Frauds in banking sector see an uptick
December 30, 2016  13:40
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The Financial Stability Report has raised concerns over the increase in frauds due to technological innovations.


"In the recent past, frauds in the technology environment have accentuated through malware attacks and skimming frauds in ATMs, misuse of SWIFT messages by employees and attacks on the SWIFT messaging system of a bank," the report said.


The Reserve Bank of India said with the increase in ATM penetration, it was important that transactions at ATMs were carried out in a more secure manner.


Another area of concern for the central bank has been instances of large-scale forex remittances in the guise of import advances/payments.


While banks may not have any credit exposures to such parties remitting forex, misuse of banking channels for such remittances is a serious concern, and, therefore, banks need to enhance rigour in their data analytics and reporting structures to aid board level governance, the report said.


Nupur Anand/Business Standard

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