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'Faulty authentication processes behind debit card-skimming'

RBI said the issues relating to illegal card transactions took place as authentication steps did not exist in overseas market where these cards were cloned

July 03, 2013 10:23 IST | India Infoline News Service
The Reserve Bank of India said the recent instances of illegal debit card-skimming leading to money theft from other bank accounts is due to the absence of authentication processes in the jurisdiction where the money got withdrawn.

RBI Executive Director G Padmanabhan said that the issues relating to illegal card transactions took place because we are interlinked, and the two-factor authentication and the other security measures did not exist in overseas market where these cards were cloned and used.

Urging Kotak and Western Union to take care of these issues, Padmanabhan said some violations have started happening particularly in the area of money transfer.
Padmanabhan was speaking at an event organised by Western Union Money Transfer and Kotak Mahindra Bank in Mumbai on Tuesday.

‘Card skimming’ is the illegal copying of information from the magnetic strip of a credit or ATM card.

The scammers try to steal your card details so they can access your accounts. Once scammers have skimmed your card, they can create a fake or ‘cloned’ card with your details on it. The scammer is then able to run up charges on your account.

Card skimming is also a way for scammers to steal your identity (your personal details) and use it to commit identity fraud. By stealing your personal details and account numbers the scammer may be able to borrow money or take out loans in your name.

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