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How Frauds Occurs

Mobile banking has been at the threshold of a revolution for some time. While many operators as well as banks, have introduced mobile banking applications, it never became popular due to
security concerns. If we think that mobile banking solutions are all about cutting down the number of visits to the bank, think again. Mobile banking frauds have become very common these days and can happen in a variety of ways. If you have stored your m-pin on sent messages or on the phone and the phone is lost, then your account can be easily misused. Anyone can easily read your messages as they are sent in clear text. Other than that, if there is virus in your phone and the same has the capability to access your m-pin details, then also you can be a victim of fraud.

Frauds can happen by way of cloning of websites. Although most banks have encrypted websites, but if they are not encrypted, then account users can be fooled by fake websites. One of the possible ways of identifying the cloned website is the http address at the top. The fake website can never have the same uniform source locator (URL), and therefore, one must always check the address bar properly at the top.

The use of mobile for financial and non-financial transactions has had a chequered history. Several initiatives during the last decade (overseas) have come and gone, and several more initiatives into the future are emerging. The difference between now and then is: Mobiles have come a along way. They find themselves in the hands of a third of humanity, and have pipped the internet in penetration! Mobile banking as a service is still to catch up in large parts of the world. Even the developed countries, where mobile banking has gained momentum, are still exploring opportunities to exploit this space and develop new ways of usage. India is no different. It is among the fastest growing markets in the world. Though, basic services like bill payments, recharges, and money transfers have picked up in some markets. In developed countries, m-commerce has started gaining popularity due to higher level of comfort with emerging technologies. Also, increasing penetration of mobile phones in countries across the world has fuelled expectations. Thus, mobile banking is the service of the future and m-commerce is inevitable. Mobile banking is expected to become common and popular the world over and replace traditional banking activities and facilities. In fact, people have begun to prefer mobile banking to debit/credit cards, also because the numbers of cell phone users are more than debit/credit card holders.

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Dr. Gursharan Singh Kainth started his career as Lecturer at Post Graduate Dept. of Economics, Government College, Gurdaspur, and later at Khalsa College; Amritsar, specializes in Quantitative & Development Economics. Has the distinction of serving Punjab Agricultural Univ, Ludhiana, for more than 2 decades and remained Director-Principal of Saint Soldier Management & Technical Institute, Jalandhar. Currently, heading GAD Institute of Development Studies, Amritsar, a self-financed research institute. Has been honoured with various awards, including Guru Draunacharya Samman, Vijay Rattan Award, etc.
Article posted on December 1, 2008.