Due to the increasing number of fraud cases in India, RBI has laid out new, stricter set of rules to ensure safety from fraudulent acts. Credit and Debit cards, by default, can be now used only for domestic transactions at ATMs and Public Selling Points. Other services need to be opted for.
Crux of the Matter
As per the RBI guidelines for newly issued Credit and Debit cards, online transactions, international transactions, and cardless transactions need to be opted for separately.
There is a provision where one can enable all the above-mentioned services just by mentioning it while applying for a card in their respective banks.
“For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card, not present (domestic and international) transactions, card-present (international) transactions and contactless transaction rights,” as per RBI guidelines.
The above-mentioned services will be automatically disabled in those cards which haven’t been used for a single time to do an International transaction, online and cardless transactions. Owners can resume it by enabling it through respective banks.
RBI has asked banks to provide an option of switching on and off the Card at any time.
Furthermore, banks will provide services to customers with a provision to adjust the overall limit of the sum that can be withdrawn through the card. As per RBI, banks should provide this service 24×7 through mechanisms like mobile application, ATMs, internet banking, at bank branch, and Interactive Voice Response (IVR) System.
Curiopedia
Famous Credit Card Frauds – In July 2013, press reports indicated four Russians and a Ukrainian were indicted in the U.S. state of New Jersey for what was called “the largest hacking and data breach scheme ever prosecuted in the United States.” Albert Gonzalez was cited as a co-conspirator of the attack, which saw at least 160 million credit card losses and excess of $300 million in losses. The attack affected both American and European companies including Citigroup, Nasdaq OMX Group, PNC Financial Services Group, Visa licensee Visa Jordan, Carrefour, J. C. Penny and JetBlue Airways. From 16 July to 30 October 2013, a hacking attack compromised about a million sets of payment card data stored on computers at Neiman-Marcus. A malware system, designed to hook into cash registers and monitor the credit card authorization process (RAM-scraping malware), infiltrated Target’s systems and exposed information from as many as 110 million customers. On 15 May 2016, in a coordinated attack, a group of around 100 individuals used the data of 1600 South African credit cards to steal US$12.7 million from 1400 convenience stores in Tokyo within three hours. More Info
Curated Coverage
Comments