Sniff cyber frauds

Given the spate of online frauds, here are a few precautions experts say you must adhere to.

Phishing today is the biggest threat for internet banking. The term was coined by crackers attempting to 'fish' for accounts from unsuspecting AOL members. Phishers set up phoney websites and email addresses and spam email inboxes with official-looking messages that read something like this: "Your account with our bank has encountered a problem and requires you to login and confirm some details".

Once you click on the the link provided in the email, it directs you to a location that is close to the original site, generating an official facade. Once you have finished submitting your personal details, it will be sent to a person in a remote location who will do as s/he pleases with the provided information, which could include withdrawing money from your bank account or purchasing things in your name. The Anti-Phising Working Group received over 20,000 unique phising reports this May from the worldover. This number does not account for the thousands of unreported incidents.

Security experts insist that online money transactions are on the rise (with almost 20-30 per cent users preferring online transactions). You need to be more suspicious of an unsolicited email than of a stranger knocking at the front door, caution experts. Srikiran Raghavan, regional head, RSA Security asserts: "Banking sites should adopt a two-factor authentication as a comprehensive defence." Two-factor authentication means the use is asked to identify himself at more than one level.

"Most common implementations of a two-factor authentication are provided by a compact electronic device that displays a number. Entering the displayed number into the system that you attempt to login, proves that that you are in possession of the card," details Raghavan. The number displayed by the card changes every 30 or 60 seconds. The system that you are authenticating to, knows the number which should be on the individual's screen. If the numbers match and password is correct, the one is authenticated. To increase security, the electronic device can be protected with a PIN number.

Most credit card applications are made online and about 50 per cent of mortgages, home equity loans and car loans are being signed online. Banks, both private and public sector, along with several financial institutions have reportedly invested lakhs on building safer security systems, in the hope that customers gain confidence in their systems.

While two-factor has been applied successfully by banks in Hong Kong, the U K and other developed countries, Indian banks have just begun toying with the idea. Security companies are busy facilitating security standards for those who are already hooked on net banking and are paying bills or managing mutual funds and retirement funds online.