A recent study by Assocham has reported that the frauds related to debit and credit cards have increased on a large scale in past three years. In the recent year 2,277 complaints of online banking frauds have been registered. It has been also stated that there has been an increase of six folds in the cyber crimes in the last three years with Credit and debit card frauds on the apex.
The rapidly increasing frauds have created a chaos in financial space making consumers unsafe and unsecure regarding the transactions through debit and credit cards. On very continuous basis cases of Phishing attacks of online banking accounts or cloning of ATM/Debit cards are reported.
It has been reported that the increased use smart phone and banking through mobile apps is a major reason in the increase of these frauds. Smartphone users rarely check for security certificates and download apps and other software from third party or unsecured sites. 35-40 per cent of financial transactions are done via mobile devices.