Professional Documents
Culture Documents
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An Overview of Banking Sector
Class: SYB&I
Subject : FOUNDATION COURSE
Project Guide
Mrs. Renu Vijay Verma
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An Overview of Banking Sector
Index
Sr.no Topic Page no
1. INRODUCTION: 4 - 11
BENEFITS OF E-BANKING
FUNCTIONS OF E-BANKING
CURRENT SCENARIO OF E-
BANKING IN INDIA
AN INTRODUCTION TO E-BANKING
FRAUDS
DIFFERENT TYPES OF FRAUDS
INTERNET BANKING AND RELATED
FRAUDS
2. REVIEW OF LITERATURE 12 - 14
3. OBJECTIVE OF STUDY 15
4. RESEARCH METHODOLOGY: 16 – 17
SOURCES OF DATA
PRIMARY DATA
SECONDARY DATA
SAMPLE SIZE
LIMITATIONS
6. CONCLUSION 47
7. SUGGESTATIONS 48-49
SUGGESTIONS FOR FINANCIAL
INSTITUTIONS
SUGGESTIONS FOR THE
GOVERNMENT
SUGGESTIONS FOR THE E-
BANKING CUSTOMERS
8. BIBLOGRAPHY 50
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An Overview of Banking Sector
Introduction
Now a day’s financial transactions are carried out on computer, mobile phones and internet
seem to be very difficult for the persons who are not perfect in using such electronic devices.
So there is need of IT to handle lengthy and complex transactions in the banks. IT has made
banking procedures easy, convenient, fast and professional, which is one of the greatest
landmarks in banking history. Traditionally banks were meant only to lend and deposit
money. But today, definition of the bank has significantly changed because of introduction of
wide range of services, which are offered by the banks. Banks today have started contribution
in various other facilities like E-Commerce payments such as payment of electricity bill,
shopping bills, etc. and also collecting come on behalf of their customers. For these facilities
bank charges some amount to their customer with minimum service charges. Information and
communication technology (ICT) has entered and progress in the banks with its identity as
“E-Banking”, which means electronic banking. It can be termed as “Internet Banking, Virtual
Banking, or Online Banking”.
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BENEFITS OF E- BANKING: -
1. Customers need not have to come to bank premises. Transportation time and cost of
customer is saved.
2. Customers receive immediately message after doing financial transaction by using internet
or card etc. which helps banks and customers to maintain total transparency with each other.
3. Customer can quickly decide his future financial transactions as he is able to quickly know
his current balance.
4. Money can be transferred without taking much time by using facilities like, NEFT [Net
Fund Electronic Transfer], ATM Cards, Mobile Banking System, Various Apps such as
PAYTM, BHIM, UPI [Unified Payment Interface].
5. Data can be transferred quickly to the respective persons, organizations involved in the
related transaction.
6. Computers have helped banks to update their records on daily basis and also have
minimized time, manual efforts and saved paper and space etc.
7. Introduction of ATM, and plastic money [i.e. Credit Cards, Debit cards, VISA Cards etc.
has offered a very useful facility to bank customers to deposit or withdraw money, and carry
out other financial transactions from any corner of the world.
8. As the messages are forwarded quickly to the persons involved in the transactions there is
no chance of giving false, wrong, information, and adapting fraudulent practices. [In olden
days people use to tell the number mentioned on currency note as the Cheque Number of the
amount paid to some party by issuing cheque of one particular bank.]
9. Introduction of various hi-tech-software has helped banks to calculate various charges, and
tax amount to be charged and collected in the financial transactions carried out on daily basis.
This has also eradicated the possibility of mathematical mistakes that may happen if
transactions were done manually.
10. E-Banking has authorized bank customer to operate his or her bank account on his own,
Now, Bank transaction has become a two way process, which was only a one way process in
earlier days.
FUNCTIONS OF E-BANKING:-
E-Banking upgrades and updates its customers about various new introductions, services and
facilities planned for them.
Functions of E-Banking can be enumerated as follows:-
1. Customers get immediate access to their current account position.
2. Credit or Debit Card lost can be immediately blocked by customer on his own or he can
get it done quickly by informing the respective bank. The bank can block such lost cards in
few seconds.
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3. In order to maintain secrecy and confidentiality, bank customer can change on his own the
password set for using his credit or debit card.
4. By using internet facility, customers can cross check quickly the foreign exchange rate for
various currencies of different countries and can make correct decisions of investment, Dis-
investment or sale and purchase
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Internet Banking Fraud is a “Fraud of robbery devoted using online technology to illegally
removing money from a bank account of a customer”. The term “Internet Fraud” generally
refers to any type of Fraud scheme that uses one or more online services to current Fraudulent
solicitations to prospective victims, to conduct fraudulent transactions, or to broadcast the
proceeds of fraud to financial institutions or to others connected with the plan. Internet fraud
can take place on computer programs such as chat rooms, e-mail, message boards, or web
sites. Now internet banking is broadly used to check account details, make purchases, pay
bills, transfer funds, print statements etc. Generally, the user identity is the customer identity
number and password is provided to secure transactions. But due to some unawareness or
silly mistakes one can easily fall into the trap of cyber criminals. Cyber crimes are touching
all the facet of our life and our banking transactions are also affected by them. Whether it is
credit card frauds, ATM frauds or Internet banking frauds, cases are occasionally reported in
India. The occurrence and numbers of these cases are growing day by day and there is a
strong need of stringent cyber law in India.
According to SBI Director Smt. Arundhati Bhattacharya, “The banking sector has lost an
unbelievable amount of Rs.97,762/- crores plus due to frauds during the period between 2012
to 2017” Details are as under:-
Year wise financial loss of India- due to E-Banking frauds:
It indicates that the above table that there have been considerably huge losses of money due
to E-Banking frauds in the five year period between years 2012 to 2017. The financial year of
2012-2013 the loss of Rs. 8,646/- crores, then 2013-2014 the financial year increasing fraud
Rs. 11,022/- crores, next financial year 2014-2015 was very increasable amount of fraud Rs.
13,083/- crores, financial year 2015-2016 was amount of fraud Rs. 16,468/- crores, 2016-
2017 financial year was increasing amount of fraud Rs. 22,743/- crores and lastly end of the
December month was amount of fraud is Rs. 25,800/- crores.
DIFFERENT TYPES OF FRAUDS
1. Internet Marketing and Retail Fraud:-
This is a fast-growing area of internet fraud perpetrate by fraudulent internet marketing and
retail sites. A variety of products and services are concerned in it. The customer is tricked by
a legitimate looking site and effectual marketing into giving their credit card information and
CVV number, or sending cash by other means, in exchange for what they believe to be the
goods or services. The goods never turn up, turn out to be Fake or are products worth less
than those advertised. Where a credit card is involved, the perpetrators may also aim to use
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the customer’s credit card information to obtain cash or to make purchases of their own .A
common example of this type of fraud is pornographic websites that advertise free access.
2. Online automotive fraud:-
There are two basic schemes in online automotive fraud: A fraudster posts a vehicle for sale
on an online site, generally for luxury or sports cars advertised for thousands less than market
value. The details of the vehicle including photos and explanation, are typically lifted from
sites such as E-Bay motors or Auto scout 24 and re-posted elsewhere. An interested buyer,
hopeful for a good deal, emails the seller, who responds saying the car is still available but is
located overseas. He then instructs the buyers to send a deposit via wire transfer to commence
the “Shipping” process. The unaware buyer wires the funds and does not discover until days
or weeks later that they were scammed. In another type of fraud, a fraudster contacts the
seller of an automobile, asking for the vehicle identification number (VIN), putatively to
check the accident record of the vehicle
3. ATM Frauds:-
These frauds are usually carried out by using following Modu operand,
A. Negligence by ATM Card owner–by using/exposing his OTP, PIN, and Number publicly,
noting it on commonly exposable paper, on the backside of ATM Card, Saving it in the
Mobile Phone directory etc.
B. By not disposing off, tearing off the printed paper received after completing the financial
transaction and making it available for the fraudulent persons to collect it from the dust bin
etc.
C. Sometime it is also observed that the persons/bank staff/shopkeeper etc. takes out extra
print out of financial transactions carried out using ATM, Debit or Credit card and in CCTV
footage records the PIN, number used by the Card holder.
D. It is also proved that the fraudulent persons are inserting one specially manufactured
electronic Chip, which can work as a SENSOR and record the details of the card inserted in
the socket. Such chip is so nicely and smartly placed in that socket, that by naked eyes it
cannot be noticed.
E. Sometime card holders allow the delivery boys in shops, petrol pumps etc. to carry their
credit, debit card to office at a longer distance where card accessing machine is installed for
collecting the money by using the card, if the customer doesn’t go with that staff to that
place, the staff can note down the details of the card and can take misuse of it in future
4. Phishing:-
This is a smart method operated to cheat innocent and potential persons. The steps involved
in this type of fraud are usually as follows:
A. From internet sources, e-mail, user ID of the customer is collected.
B. From a fake website, fake e-mail account, a mail is delivered to the targeted customer
informing that this–mail is from a very big, World class Organization ,Company, Bank etc.
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and he/she has been chosen a lucky customer, or your CV is found from XYZ sources and
you are a very potential and useful client we are looking for.
C. Customer is informed that his/her CV has been shortlisted for a very lucrative job or for
prize money of very huge amount and is also asked to provide his/her bank details etc.
D. Then customer is provided with an offer letter of the job offered/promised or fake pay
order copy of the offering the promised amount, and is also instructed to deposit XYZ
Amount in their Bank Account in order to carry out foreign Transactions as per the
international law, then only the promised prize amount can be transferred to lucky customer’s
bank account
5. Harming:-
This is carried out by using a prospective source called DNS, a type of machine responsible
for resolving internet names into their real addresses-the “Signposts” of the internet. If the
web site receiving the traffic is a fake web site, such as a copy of a bank’s website, it can be
used to “Phish” or steal a computer user’s passwords, PIN or account number. Note that this
is only possible when the original site was not protected or when the user is ignore warnings
about invalid server certificates.
6. Skimming:-
Skim the information off the cards is another method of accessing customer’s private
information. It is a most commonly used method to obtain illegally any consumers card
information. Skimmers are electronic device that is used by the criminals to capture the data
stored on the magnetic strip of the ATM card. The vital information of customer’s Credit or
Debit card is collected by the fraudsters by using magnetic strip behind the card exposing to
already fitted skimmer device in the ATM or through a small pinhole camera mounted in or
on ATM.
7. Carding:-
Carding is a kind of electronic theft carried out by fraudsters by collecting the details of the
records of purchases made by the card holder customer. Fraudsters find out the website from
the product label and try the same card for the same website for some reasonable small
purchase amount so that doubt cannot be raised or transaction cannot be rejected due to
unavailability of the amount in card holder’s account. Many times the customers receive e-
mail or message informing that, if XYZ is your credit/debit card number, then you are a lucky
customer and you have won prize money of ABC/- Rs. Amount. In order to deposit this prize
money in your account in the Bank, please provide us your Bank details, the unaware
customers get caught into this carding trap and lose their hard earned money.
8. Card Not Present:-
This kind of fraud is potential only when the business deal take place online. Under this
method, the merchant sells the product on the basis of card information given by the
purchaser indirectly through the mail, over the telephone. The merchant cannot confirm
whether the original card holder is authorizing the purchase. But, the merchant can minimize
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the chances of fraud by shipping the ordered products only to the place informed by the
original card holder.
9. Colluding merchants:-
There are chances of merchant joining hands with the fraudsters who pass on credit card
information of the card holder and give payment instructions to the card issuer without the
consent of the original card holder.
10. Cyber squatting:-
Cyber squatting is the act of register a famous domain name and then selling it for a fortune.
Cyber Squatters register domain names identical to popular service provider’s domains so as
to attract their users and benefit from it. This is an issue that has not been covered in the IT
Act, 2000.
11. SMS spoofing:-
It is a relatively new technology which uses the short message service (SMS), available on
most mobile phones and personal digital assistant, to set to who will receive the message
appears to come from by replacing the originating mobile number (Sender ID) with
alphanumeric text. Spoofing has both legitimate uses (setting the company name from which
the message is being sent, setting your own mobile number or a product name) and
illegitimate uses (such as impersonating another person, company, or product).
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15. Holes:-
Hole is any defect in hardware, software or privacy policy that allows hackers to have
unauthorized access to personal computers/laptops/smart phones. The network tools that can
be affected by holes are routers, server software, operating system, firewalls and client.
16. Spamming:-
Spam refers to unsolicited bluck messages being sent through E-Mail, instant messaging or
other digital communication tools. It is generally used by advertisers because there are no
operating costs beyond that of managing their mailing lists. It could also take place in chat
rooms in blogs and more recently within voice over internet conversation. Beyond being a
simple nuisance. Spam can also be used to collect sensitive information from users and has
also been used to spread viruses and other malware.
INTERNET BANKING AND RELATED FRAUDS: -
Triangulation/site cloning: -
Customers get tempt to fraudulent fake websites showing beautiful products and because of
their lack of knowledge, provide their card details manufacture purchases and then their
money is withdrawn by the fraudsters without supplying the products ordered.
• Hacking:-
Hackers/fraudsters obtain unauthorized access to the card management platform of banking
system. Counter felt cards are then issued for the purpose of money laundering.
• Online fraud:-
Card information is stolen at the time of an online transaction. Fraudsters then use the card
information to make online purchases or assume an individual’s identity.
• Use of Social Media:-
A thief can convince an employee that he is hypothetical to be let into the office building, or
he can convince someone over the phone or via Email that he’s supposed to receive confident
information.
• False pretences:-
Someone with the intent to steal commercial information can get a job with a cleaning
company or other vendor exclusively to gain legitimate access to the office building.
• Computer viruses:-
With every click on the internet, a company’s systems are open to the risk of being infected
with nefarious software that is set up to harvest information from the company servers.
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REVIEW OF LITERATURE
Review of the related literature is one of the first steps in the research process. It is relevant to
refer briefly to the previous studies and research in the related areas of the subject to find out
and to fill up the research gaps, if any. Literature on financial services can generally be
found, a number of books are available on banking related aspects as nationalization of
banks, securitization, profitability and productivity etc. But, few studies are undertaken on the
role of technology in the banking services. The productivity of banks in terms of time saving
and attending the customers at the branches has also been improved. The review of following
the studies throws light upon different aspect of E-Banking. To know the impact of E-
Banking on various aspects, the research studies undertaken for the review has been classified
into four categories, i.e.,
1) Studies related Nationalize Banks,
2) Studies related to Customers,
3) Studies Regarding to electronics, and
4) Technology in Banking Sector. It consists of summary of findings of research carried out
in the past on same related topics. This review provides insight to the researcher regarding
what is already known and what remains to be tested regarding the topic of research. It guides
the researcher to avoid duplication and provides useful suggestion for further research on
given topic.
The review is necessary for the following reasons :-
1. It helps in deciding of the methodology, tools and instruments in the study.
2. It gives recommendations for further research.
3. It helps to highlight the gap in existing knowledge
4. It helps in overcoming the problem regarding research studies and defining it in
appropriate manner. Therefore, the aim of this chapter is to take review of the literature on
“E-Banking fraud awareness among the E-Banking Customers”. In this chapter, the studies
have been undertaken by various researchers in India in relation to E-Banking.
Some worth while studies relating to the present topic are being reviewed here:-
1.Siddique and Rehman 2011,
Computer is used as tool for committing the frauds as computer is having huge data stored
including secret data and information also, computer is easily approachable to steal data by
secretly implanting key loggers and logic bombs. The data obtained is misused and after
using it is destroyed so the proof of facts and evidences are also lost sometimes if there is no
proper backup. Mobile is also used as a tool for committing frauds
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2.Jassal and Sehgal 2013, even if few banks have framed security policies they are proved to
be ineffective because there are various loopholes and mistakes or they are incomplete, or
inefficient. In most of the banks security polices for users does not contain the tips for the
users about do’s and don’ts. Security policies for banks are ambiguous and they do not
explain clearly privacy statements to the customers. There are inadequate policies even for
user Ids and passwords. Network providing hardware & software systems are also not
properly designed and upgraded regularly, back up policies are also not framed in proper
manner
3.Soni and Soni 2013, Various mandated recommendation on preventive measures were
given by Gopal Krishna Working Group (GGWG) on safe and secured E Banking services
such as each bank to create a separate information security body that will exclusively work
for information security management, to frame security policy and get it approved from board
and policy to be at least reviewed annually but banks did not implement the same.
4. Deepanshu Pattanayak, Divyesh Satish Kumar Dixit, Kiran Antony and other seven
Person 2016, has stated in their paper titled “Frauds in the Indian banking industry” some
facts in their paper. Authors have focus majority on NPAs that are paralyzing a financial
position of RBI the authors have clearly consider NPAs and other banking frauds that took
place in commercial banks and schedules banks in India. Responsible for this damage. It is
mentioned by authors that in the last three years public sector banks (PSBs) in India have lost
a total of 22,743 crore on account of various banking frauds. According to this author some
of the junior as well as senior level employee of these banks are found and involved in this
fraud the authors have specifically mentioned about Syndicate bank and Indian Bank
employees involved in frauds According to the authors private sector banks have a greater
number of frauds impacted to public sector banks
5.Khanna and Arora 2009, indicated that lack of training and low compliance level of
Reserve Bank of India guidelines are the main reasons of E-Banking frauds. They have
suggested that a regular internal control on E-Banking system can be one of the preventive
measure for which quality training is needed to be provided to the banks staff, the people who
are handling and have internal control over electronic banking system because generally
fraudsters tries to identify loopholes in the control procedures
6.Jamwal and Padha 2009, Reserve Bank of India had formed a Working Group to find out
the challenges faced in internet banking. The group found that the major issues are relating to
technology and security issues, legal issue and regulatory and supervisor issue. On the basis
of the report prepared and submitted by working group to Reserve Bank of India (RBI), RBI
has prepared various guidelines to be followed by banks. Banks are reluctant to implement
the same because there is no monitoring committee set up to keep a check, so in spite of
guidelines provided to take safety and security measures yet the cases of e banking frauds are
on increase every year
7.Kaleem A. and Ahmad S. 2008 :- aims to collect bank employees’ perceptions of the
potential benefits and risks associated with electronic banking in Pakistan. The study shows
that public bank employees who have professional degrees consider ‘minimizing transaction
costs’ and ‘reduction in HR requirements’ as the most and the least important benefits of
electronic banking respectively. Private bank employees having masters or bachelor degrees,
and less than 10 years experience, perceive ‘time saving and minimizing inconvenience’ as
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the major benefits of electronic banking. Branch managers viewed ‘facilitates quick response’
as the most important benefit of electronic banking. Bankers in all segments consider
‘government access to data’ as the biggest risk associated to electronic banking.
8.Krishnamurthy 2006, highlighted the advantages, risks, innovations and convenience
involved in E-Banking. ATM, telephone, internet and cluster banking helped banks to deliver
the products more effectively. The author, in his paper, also described operational efficiency
of E-Banking. It included basic E-Banking, simple transactional and advanced transactional
E-Banking. Each site has offered a differential kind of services to customers. The author has
also commented on some risks such as loss of secrecy of the customers, financial stability,
fraud prone possibilities, eruption of legal claims, etc. So, the author has suggested that banks
should adopt such a strategy in which risks and innovation in banking products move parallel
and simultaneously.
9.Chalam and Nageswara 2006, focused that as the computer touched each and every
aspect of the economy, so banking sector was not an exception to it. The objective of the
study was to find out change in banking sector through the techniques of E-Banking. The
authors evaluated several E-Banking products like ATM, EFT, ECS, EDI, Tele-Banking, etc.
E-Banking had benefited to the individual through anywhere, anytime banking; to traders and
merchants through immediate settlement of payment; to banks through unlimited network,
online banking, attracting and retaining the customers, debit and credit card facilities; and to
the nation through globalization of trade, more exports, more transparency in business, etc.
The researchers concluded that emerging challenge in E-Banking was due to lack of
awareness among people, no cyber laws by government and low density of telephone lines
and low computerization of banking activities. They recommended that banks should adopt
hardware and software security measures, appoint skilled personnel and adoption of digital
signature certification authority so as to tackle the major challenges in E-Banking.
10. Malhotra and Singh 2005, provide theoretical aspect of internet-banking and observe
that internet-banking enables the banks to deliver services at a lower cost than any existing
mode of delivery i.e. $0.01 as survey conducted in US and convenient for customers. The
study reports that internet is not 100 percent secure as it entails risk of operational security,
privacy, reputation, legal etc. The study also analyses the current state of internet banking in
India and concludes that only 33 banks, representing 37% of total Indian commercial banks
are providing transactional banking services in one form or the other where the share of new
private sector banks is higher with all banks providing internet services and 4 banks are fully
transactional where FBs represent only 15%. At the end it suggests that Indian banks should
make effective policies to make it secure to achieve customer confidence, removing all types
of risks with proper built-in-safe guard system to manage these risks.
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RESEARCH METHDOLOGY
The topic of research, “A Study of Awareness about online banking frauds among
people” provides information about the awareness of the E-Banking frauds amongst the bank
customers using E-Banking and gives out the following set of problems.
1. Un-awareness amongst common E-Banking customers regarding various E-Banking frauds
like phishing, skimming, spoofing, spamming, carding and scanning etc.
2. Lack of knowledge amongst E-Banking customers about security measures. The
substantial improvement in technology has led to a phenomenal rise in the services provided
by banks to its customers and with further improvements the number of customers accessing
E-Banking services has increased as well. The study of “Electronic Frauds and Safety
measures” will be able to effectively present the implications of E-Banking frauds in India. It
will also give a representation of the level of awareness amongst E-Banking customers
regarding various E-Banking frauds with the help of statistical data. The measures taken by
various banks to prevent E-Banking frauds can also be understood through this study. This
study would enable the E-Banking customers to carry out their online transactions and usage
of ATMs with safety and confidence.
SOURCES OF DATA:-
Data collection is an important step in the research process. In order to collect data from the
respondents, the researcher approached the respondents with structured questionnaire via
google forms. The instructions were also given in the form . Respondents were asked to give
their responses freely and were permitted to ask their difficulties, if any. After the
respondents had submitted there responses data was collected and conclusions were drawn ,
In this study, both primary and secondary data has been utilized to arrive at certain
conclusions.
Sample size:
$ample size determination is an important and often difficult step in planning an empirical
study. A sample is a subset of a population element, where a population is a theoretically-
specified aggregation of an element. Hence a sample size is a subset of a population. The aim
of the sample was to select estimated population parameters. The information was collected
from the sample size of -----from the population
What is Primary Data?
Primary data is a type of data that is collected by researchers directly from main sources
through interviews, surveys, experiments, etc. Primary data are usually collected from the
source—where the data originally originates from and are regarded as the best kind of data in
research.
The sources of primary data are usually chosen and tailored specifically to meet the demands
or requirements of particular research. Also, before choosing a data collection source, things
like the aim of the research and target population need to be identified.
For example, when doing a market survey, the goal of the survey and the sample population
need to be identified first. This is what will determine what data collection source will be
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most suitable—an offline survey will be more suitable for a population living in remote areas
without an internet connection compared to online surveys
Secondary data is the data that has already been collected through primary sources and made
readily available for researchers to use for their own research. It is a type of data that has
already been collected in the past.
A researcher may have collected the data for a particular project, then made it available to be
used by another researcher. The data may also have been collected for general use with no
specific research purpose like in the case of the national census.
Data classified as secondary for particular research may be said to be primary for another
research. This is the case when data is being reused, making it primary data for the first
research and secondary data for the second research it is being used for.
Secondary data is collected from the following sources :- A. Publications of selected Banks
specially reports, Bulletins, Occasional publications etc. B. Various Books, Research
Journals, Magazines, Reports, web sites and News, etc.
Limitations:
People were rude while filling the questionnaire. They felt its there waste of time, and
ignored it .
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This chapter deals with the collection of data. The data collected is scrutinized, tabulated,
analysed and to end with, it is used for the study purpose. It is also presented at a glance in
the form of different tables, graphs, bar and pie designs and interpretation. In this, effort has
been made to assess the usage of E-Banking services as compared to ATM Banking, Mobile
Banking and Internet Banking as well as which services are easy and economic to find out
awareness along with the Bank Customers about E-Banking Frauds, Credit Card Frauds and
Debit Card Frauds such as Phishing, Skimming, Spoofing, Spamming and Carding. The
assessment has enabled the to come to conclusions concerning various aspects of E-Banking
services and Frauds. Based on the data analysed, researcher has mentioned some vital
suggestions.
There are two types of data, Primary Data and Secondary Data. When data is collected from
the specific source or source of origin, it is called Primary Data, and it was collected by
preparing an open ended questionnaire as well as conducting personal interviews, survey and
analysed the data there after.
Secondary Data is readymade data which is available with sample organizations previous
researchers and in print and E-Media.
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No of respondent 24 27 51
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No of 11 10 14 6 10 51
respondent
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No of 42 14 13 6 75
respondent
The above Table ,is regarding different types of account hold by respondent
customers out of total 51 (100%) respondents, 42 (82.4%) respondents hold saving
account, 14(27.5%) respondents hold current account, 13(25.5%) respondents hold fixed
account, and final sample is minimum Customers 6 (11.8%) respondents hold recurring
account. All are using E-Banking facility
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Above Table , is about view expressed by respondent customers about E- Banking facilities,
out of total 51 (100%) responded, 8 (15.7%) respondent
customers expressed that Internet Banking facility is easy,6 (11.8%) respondent
customers expressed that ATM Banking facility is easy, 24(47.1%) respondent
customers expressed that Mobile Banking facility is easy and finally13(25.5%)
respondent customers expressed that all type of E-Banking facilities as easy
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No. of 14 25 12 51
Respondents
Percentage (%) 27.5% 49% 23.5% 100%
Above Table No, provides information about difficulties in E-Banking. Faced by respondent
customers out of 51 (100%) respondents, 14(27.5%) respondent customers have faced
various difficulties in operating E-Banking facility where as maximum, 25 (49%)
respondent customers have not any difficulty in operating E-Banking facilities, where as
12(23.5%) customers may have faced any difficulties or may not have faced any difficulty
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No. of 34 2 15 51
Respondents
Percentage (%) 66.7% 3.9% 29.4% 100%
Above Table, provides information about views of respondent customers regarding shifting
them from Traditional Banking to E-Banking, out of 51 (100%) respondents,
a. 32 (66.7%) respondent customers are satisfied and
b. 2 (3.9%) respondent customers are not satisfied,
c. whereas 15(29.4%) customers are satisfied as well as unsatisfied with this shift from
traditional banking to E-Banking
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No. of 20 10 8 13 51
Respondents
Percentage (%) 39.2% 19.6% 15.7% 25.5% 100%
pg. 28
An Overview of Banking Sector
No of 43 0 8 51
respondents
Percentage (%) 84.3% 0% 15.7% 100%
pg. 29
An Overview of Banking Sector
Above Table ,indicates that, 31 (60.8%) respondents are aware about phishing
fraud, 20 (39.2%) respondents are aware about spoofing fraud,23(45.1%)
respondents are aware about carding fraud, 27(52.9%) respondents are aware about
skimming fraud, 28 (54.9%) respondents are aware about spamming fraud, and 4
(7.8%) respondents are not aware about any types of frauds
pg. 30
An Overview of Banking Sector
pg. 31
An Overview of Banking Sector
Q. Have you experienced any fraud while using your ATM CARD/ DEBIT
CARD/CREDIT CARD of the bank?
Respondent YES NO MAYBE TOTAL
facing E-Banking
Fraud while
using his/her
own Bank
Cards
No of 10 31 10 51
respondent
Percentage (%) 19.6% 60.8% 19.6% 100%
Above Table ,indicates that, fraud experience use of any cards out of total
51 (100%) respondents,10 (19.6%) respondent customers have
experienced E-Banking fraud while using their own ATM/Debit/Credit Bank
Cards and maximum 31(60.8%) respondent customers have not any faced E-Banking frauds
while using their own ATM/Debit/Credit Bank Cards, where as 10(19.6%) may have faced or
not faced fraud while using ATM card/ debit card/ credit card.
pg. 32
An Overview of Banking Sector
1. Fraud by PIN by 13 12 26 51
ATM (25.5%) (23.52%) (50.98%) (100%)
2 Fraud by 20 23 8 51
unknown calls and (39.21%) (45.09%) (15.7%) (100%)
inquiry
3 Showing ATM 12 7 32 51
card (23.53%) (13.73%) (62.74%) (100%)
transaction by
lucky draw
and lottery
4 No frauds ever 15 11 25 51
experienced (29.4%) (21.6%) (49%) (100%)
Explanation of Types of frauds experienced by the respondents:-
1. Fraud by using PIN of ATM:-
A. 13 (2. 5.5%) respondents agreed on the Fraud by using PIN of ATM.
B. 12 (23.52%) respondents neutral on the Fraud by using PIN of ATM.
C. 26 (50.98%) respondents disagreed on the Fraud by using PIN of ATM.
2. Fraud by unknown calls and inquiry:-
A. 20 (39.21%) respondents are agreed on the Fraud by unknown calls and
inquiry.
B. 23(45.09%) respondents are neutral on the Fraud by unknown calls and
inquiry.
C. 8 (15.7%) respondents are disagreed on the Fraud by unknown calls and
inquiry.
3. Showing ATM card transaction by lucky draw and lottery:-
A.12 (23.53%) respondents are agreed on the Showing ATM card transaction
by lucky draw and lottery.
B. 7 (13.73%) respondents are neutral on the Showing ATM card transaction
by lucky draw and lottery.
C.32 (62.74%) respondents are disagreed on the Showing ATM card
transaction by lucky draw and lottery
pg. 33
An Overview of Banking Sector
pg. 34
An Overview of Banking Sector
Q. Are you sure that your E-Banking transaction is safe while doing online
shopping?
Opinion about YES NO MAYBE TOTAL
safety feeling of
E- Banking
Transaction in
On-line
shopping
No. of 28 4 19 51
respondent
Percentage 54.9% 7.8% 37.3% 100%
(%)
pg. 35
An Overview of Banking Sector
Q. By which way your Banks assures you, that there will not be any type of fraud in E-
Banking transaction?
Respondent’s response about efforts taken by Bank
Sr.no Efforts taken by Agree Neutral Disagree Total
bank
1. By sending SMS 48 2 1 51
Alert (94.12%) (3.92%) (1.96%) (100%)
2. Sending information 34 14 3 51
by e-mail (66.67%) (27.45%) (5.88%) (100%)
3. Orally when 22 20 9 51
customer is (43.14%) (39.21%) (17.65%) (100%)
physically present in
the bank
4. By conducting 17 15 19 51
awareness programs (33.33%) (29.41%) (37.26%) (100%)
5. Through 33 15 3 51
advertisement in (64.7%) (29.41%) (5.9%) (100%)
various media
pg. 36
An Overview of Banking Sector
pg. 37
An Overview of Banking Sector
pg. 38
An Overview of Banking Sector
pg. 39
An Overview of Banking Sector
1. Do you 11 8 32 51
response to (21.57%) (15.69%) (62.74%) (100%)
fake call
regarding
E-Banking
2. Do you 3 15 33 51
share your (5.88%) (29.41%) (64.70%) (100%)
ATM pin
with others
3. Do you 6 19 26 51
allow other (11.8%) (37.25%) (50.98%) (100%)
person to
use your
ATM card
4. Do you tell 6 18 27 51
your E- (11.8%) (35.3%) (52.94%) (100%)
Banking
password to
others
5. Do you tell 5 21 25 51
your OTP (10%) (41.17%) (49.01%) (100%)
number to
other
person
pg. 40
An Overview of Banking Sector
a. It indicates that, minimum 5 (10%) respondents agreed that they share there OTP
number with others and
b. 25 (49.01%) respondents disagree share their OTP Number with others,
c. whereas 21(41.17%) respondents have answered neutral to this question.
pg. 41
An Overview of Banking Sector
Q. Do you think that transactions done with the help of ATM Card, Debit
Card, Credit Card and Online Banking are secured and safe?
Respondent’s opinion about safety of E-Banking Transactions
Agree Neutral Disagree Total
No of respondent 17 32 2 51
Percentage (%) 33.3% 62.74% 3.92% 100%
pg. 42
An Overview of Banking Sector
Q. What is your opinion about chances of frauds you may face while Using E-Banking
service?
Respondent may face the fraud
Agree Neutral Disagree Total
Phishing 36 12 3 51
(70.5%) (23.5%) (6%) (100%)
Spoofing 15 28 8 51
(29.4%) (55%) (15.6%) (100%)
Carding 26 17 8 51
(51%) (33.3%) (15.7%) (100%)
Skimming 20 20 11 51
(39.2%) (39.2%) (21.6%) (100%)
Spamming 29 12 10 51
(56.9%) (23.5%) (19.6%) (100%)
Explanation about Respondent’s response about the type of fraud they may face :-
1. Phishing:
a. Maximum, 36 (70.5%) respondents agreed that they may face phishing fraud.
b. 12 (23.5%) respondents have respondent neutral to the fraud of phishing they may
face.
c. Minimum, 3(6%) respondents have disagreed that they will not face phishing
fraud.
2. Spoofing:
a. 15 (29.4%) respondents have agreed that they may face spoofing fraud.
b. Maximum, 28 (55%) respondents have respondent have respondent neutral
about-facing spoofing fraud.
c. Minimum, 8 (15.6%) respondents have disagreed that they will not face spoofing
type of fraud.
3. Carding:
a. Maximum, 26 (51%) respondents agreed that they may face carding type of
fraud.
b. 17 (33.3%) respondents have respondent neutral to the fraud carding they may
face.
c. Minimum, 8 (15.7%) respondents disagreed that they will not face carding
type of fraud.
pg. 43
An Overview of Banking Sector
4. Skimming :
a) 20 (39.2%) respondents have agreed that they may face skimming type of fraud.
b) 20(39.2%) respondents have respondent neutral that they may face skimming
fraud.
c) Minimum, 11 (21.6%) respondents have disagreed that they will not face
skimming type of fraud.
20 Spamming:
a. Maximum, 26 (56.9%) respondents have agreed that they may face spamming type
of fraud.
b. 12 (23.5%) respondents have respondent neutral to the fraud spamming they may
face.
c. Minimum, 10 (19.6%) respondents have disagreed that they will not face spamming
fraud.
pg. 44
An Overview of Banking Sector
Above Table, indicates that the Respondents as per suggestions for improvement regarding
E-Banking service
1. Providing training to customers about E-Banking:
a. Maximum, 50(98%) respondents have agreed that training should be provided to
customers regarding e-banking.
b. 1 (2%) respondent have respondent neutral regarding the training of customers.
c. 0 respondent have disagreed to the point that no training should be provided to
customers regarding e-banking.
pg. 45
An Overview of Banking Sector
pg. 46
An Overview of Banking Sector
Conclusion
In this chapter an attempt is made to present the conclusions based on previous chapters. The
study of E-Banking services and Frauds was carried out use primary sources as well as
secondary sources of information. The information thus provided was segregate on the basis
of various socio-economic parameters and then analysed in tabular as well as graphical
format. Conclusions have been drawn on the various segregations on the basis of the
analytical tools. These conclusions have provided base on which the researcher was able to
meet the objectives of the study. The rational behind the study was verified on the basis of
these conclusions as well as the final conclusions that were drawn from the various
segregations have enable the researcher to pin point the exact level of awareness amongst E-
Banking customers about E-Banking services and the potential risks associated with them
while availing them, suggestions are also given for creating awareness about E- Banking
frauds and adopt proper safety and security system for banking industry
CONCLUSIONS:-
1. There is no much research work found done on E-Banking frauds and safety measures.
2. Awareness about E-Banking frauds and safety measures has not been found spreaded to
mass of people it is found that it is still restricted only in the group of average educated
person.
3. Major responsible organization’s such as banks, Govt., organization, educational
institutions, training centres, NGOs, etc. none of them have found made any committed
efforts for creating awareness in people regarding E-Banking frauds and safety measures.
4. The data collected about quantum of E-Banking frauds has been found increasing in every
year despite of continuous education, training, introduction of new software introduction of
new technology applied for preventing E-Banking frauds
and applying safety measures. The correct reason for this scenario is still not known.
5. Majority of population still believe and use traditional banking pattern just because of
having fear of risks involved in operating E-Banking transaction or due to incompetency of
handling Electronic gadgets.
6. Many times internet connectivity is on toss and E-Banking transactions get held up for
long duration this is critical problem.
7. Banks have started new methodology to bring down risk factors concern with E-Banking
frauds efforts such as linking Aadhar card number, PAN number, Biometric identification
number and digital presence of customers.
8. E-Banking has provided beautiful opportunity to people for effortless shopping
through online shopping. That is why people are preferring online shopping and E-Banking
industry.
pg. 47
An Overview of Banking Sector
SUGGESTATIONS
SUGGESTIONS FOR FINANCIAL INSTITUTIONS: -
Financial institutions should carry out customer awareness about E-Banking Frauds
by organizing seminars, workshops on the subjects.
Regular warning and alert mails should be sent to the customers concerning E-
Banking operational Safety measures.
Multi-layered Security is the best clarification against E-Banking Frauds, hence
password protected debit card swipes, increase in ATM security, and verification of
authentication by thumb scan and retina scan should be implement on compulsory
basis.
Banks should distribute brochures creating awareness about E-Banking Frauds at
ATMs, bank branches as well as public places and Compulsory usage of virtual
keypads, password protected pages for online transactions.
Use of visual as well as print media for creating customer awareness through
advertisements.
SUGGESTIONS FOR THE GOVERNMENT: -
The Central and State Government should make use of public place like railway and
bus stations, airports for creating customer awareness using posters, announcements
and visuals.
RBI should take help of Mobile Network Service providers for sending bulk
messages to citizens, warning them about potential E-Frauds.
The Governments should control the use of personal mobile number holder
information by Mobile facilities or Internet services providers.
RBI should issue general circulars to all private as well as public sector banks
regularly to ensure creation of awareness about E-Banking Frauds. It should also
monitor the steps taken by the financial institutions in ensuring E-Banking
operational Safety.
Governments should use mass media on a large scale for creating customer
awareness. Celebrities should also be used to extend the message of E-Banking
Safety via advertisements in News Papers, Televisions and Radio.
SUGGESTIONS FOR THE E-BANKING CUSTOMERS: -
The E-Banking customers are advised to have unique passwords which can not be
guesses by the other people. Do not use password like date of birth, vehicle number,
age, your name/middle name, name of children, phone number, personal code, simple
numbers like 12345, etc. try to have an alpha numeric password change your
password regularly, remember your password, and never write it down.
It is a good idea to sometimes log in and check the record for any strange or
unexpected transaction.
Crook in the Online Banking world regularly send emails that seem to be from
legitimate financial institutions. These emails can appear to believable because they
contain the logo of a real online bank. However, these emails often contain a link that
leads you to a fake site considered to lure you into compromise personal information.
pg. 48
An Overview of Banking Sector
These suspicious emails can be easily recognized because they will usually fail to
address you correctly, they contain many grammatical errors and they have links to
suspicious or unfamiliar domains.
The customers are advise to avoid internet banking or accessing sensitive information
by using Wi-Fi from a local cyber cafe as it may not be secure.
Obtain on-line banking direction and Safety tips from your financial institution. If
someone contacts a user via E-Mail or the Internet and claim to be a representative
from his/her financial institution, do not give them any information. The user should
contact his/her financial institution to verify the request.
Before submitting bank details or other sensitive information the following checks
will help ensure that the site uses encryption to protect our personal data: if the
address bar is visible, the URL should start with ‘https://’ (‘S’ is stands for secured)
rather than the usual ‘http://’ please note that the fact that website is using encryption
doesn’t necessarily mean that the same is legitimate. It only tells us that data is being
sent in encrypted form.
Anti–virus and firewall protection keeps a computer safe from viruses that can steal
space on user computer’s hard drive or ROB Personal information from them. In the
ultimate analysis, the issues of E-Banking in India must be reconciled with a safe and
secure banking environment. The human being is the weakest link in the security
chain and they must be made aware about the dangers of online disclosure for the
successful implementation of E-Banking and M-Banking in India
pg. 49
An Overview of Banking Sector
BIBLOGRAPHY
https://shodhganga.inflibnet.ac.in:8080/jspui/handle/10603/230016
https://www.jardcs.org/abstract.php?id=1815
https://www.researchgate.net/publication/
345805957_Customers'_awareness_and_knowledge_level_of_fraudulent_acts_in_electronic_
banking_in_Ghana_evidence_from_a_universal_bank
https://www.academia.edu/27182517/
_A_Study_on_The_Impact_of_Online_Banking_Frauds_Customers
https://www.surveymonkey.co.uk/r/RLHPWT5
pg. 50