India is a big nation moving towards a cashless economy, cashless economy need awareness among people to prevent themselves from money fraudsters. Number of money fraud are reported in last few years through cards and internet baking. Till now the cashless transaction was done at very low rate before demonetization announced by PM of India on 8th of November 2016.  Afterwards the cashless transaction increased dramatically in the country. Government of India is also promoting the plastic money (Debit/Credit Cards)  and online transaction. Providing various discounts to promote cashless transaction through credit – debit cards, internet banking, e-wallet etc.


Information Technology changed our life up to a great extend. Digital banking made us to transact online, whether its  eCommerce transaction or commercial bank transaction. With increasing online transaction  online money frauds are increasing dramatically.


Money Fraud Methods

ATM Fraud (Debit-Credit Card Fraud)

Most of the money frauds happen due to ignorance of users while using their cards at ATM or on online payment gateway. Most of the time the ATM frauds in India happens due to negligence of Personal Identification Number (PIN) rather than any other sophisticated methods for stealing your money from bank account. Banks are also not doing well to aware their customers to avoid such frauds while using their cards.  It’s important to educated the customer for using ATM cards for transactions.  ATM transaction are huge in the country so there are more chances of fraud while using ATM Cards.

Below are some techniques used by fraudsters to steal your money.

Keypad Jamming of ATM Machine.

This fraud is commonly reported at various place in country. ATM machines have ENTER and CANCEL  Buttons in key Pad. fraudsters jams the ENTER and CANCEL  button on the ATM keypad with glue or buy fixing pin or blade at the edge of button. After inserting the card, one should have to punch the ENTER button for withdrawal. Enter button won’t work and the customer thinks machine is not working, afterwards he tries to cancel the transaction by hitting Cancel button but that too did not work and the customer leave the ATM in search of another working machine. As soon as the victim leave the ATM the theft enter the ATM and proceed that incomplete transaction and victim get a message of withdrawal done by theft. In this Case there is a limit for transaction amount and chance. Once a transaction done one should need the card and PIN again to transact.   

Never ask for a strange help while transaction. If someone offer a help to do so, cancel the transaction and leave the place.
Leave the ATM machine only after being sure your transaction is canceled and welcome screen appeared on the screen.
Use the ATM having a security guard always, avoid using ATM at late night.
Register your mobile number with your bank account so that you get notification of every transaction done with your bank account.

Card Swapping

Another type of ATM fraud noticed is Card Swapping. At Restaurant, Fuel Pump, Retail Shops and other places you offer your card to the attendant for POS machines. Sometimes the attendant notes down the ATM PIN while the you are entering it. Later the attendant swap the original card with a dummy card which appears identically same as your original card. Customer remain unaware of this swapping.  Now the attendant got both the Card and the PIN to do the job. Thus later withdraws the money unless the card is not blocked by the customer. Fraudsters keeps several dummy cards of various banks and pull out the one similar to yours. Most customers don’t check the cards returned to them whether its their original or dummy card. In this way they are cheated. Sometimes the card holder also tell their PIN to the attendants for punching.

Ensure the card returned is your original Card.
Keep a eyesight on the card after handling it to attendant for POS transaction.
Never tell your PIN to the attendant.

ATM Skimming

Stealing the magnetic tape information in the card with the help of a skimming device is termed as ATM skimming. In this method a clone of card created with the help of a skimming device. This clone of the card holds all magnetic tape information and can work as your original card works. The required thing is the PIN or CVV code. The skimming can be done at ATM machines Slots as well as at POS machines.  The amazing fact about skimming is it takes less than a minute to copy the information one card to another dummy card. PIN and CVV are captured with a small capturing device fitted at some location from where it can record the PIN entered by cardholder and the CVV code printed on the back is noted by attendants for stealing purpose.

Keep eyesight on card while POS Payments to avoid skimming of your card by any device.
ATM skimming is beyond once awareness. Only one should avoid using ATM’s without security guards.


Phishing is the oldest and most used method to steal sensitive information like card number, PIN, CVV, Account Number, Login Password, Transaction Password etc. Fraudsters send trapping email from fake emails pretending to be sent from banking authorities asking your secret information. Sometime they show some great offers and ask to provide sensitive information for processing payments or they may create a fake transaction gateway for stealing your sensitive information. Once they get your card number, PIN, Password they can do their job easily and you got a message of transaction through your account.     

Another method is malicious software or malware-Trojans, viruses, adware designed to copy and transfer data from infected device. This device may be the mobile or PC. A malware is transferred to the device from fake email attachments or other unsecured websites

Avoid accessing unknown PC for transactions.
Avoid opening fake attachment emails.
Never process payment through untrusted online payment gateway.
Never provide Card or back account details in reply to any suspicious email or call from bank.

Sim Cloning
Sim Cloning is also in practice to get OTP. One time password is now used to make the payment secure. Thus card cloning is not any using without OTP. So the fraudsters holds your account details and get a duplicate sim and deactivate the original sim and get the OTP over the next sim for transaction.

In case of fraudulent activities on your account please block the card as soon as possible. Inform the bank officials immediately and file a FIR.

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