Despite the report of the ATM fraud/cyber attack on a couple of Indian banks a fortnight ago, India is still safer, compared to many other destinations, said an industry expert.
Even the US — the largest and most advanced economy in the world — still does not have two-factor authentication for credit card usage — a standard that has now become common in India.
Globally, fraud levels are around 4.76 basis points (100 basis points equals one percentage point) of total transactions while in India it is still a fraction — at just around 0.25 basis points, said Deepak Chandnani, CEO, Worldline (South Asia and Middle East). Worldline is a leading player in the digital payments and transaction services space in India. A significant portion of card swipes in the country goes through its IT networks.
“Fraud at ATMs in India have hitherto been extremely low, though this should not make us complacent,” he said.
Following the complaints from 641 customers about their card being misused/hacked, a forensic probe by SISA, a private information security auditor, is on and a report is expected in the next few days.
The exact nature of data compromise is not known yet. Given that fraudulent transactions have been conducted, at least the card-holder names, card numbers, validity dates, CVVs and/or ATM PINs could have been compromised.