News

Increasing online fraud force banks to go for insurance cover

Tuesday 4 March 2014 09:51 CET | News

Indian banks are more and more interested in seeking insurance to cover their losses from fraudulent online transactions, including those involving credit cards, as a rising use of plastic money and the ease of internet business potentially increase lenders exposure to cases of data breach.

According to findings from insurance companies, large banks are opting for policies worth USD 8 (INR 500) to protect against fraud, including online. The same data show that mid-sized banks are going for policies in the range of USD 4 (INR 250) – USD 4.84 (INR 300).

In 2012-2013, domestic banks lost a lot of money on account of fraud, according to information obtained through the Right to Information Act. During the period under review, 62 banks filed a total of 26,598 cases related to online frauds. The situation has compounded the woes of the bank sector where lenders are facing huge non-performing assets.
 


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: online fraud, online security, banks, India, insurance cover
Categories: Fraud & Financial Crime
Companies:
Countries: World
This article is part of category

Fraud & Financial Crime