Article, Paragraph, Essay on “How To Safe is Our Money in The Cashless Economy?” article for Class 10, Class 12, Graduation Classes and descriptive examination

How To Safe is Our Money in The Cashless Economy?

After the surgical strike on Pakistan and days before the government announce its demonetization move influence Indians to shift to a cashless economy run on internet and plastic cards, India report its biggest internet banking security violate.  Over 3 million debit cards and their pin numbers, including those powered by MasterCard and Visa, were stolen by hackers. The Ministry of Finance reported that Rs 2.5 lakh was stolen from the accounts of Indians. The government’s is motivating the people to go cashless for mop up taxes on every rupee being transacted in the country. The millions of Indians are bothered, how safe is their money in the cashless economy, because Internet banking frauds has been increasing many folds and currently constitutes 59% of all the cyber-crimes committed in India.

The ordinary peoples are apprehensive about such a growing rate of online fraud on which they have no control from the government. Their worries exacerbates from the actuality even Home Ministry’s data has disclose that there has been 40% enlarge in online fraud cases in the country.

The government announces its demonetization policy on Nov 8, 2016, India reported its leading internet banking security violate. The Ministry of Finance reported that Rs 2.5 lakh was stolen from the various accounts across the country. Multiple public and private banks were exaggerated by this cyber-attack and every individual using these cards became defenseless across India of their money being stolen.

The debit and credit card cloning made up for 42% of the total internet related banking frauds. The modus oprendi is debit card is skim by fixing of cameras and skimming machines at ATMs to pinch data which is later used for online banking theft.

The PwC statement affirmed that the good news is number of Indians shopping through their mobiles had increased by 800 percent. The shocking news is Indians at the same time have become helpless to various types of frauds while using mobile banking and mobile wallets. The mobile wallets are prone to exploitation and could lead to illegal deduction from the wallet of a customer even without their knowledge.

The description further say, the satire is mobile payments in India are still not governed by any lawful provisions. These expenses are mostly contractual obligation. With lax cyber security, mobile banking is a highly risky operation in India. This is more so because many banks hire a third party merchant to expand and supervise mobile banking applications. This gives the vendor right to use to critical bank account information of the customer which could be misused by some dishonest persons. The terrorization of sim-card swaps and malware affecting mobile phones, virus attacks, identity thefts and phishing are other grim realities of online banking fraud. India’s largest professional association for promotion of digital mode of payment, the Communication Multimedia Association India has issue a declaration that the country needs an suitable legal structure comprise separate digital payment laws and digital payment courts across the country to deal with any such kind of problems.

The telecom industry body CMAI has demand legal construction for data storage and data protection and direct resurgence of the money in case of online frauds. In order to check rising cases of small amounts lost, CMAI has demand establishment of digital courts throughout the country for its quick recovery and adequate punishment to the culprit.  As the digital payments have gone up to 300 percent since demonetization, online wallets are easy targets for attacker. Since wallet transactions are of smaller amounts, many wallets do not use very advanced security measures, making them vulnerable to attacks .Many wallet apps keep their users signed in on their wallet accounts, leaving just a single layer of authorization for a hacker to get through. The RBI issued a circular of the new liability norms for victims of online financial fraud which absolve itself from any responsibility.

The RBI spherical says if a customer does not report the un-authorized transaction to the bank within seven days, he or she has to bear the entire loss of the money lost. Now this is harsh because many a times customers do not know if any such thing has happened as they may be unable to identify an online fraud.

Even if the customers are able to report the online fraud to the bank within seven days, according to RBI circular, he or she is entitled to only Rs 5000 as recompense irrespective of the loss.

With RBI issue the information that 85% of the all report dealings at banks in 2015-16 were through the internet in volume terms, it is high time that the government frame rules and regulation to protected the people’s money deposited in the banks.

Now, people have assurance in the banking and delegate them the dependability to keep their money safe. So it’s the bank that has to give an guarantee to the customers that that money transact through online form is safe and protected and in case of an online fraud, the money lost will be remunerated by the bank.

The delusion of cashless economy can only be realized, only if the government takes ample security measures of any online fraud. It has to give a assurance that in case of violate of system the entire money lost will be remunerated to the victims.