dLre to third party  breach.  provided,  they notify the bank regardirrg  the unauthorised  transactions  within three working days of receiving the communication  from the banl< regarding  this transaction.
- viii. RBI is running the awareness  carnpaigrr  under the ba,ner of  ,RBI inter-alia  irrclude: Kehta  Hai' on safe digital banking which
- > Not to share  password  /pin/OTp  received  thror\_rgh SMS.
- > Practicing  safe mobile barrking. such as awareness on benefits of registering  r-nobile number with bank for instant  alerts.
- / Use only verified, secure and trusted rvebsite.
- '/ Not storing  irnportant  banking data in rrobile.
- ', Avoid banking transactions on fiee networks.
- ) Blocking ATM card, Credit Card and prepaid  card imrnediately  if it is lost or stolen.

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