ATM FRAUDS IN INDIA WITH A SPECIAL FOCUS TO ATM CARD CLONING

ATM FRAUDS IN INDIA

WHAT IS ATM FRAUD?
WHEN DOES ATM FRAUS OCCUR?
LEGISLATIONS IN INDIA
CASES OF ATM FRAUDS IN INDIA
LEGISLATIONS DIFFERENT COUNTRIES
CONCLUDING REMARKS AND SUGGESTIONS
http://www.tribuneindia.com/2013/20130628/cth1.htm
http://www.indiaforensic.com/atmfraud.htm
http://www.atmsecurity.com/index.php?
searchword=card+cloning&ordering=newest&searchphrase=exact&limit=0&option
=com_search

ATM Frauds Prevention In India: Legal And

Technical Methods
http://www.electroniccourts.in/blog/?p=291
E-Courts In India And E-Judiciary In India

Electronic Delivery Of Justice In India And Legal Enablement Of

ICT Systems In India
ATM Frauds in India are increasing at an alarming rate. If we add to it the

cases of Credit Card Frauds, Internet Banking Frauds and frauds committed using Phishing
techniques, the numbers are really shocking.
It is not the case that Reserve Bank of India (RBI) is not aware of these cases nor is it the case
that RBI is not doing anything in this regard. In fact, RBI has recently released the Report of its
Working Group on Securing Card Present Transaction that covers ATM Security and Credit Card
Security issues as well.
RBI has also recommended Cyber Security Due Diligence for Banks of India. However, despites
these pro active steps, ATM Frauds are increasing in India. One chief reason for this growth is
that Banks in India are not serious about Cyber Security and they are not following the
Recommendations of RBI.
ATM Frauds happen when someone leaves his/her credit card unattended in a vehicle or
changing room or allows anyone else to use the card or looses the card that is misused by others
or discloses the Personal Identification Number (PIN) to others, etc. These mistakes allow the
offender to withdraw money by using the stolen information. Fraudsters are using special
devices, skimmers, duplicate ATMs, etc to withdraw money from ATMs. Sometimes such frauds
are an insider job with the collusion of the employees of the company issuing those cards.
However, misuse of the disclosed PIN for withdrawing money is the most common techniques
used for committing ATM Frauds.
ATM Frauds can be prevented if we take some basic level precautions. For instance, never leave
your credit card unattended in a vehicle or changing room, never allow anyone else to use your
card, always retain sales/charge slips to compare with the amount specified on the billing
statement, do not disclose your PIN to anyone, etc.
The Technology can also be used to minimise cases of ATM Frauds in India. The technological
mechanisms like Designated time, Microchip technology, Biometric tokens, Enhanced security,
ATM Monitoring, Customised softwares, Customer motivation, Alerts, etc can be used to
minimise and prevent ATM frauds in India.
Another reason for growth of technology related crimes and ATM Frauds in India is absence of
Deterrent Law in this regard. The Information Technology Act, 2000 (IT Act 2000) is the sole

Cyber Law of India. After the Information Technology Amendment Act, 2008 (IT Act 2008)
almost all the Cyber Crimes in India have been made Bailable Now Cyber Criminals can
commit almost all Cyber Crimes, ATM Frauds, Credit Card Frauds, Internet Banking Frauds in
India without any fear. It is high time to repeal the Cyber Law of India as soon as possible and
enact Strong and Effective Laws in this regard.
The IT Act, 2000 does not contain any specific provisions regarding ATM Frauds and Credit
Card Frauds and the traditional law of IPC, 1860 also cannot be relied solely and independently
to tackle this problem. We need a better law for this purpose and Perry4Law and Perry4Laws
Techno Legal Base (PTLB) have already provided their Suggestions and Recommendations in
this regard and other ICT related matters to the Government of India, Department of Information
Technology, Department of Science and Technology, Prime Ministers Office, etc from time to
time.
Till we have suitable and apt laws, we must apply existing laws in a purposive and updating
manner. However, ATM frauds can be tackled by using Techno Legal Methods alone and neither
Legal nor Technical Measures is sufficient in itself.

ATM Frauds Prevention In India

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Article Views3460
GroundReport | Author: Ram Kaushik
Filed Under: Business, Technology | Posted: 07/23/2013 at 4:47PM
Comments | Region: India

PRAVEEN-DALAL-MANAGING-PARTNER-OF-PERRY4LAW-CEO-PTLB
ATM Frauds in India are increasing at an alarming rate. If we add to it the cases of
Credit Card Frauds, Internet Banking Frauds and frauds committed using Phishing
techniques, the numbers are really shocking.

It is not the case that Reserve Bank of India (RBI) is not aware of these cases nor is
it the case that RBI is not doing anything in this regard. In fact, RBI has recently

released the Report of its Working Group on Securing Card Present Transaction that
covers ATM Security and Credit Card Security issues as well.

RBI has also recommended Cyber Security Due Diligence for Banks of India.
However, despites these pro active steps, ATM Frauds are increasing in India. One
chief reason for this growth is that Banks in India are not serious about Cyber
Security and they are not following the Recommendations of RBI.

ATM Frauds happen when someone leaves his/her credit card unattended in a
vehicle or changing room or allows anyone else to use the card or looses the card
that is misused by others or discloses the Personal Identification Number (PIN) to
others, etc. These mistakes allow the offender to withdraw money by using the
stolen information. Fraudsters are using special devices, skimmers, duplicate ATMs,
etc to withdraw money from ATMs. Sometimes such frauds are an insider job with
the collusion of the employees of the company issuing those cards. However,
misuse of the disclosed PIN for withdrawing money is the most common techniques
used for committing ATM Frauds.

ATM Frauds can be prevented if we take some basic level precautions. For instance,
never leave your credit card unattended in a vehicle or changing room, never allow
anyone else to use your card, always retain sales/charge slips to compare with the
amount specified on the billing statement, do not disclose your PIN to anyone, etc.

The Technology can also be used to minimise cases of ATM Frauds in India. The
technological mechanisms like Designated time, Microchip technology, Biometric
tokens, Enhanced security, ATM Monitoring, Customised softwares, Customer
motivation, Alerts, etc can be used to minimise and prevent ATM frauds in India.

Another reason for growth of technology related crimes and ATM Frauds in India is
absence of Deterrent Law in this regard. The Information Technology Act, 2000 (IT
Act 2000) is the sole Cyber Law of India. After the Information Technology
Amendment Act, 2008 (IT Act 2008) almost all the Cyber Crimes in India have been
made Bailable Now Cyber Criminals can commit almost all Cyber Crimes, ATM
Frauds, Credit Card Frauds, Internet Banking Frauds in India without any fear. It is
high time to repeal the Cyber Law of India as soon as possible and enact Strong and
Effective Laws in this regard.

The IT Act, 2000 does not contain any specific provisions regarding ATM Frauds and
Credit Card Frauds and the traditional law of IPC, 1860 also cannot be relied solely
and independently to tackle this problem. We need a better law for this purpose and
Perry4Law and Perry4Laws Techno Legal Base (PTLB) have already provided their
Suggestions and Recommendations in this regard and other ICT related matters to
the Government of India, Department of Information Technology, Department of
Science and Technology, Prime Ministers Office, etc from time to time.

Till we have suitable and apt laws, we must apply existing laws in a purposive and
updating manner. However, ATM frauds can be tackled by using Techno Legal
Methods alone and neither Legal nor Technical Measures is sufficient in itself.

Source: PTLB Blog.

http://timesofindia.indiatimes.com/topic/ATM-fraud-case
http://www.tribuneindia.com/2013/20130628/cth1.htm