Reserve Bank of India moves to check credit card frauds

RBI

Fighting card fraud

In a response to rising credit card frauds, the Reserve Bank of India (RBI) has asked banks to bar international usage of debit and credit cards unless the feature is specifically requested by customers. Furthermore, blocking cards through a text message request has also been suggested as a feature for banks to adopt.

Currently, almost every card issued by banks in India can be used oversees or via global e-commerce transactions. In addition the recovery process for customers who have had their card misused or stolen is too lengthy over the phone. As a result, deactivating cards via sms would enable customers to react to fraud and misuse much quicker.

“With cyber-attacks becoming more unpredictable and electronic payment systems becoming vulnerable to new types of misuse, it’s imperative that banks introduce certain minimum checks and balances to minimise the impact of such attacks and to arrest/minimize the damage,” RBI said in a circular to all banks prescribing a host of tighter security standards for card payments and card accepting swipe machines. 

RBI’s advocated norms push for EMV integration with MagStripe cards to be replaced by EMV Chip for customers who have used their cards internationally. Other measures to be considered including the adoption of greater real time fraud monitoring technology, such as adaptive authentication at the earliest. 

Related reading

new york barclays
company card killer Pleo
Cheque
boom

Leave a comment