Who owns my Bank account?

 After I opened my first bank account in 1976, I was happy and relieved that I have created a safe place for parking my savings and also deposited my then precious savings of Rs 5/- as opening cash ! Till recently I was peaceful and happy under the impression that my bank account is completely in my control under the watchful eyes of the bank and that no one else can operate the same.

But the thoughts were slightly rattled when the banks started diversifying their interest and focus away from personal banking and debited arbitrarily an amount, though small, from all bank accounts, without any explicit permission from or notice to the customers. Having blatantly trespassed into the bank accounts of the ignorant customers, banks swam through crores of rupees through the sheer number of accounts they could wade into. It was a different matter that those handful of customers who raised a flag were initially ignored and then the unauthorized debit silently reversed after they approached the Ombudsman was neither reported nor noticed by the hapless public, as it was in an era prior to digital and electronic reach.

Almost at the same time or slightly before when I was driving a team creating a banking product for customers across the globe on behalf of an IT major, I raised an eyebrow on the flow of credits into an account but then as a typical customer I failed to follow up on this potential quicksand.

Sometime back, a private bank customer was inadvertently credited with a huge amount, which he also withdrew and the bank had a tough time recovering the lost money and its face.

More recently UCO bank was reported to have credited some of their Kolkata based customers with amount totaling a whooping 820 crores, reportedly due to a 'technical glitch' , majority(!)  of which are reported to be recovered  {Read report here: https://www.mypunepulse.com/uco-bank-technical-glitch-important-steps-of-dos-and-donts-for-banks-and-customers/ }

The news report has also added that ' . . .  caused major apprehension about the security of their accounts and what the customers should do to prevent such activities...' 

This brings us to a question that has so far been treated as irrelevant "Does the bank has the authority to not only debit but also credit my account without my consent" ?

In case of periodical credits like deposits interest, the customer normally authorizes the same through the deposit opening formalities. 

In case of debits like safe deposit locker rent and other charges like minimum balance too customer consent is obtained, but what about other transactions from any source , be it from within or outside the bank?

Does not the bank , as the guardian of our account, hold the responsibility of preventing unauthorized transactions from anyone ? 

Though fictional, the case of a miscreant pumping credits into his adversary's account, calling the attention of tax authorities and bringing the innocent account holder's name into bad reputation , as detailed in Sydney Sheldon's fiction 'If Tomorrow Comes' comes immediately to my mind. With our bank accounts being digitally naked and exposed in the present era where our details are strewn across the web, it is not difficult for one to find the account number of anyone and do this just to tar the image of the receiver, who could be blissfully ignorant of the credits, atleast for some time !

But like the fence chewing the crop, how to prevent my own bank making unauthorized transactions into my account, is the question! If both bank and I are going to transact then who is the owner of 'my' account!

Now that many checks and balances are being provided to the customer to prevent unauthorized debits, can the customer also be allowed to set a 'Credit Transaction Limit', which shall be required even for the banks to make such credits ? Of course same technology could be used to obtain permission for standard transaction like periodical interest to deposit & savings account, locker rent, transactions charges etc.,

Like the saying of  'your freedom ends at the tip of my nose', where does the bank's freedom to access the customers' account ends?

Is it time for the Digital Banking stalwarts in banks to put on their thinking caps along with their legal counterparts and think differently? 

Better it is done early , I feel,  before they stare at some more complex scenarios aided by the emerging cybercrimes cornering them .

Avoiding Bank visits

It is well known that post computerization in the1980s, human resources at bank branches have been dwindling much to the chagrin of the branch heads. Branches which were once buzzing with more staff than the customers at a time are now looking at the tables turned with fewer staff  busily attending to the varied needs of waiting customers giving a real meaning to the single window concept. 

The disgruntled voices from public are also on the rise, about the services or the lack of it from the bank staff. It is not uncommon to hear about rude responses to innocent queries and non-compliance of even routine requests after many days!

Bankmen on the other hand are peeved about steadily decreasing staff strength as even the replacements for retirees (which is on the rise) are not being done regularly have almost stopped and they are forced to take up even non-banking activities when they are struggling to meet the routine jobs! It is a common sight in many branches to see officers coming out of cash cabins and staff are suffocating with rising expectations, we are also told.

Customer whining is more pronounced in the urban and metros due to the increased expectation flowing out of literacy and shorter fuse, while the ones in rural are more patient and tolerant, not grudging to gnaw into their sedentary life to repeat a walk to the bank few days later.  

Rumor mills of a 5 day week for banks instead of the present 6 days is also doing rounds though premiere bodies speaking for the business community, have voiced concerns against the move.  

While the debate rages on, as a customer and a beneficiary it is for the individuals to think differently and get the job done without disturbing the stretched bankmen and thus escaping their ire.

For personal banking, can we not really live without a regular visit to a branch to do our transactions?

Let us ponder. Some of the normal activities of a common customer can be broadly classified under two heads viz., Regular and Periodical , though not exhaustive.

REGULAR

1. Cash Withdrawal
2. Balance check
3. Check transactions in the account
4. Payment of EMIs
5. Payment of Bills , Credit/Debit card bills
6. Payment for utilities (Electricity, Resident Association, Internet Service provider, Cable TV etc., )
7. Remittances / Money Transfer - to account(s) in the same bank or other bank(s)
8. Recurring Deposit
9. Passbook updates
10. Standing instructions

PERIODICAL

11. Insurance Premium payment

12. Water Tax, Property tax

13. Income Tax payment

14. Payment of School/College fees

15. Cash Deposit 

16. Fixed Deposits

17. PPF 

18. Safe Deposit Locker operations

 In my opinion with little efforts , barring Locker operations, everything in the list above { though not  exhaustive} could be done through Internet Banking and ATM.

Some efforts with interest could save the customer a lot of hassles and heartburns in trekking to a branch and sweat it out waiting to be served.

Initially, it may look daunting, but with some practice these operations could be mastered to our own benefit.

Some may claim they are not educated enough to do these operations but, believe me I have seen minimally qualified people doing wonders on the internet and social network.

At the same time , when I conducted some free coaching sessions on basic computer skills, there were many participants, who were well educated and also had served in high positions, but they wanted to know more and learn properly.

So, what matters is not education alone but interest also.

But, many of us are used to start operating any gadgets without reading much the accompanying instructions and that is where it could hurt. I have seen many of my friends and relatives abroad, going fully through the manual of any item bought and then only start using them and that incidentally is the correct way, not to get bitten or victimized.

Recently I came across an incident wherein a person very educated and had also served in very high positions falling victim to a cyber fraud. What saved him from further damage is his awareness in setting the maximum limit in his online banking transactions.

The correct way will be to know the Don'ts first and also not to ignore the DOs as prescribed by the banks themselves. 

Awareness is the Key. Digital transactions have come to stay and it will be difficult to avoid them for long. Shunning them is also not in one's interest as was evidenced by the recent unfortunate pandemic which kept people indoors for months together. What made many people not only survive but also almost lead a normal life , barring driving on the streets, was the digital transactions and its operating knowledge. Whoever was conversant made hay while others suffered. 

From my part, I am keen on educating as many as possible on Cyber Awareness and one of my key initiative is Free online coaching sessions. Being conducted periodically since Feb 2022, over 250 people including seniors, retired senior executives, home makers and students have so far attended and benefitted . More details on this could be had from my website at: Senior-citizen-support

What saddened me in these sessions was the participation of some very highly educated who have also served in very high positions. At the same time, what gladdened me was that such people did not hesitate to come to learn, despite their education, position and age.

I have kept the cyber door open by offering FREE online coaching on 'Basic Computer Skills' to anyone interested at any time, as I feel basic computer operating knowledge is key to keep many cyber frauds at bay. For more on this free coaching sessions, please read at Community Support

So, my suggestion is : let us catch up, know and learn more about these and start operating on our own, saving a lot of leg work to bank branches more populated with customers than staff and relieve the bank men of their ordeal by staying away from them. 

If we transact from home, does it really matter whether the banks work for five days or six days and should we really worry about long bank holidays ? 

Before I sign off, let us have some thoughts to munch:

As a well-wisher, I am willing to offer my knowledge on this to the needy.

As a customer, you may be willing to learn and operate Internet Banking staying away from the branches

My question is what are the banks doing to attract customers more to online banking?

 My suggestion is : why not banks invite their customers periodically and conduct simple coaching sessions and also grab the chance to get closer to the customers more ? 

Happy and Safe Banking !

Is my money safe at the Bank?

A long post , but take a call which is important :

                - Taking away few minutes of your time or your bank balance !

 In the early thirties and forties people were believed to have kept their resources concealed in earthen and other pots buried under the ground and never used to leave the place, for fear of their hard earned valuables being stolen. As days progressed, finding it difficult to become tied to a place and also to protect them from persistent intruders, greater protection mechanisms were evolved when the brick and mortar concepts of banking came in handy. In the early days, banking was more closely confined to the safe keep of the money with some sops like interest which were not exactly attractive but people still accepted it for the sake of security of their money. 

With the elements of perceived risks in private financial organizations being eliminated by the government taking over the management and greater control mechanisms of some banks in 1969 and 1980,  the confidence soared and there was no turning back for such banks after 1970s. Keeping the growing number of customers happy and satisfactory became the main challenge of the banks when 'Customer service' became the buzzword and at times even yardstick for people to differentiate the wheat from the chaff. 

When the banking doors were thrown open to all, making it affordable to every strata of society, people were finding it difficult to continue with personal bank visits for their needs. The accent of service changed from 'Personal' to 'Remote' when the other bigger element of  'security' was not given that much of emphasis, though not ignored. With the pandemic ravaging the world the need for remote banking and contactless transactions became the need of the hour and India is one country which grabbed the opportunity well and now one can walk on the streets and shop without carrying any cash and with only a plastic card and some memorized PINs. 

When people started relaxing about safe banking of their resources came the bombshell of their hard earned savings being nibbled away, mostly without their knowledge and many times even they do their part ignorantly in getting their balance dwindled. Took some time for everyone to realize it was 'easy banking' not only for customers but also for fraudsters !!

Earlier it was reported of accounts being accessed by hijacking the OTP through Simswap like frauds, where the mobile phone was deactivated thus taking control away from the hapless customer  !

But now we hear of even transactions without OTPs . . .

Worse to realize that they not only take away money but also add beneficiaries - which means complete takeover of the management of the account  !! 

While mastering the art of breaking into one's internet bank account with the customer's credentials the fraudsters also devised  ways and means to handle the additional factor of security that was sought; they either sweet talked or hoodwinked the gullible ones with non existent sops like unclaimed bounty or  adorn the robes of government and ask for KYC updates. When these methods were tried, they also  made the victim press the panic button saying the customer's card will be blocked without an instant update. When the gullible and ignorant customer responds falling a prey with any such methods, his bank account is heavily dented with whatever available.

The speed at which fraudsters are gaining ground is not only scary but also dangerous !

And cyber frauds were like the dreaded covid- not sparing anyone , caring little about their status. Right from Technocrats to Civil servants to Bank executives to home makers, the list of victims is endless.

So, how to avoid becoming a prey? Are there not any way out of these traps?

First and foremost is to be aware of what is happening around. How a potential victim is lured? How a soft target is identified? How well the potential victim's support system is assessed.

Yes, Need of the hour is Awareness . Greater Awareness.

About the Modus Operandi

About Preventive measures and 

About Reactionary steps, when one gets sucked 

In this con game which at times even cost the life of the victim, there are greater roles to be played both by the customer and banks themselves. In addition NGOs, Community Support organizations and peoples' well wishers could step in to improve awareness.

Customers:

• Please be aware of all the modus operandi that are being shared in the news papers and channels. Basic awareness of these could instill an additional layer of alert in everyone.
• Keep yourself updated through right channels and guidance
• Avoid public or free Wi-Fi , which are generally insecure for banking transactions
• Every bank periodically comes out with their own protections like setting transaction limit, Card limit, Online limit, eCommerce transaction limit etc., Be aware of these and ensure that it is set properly. 
• Ensure a strong password (minimum of 21 characters- my suggestion) for all your accounts
• Never click on any link shared by anyone even if it is from the bank representatives. Instead go to the bank's website from your system and then update your required inputs
• Never respond to any call/ SMS/Email in haste. Just pause for sometime before reacting to such potential traps.
• Never share your OTP with anyone
• Compulsorily change your password periodically or when you feel you have used it in unsafe environments.
• Change your password on return from domestic or International travel.
• Do not expose your main bank account (wherein your salary, pension or monthly deposit interest is credited) for online payments and other eCommerce transactions. If possible, keep a separate bank account and use only that for such transactions and keep only a minimum balance there.
• Review your internet banking account periodically and verify that only your authorized transactions are shown.
• Review your internet banking account periodically and ensure that only your authorized  payees are there and delete the payee details which are no more required.
• Ensure that your device is secured with a reputed and proven anti virus software
• Avoid mobile banking (my personal thought) and operate internet banking only from your personal system or laptop. I am aware of many who would like to debate on safety of mobile banking vis-a-vis internet banking, but then this is my thought and I am sharing what I am convinced about. 
• Never ignore any SMS on your mobile - It could be a message for a transaction that you may like to contest
• Keep a list of TODO handy (which could include banks' helpline number, Police details, Cyber crime reporting points etc. ., ) that could be used in times of need without loss of time.
• Be clear of the steps to be taken in case of an attempted or successful fraud on you. Never panic and it is IMPORTANT that it is reported within the Golden hours for a possible recovery of loss.

Banks:

 It is to the credit of banks that they are increasingly proactive in introducing new measures to protect the customers interest and also send periodically awareness messages through email and messages.

But some of the open areas , that has room for improvement are:

• In case of multiple high value transactions over online, banks should explore having additional level of security like secondary pin for more than two consecutive transactions. 
• OTPS/Pins  are not to be sent as SMS alone but a part of the OTP in SMS and other part as email { Already it is in vogue in some banks}
• Like setting limits in Cards, banks applications could have limits for number (Not amount alone) of online transactions, which can be modified at the will of the customer
• The 24  x 7 toll free helpline MUST be reachable as it is not in many banks
• Banks need to propagate the cyber crime helpline of 1930 vigorously along with their own.

Awareness Groups:

There are many groups, welfare organizations and NGOs like Cyber Society of India (www.cysi.in) which are already focused on creating greater awareness and sensitizing the public about the prevailing cyber threats.

 The welfare association of the local area could join hands with such NGOs along with the local police station and conduct periodical road shows and sensitize the public about changing methods of fraudsters. 

All said and done, with all the sermons given, only you could lock your house to prevent unauthorized entry of unscrupulous elements.

Remember the following mantras and stay protected :

1. View with caution anything offered free (like unsecure Wi-Fi, Lottery etc.,)-could cost you dear
2. Never click on any link through SMS or email
3. Never respond to calls in haste
4. Double check with the authorities before reacting to alerts
5. Never share your OTP, Password or personal Id documents 
6. Protect your bank account with all the recommendations from the bank
7. Keep following the updates from Bank, Police and welfare groups and never be left behind
8. Keep Praying and hope that you are away from the fraudster's glare

Good Luck !