Your debit and credit card details are up for grabs for scammers for as little as $5 or INR 420, as they continue to keep devising new methods to scam innocent people of millions. As reported by the Times of India, several shady Telegram channels and websites are providing scammers with details of the payment cards of shoppers, including the card number, cardholder's name, and CVV.&nbsp;

The situation is particularly dire in the West, as only the aforementioned details are enough to get a payment request processed. For Indians, two-factor authentication through One-Time Password (OTP) is mandatory,&nbsp;however, scammers have seemingly found a new way to circumvent this predicament.

<h2>How do scammers access OTP required for payment?</h2>

Indian police officials were quoted by Times of India as saying how scammers were accessing the OTP by getting the original sim deactivated. The police said, “The hackers put up these debit/credit card details including the victim's name and phone number for sale through shady websites and Telegram channels. Cyberfraudsters buy this data and use it to place a call to the victim's telecom service provider to get your sim card deactivated. They acquire a duplicate sim which they use to gain access to one-time passwords (OTPs), while the victim is oblivious to the deception.”

Watch:&nbsp;No need for a debit card to activate UPI&nbsp;

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Hence, the next time you find your sim card getting deactivated suddenly, sound the warning bell right away as scammers could be minutes away from draining your bank account.

<h2>Who is operating these illegal websites?</h2>

According to the report, the illegal Telegram channels and websites are operated by hackers based out of Russia and Ukraine. "Hackers from Russia and Ukraine primarily sell card details through some websites and Telegram channels. Cards from affluent Western countries can be acquired for approximately $10, while those from Asian countries, including India, can be obtained for a mere $5," said Indian officials.

In January 2022, one such website was tracked and forced to shut down by the authorities, but several identical channels have cropped up of late.&nbsp;

<a href="https://www.wionews.com/business-economy/good-news-for-indias-credit-card-spenders-abroad-on-tax-collected-at-source-tcs-609907">Also read:&nbsp;Good news for India's credit card spenders abroad on Tax Collected at Source</a>

"The Gujarat police have successfully identified five such websites and approximately 45 Telegram channels where these sensitive details are exchanged for cash. We have also identified certain individuals who have availed themselves of these services to defraud unsuspecting victims in Banaskantha, Surat, Ahmedabad, and Gandhinagar,” one police official was quoted as saying by Times of India.

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Your debit and credit card details are up for grabs for scammers for as little as $5 or INR 420, as they continue to keep devising new methods to scam innocent people of millions.

Your debit and credit card details are up for grabs for scammers for as little as $5 or INR 420, as they continue to keep devising new methods to scam innocent people of millions. As reported by the Times of India, several shady Telegram channels and websites are providing scammers with details of the payment cards of shoppers, including the card number, cardholder's name, and CVV. The situation is particularly dire in the West, as only the aforementioned details are enough to get a payment request processed. For Indians, two-factor authentication through One-Time Password (OTP) is mandatory, however, scammers have seemingly found a new way to circumvent this predicament. How do scammers access OTP required for payment? Indian police officials were quoted by Times of India as saying how scammers were accessing the OTP by getting the original sim deactivated. The police said, “The hackers put up these debit/credit card details including the victim's name and phone number for sale through shady websites and Telegram channels. Cyberfraudsters buy this data and use it to place a call to the victim's telecom service provider to get your sim card deactivated. They acquire a duplicate sim which they use to gain access to one-time passwords (OTPs), while the victim is oblivious to the deception.” Watch: No need for a debit card to activate UPI × Hence, the next time you find your sim card getting deactivated suddenly, sound the warning bell right away as scammers could be minutes away from draining your bank account. Who is operating these illegal websites? According to the report, the illegal Telegram channels and websites are operated by hackers based out of Russia and Ukraine. "Hackers from Russia and Ukraine primarily sell card details through some websites and Telegram channels. Cards from affluent Western countries can be acquired for approximately $10, while those from Asian countries, including India, can be obtained for a mere $5," said Indian officials. In January 2022, one such website was tracked and forced to shut down by the authorities, but several identical channels have cropped up of late. Also read: Good news for India's credit card spenders abroad on Tax Collected at Source "The Gujarat police have successfully identified five such websites and approximately 45 Telegram channels where these sensitive details are exchanged for cash. We have also identified certain individuals who have availed themselves of these services to defraud unsuspecting victims in Banaskantha, Surat, Ahmedabad, and Gandhinagar,” one police official was quoted as saying by Times of India. WATCH WION LIVE HERE ×

Debit/credit card details up for sale for $5. Here’s one sign that your bank account is in danger

Digital wallets have made it easier for us to make payments and transfer funds. But it seems many people are still not enjoying the benefits of online payments. But we think that could change with this new feature. Here's more.

No need for a debit card to activate UPI

The uproar over TCS or tax collected at source for international credit or debit card transactions has finally subsided after the Indian finance ministry clarified that there will not be any TCS on spending up to Rs 7 lakh ($8,470).

"To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh ($8,470) per financial year will be excluded from the LRS limits and hence, will not attract any TCS," the ministry said.

Nevertheless, international spending exceeding Rs 7 lakh ($8,470) will be taxed at the rate of 20 per cent with effect from July 1, the ministry added.

The clarification came days after the Indian government decided to bring overseas credit card spending under Liberalised Remittance Scheme (LRS). Debit card spending was already part of LRS.

The announcement came as a much-needed relief for international travelers, who often use credit cards to make foreign currency payments. But that was not before people criticized the levy as "tax terrorism" and sought its rollback.&nbsp;

But the reader will be wrong to think that this TCS policy is new. In fact, it is a part of the Liberalised Remittances Scheme (LRS), which was formulated under the Foreign Exchange Management Act, 1999, or FEMA. Under LRS, Indian residents are allowed to send up to $250,000 per year (April to March) outside India.

"TCS has been applicable on foreign remittances since 1961, and under the LRS since 2004. Over the years, there have been several changes in how much TCS is deducted and in what situation. Prior to the latest amendment, forex instruments, foreign currency, Forex cards, and debit cards&nbsp;attracted a TCS," said Adhil Shetty, CEO, Bankbazaar.com.

Shetty told wionews.com that the only exemption was credit cards, which has&nbsp;now been brought into the ambit of TCS under LRS. This he argued will remove the differential treatment between debit cards and credit cards and capture the total expenditures under LRS.

"Up to Rs 7 lakh, everything is the same. But if you are spending over Rs 7 lakh internationally, through a single or multiple credit card, how will that be tracked and taxed? We need some clarity on that matter," noted Shetty.

The uproar over TCS or tax collected at source for international credit or debit card transactions has finally subsided after the Indian finance ministry clarified that there will not be any TCS on spending up to Rs 7 lakh ($8,470).

The uproar over TCS or tax collected at source for international credit or debit card transactions has finally subsided after the Indian finance ministry clarified that there will not be any TCS on spending up to Rs 7 lakh ($8,470). "To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh ($8,470) per financial year will be excluded from the LRS limits and hence, will not attract any TCS," the ministry said. Nevertheless, international spending exceeding Rs 7 lakh ($8,470) will be taxed at the rate of 20 per cent with effect from July 1, the ministry added. The clarification came days after the Indian government decided to bring overseas credit card spending under Liberalised Remittance Scheme (LRS). Debit card spending was already part of LRS. The announcement came as a much-needed relief for international travelers, who often use credit cards to make foreign currency payments. But that was not before people criticized the levy as "tax terrorism" and sought its rollback. But the reader will be wrong to think that this TCS policy is new. In fact, it is a part of the Liberalised Remittances Scheme (LRS), which was formulated under the Foreign Exchange Management Act, 1999, or FEMA. Under LRS, Indian residents are allowed to send up to $250,000 per year (April to March) outside India. "TCS has been applicable on foreign remittances since 1961, and under the LRS since 2004. Over the years, there have been several changes in how much TCS is deducted and in what situation. Prior to the latest amendment, forex instruments, foreign currency, Forex cards, and debit cards attracted a TCS," said Adhil Shetty, CEO, Bankbazaar.com. Shetty told wionews.com that the only exemption was credit cards, which has now been brought into the ambit of TCS under LRS. This he argued will remove the differential treatment between debit cards and credit cards and capture the total expenditures under LRS. "Up to Rs 7 lakh, everything is the same. But if you are spending over Rs 7 lakh internationally, through a single or multiple credit card, how will that be tracked and taxed? We need some clarity on that matter," noted Shetty.

Need more clarity on taxing international spending of over Rs 7 lakh: Bankbazaar CEO

The Reserve Bank of India (RBI) barred Mastercard from acquiring new customers starting July 22. The payments operator has been barred from adding domestic customers across three categories of cards – debit, credit as well as prepaid.

World Business Watch: RBI bars Mastercard from adding new clients in India from July 22

Most Cubans do not have credit, debit card. To know more watch the video

Crypto in Cuba is Unregulated

If you are the owner of a credit or a debit card, there is a non-negligible chance that you may be subject to fraud, like <a href="http://fortune.com/2017/02/01/credit-card-chips-fraud/" style="background-color: rgb(255, 255, 255);">millions of other people around the world</a>.

Starting in the 1980s, there has been an impressive increase in the use of credit, debit and pre-paid cards internationally. According to an October 2016 <a href="https://www.nilsonreport.com/upload/content_promo/The_Nilson_Report_10-17-2016.pdf">Nilson Report</a>, in 2015 more than US$31 trillion were generated worldwide by these payment systems, up 7.3 per cent from 2014.

In 2015, seven in eight purchases in Europe were <a href="https://www.axa-research.org/en/projects/bruno-buonaguidi">made electronically</a>.

Thanks to new online money-transfer systems, such as Paypal, and the spread of e-commerce around the world &ndash; including, increasingly, in the developing world - which was <a href="https://www.americanbanker.com/opinion/how-digital-payments-can-transform-the-developing-world">slow to adopt online payments</a> &ndash; these trends are expected to continue.

Thanks to leading companies such as Flipkart, Snapdeal and Amazon India (which together had <a href="http://tech.economictimes.indiatimes.com/news/internet/etail-giants-like-snapdeal-amazon-lose-market-share-in-2015-small-etailers-emerge-as-real-winners/51148399">80 per cent of the Indian e-commerce market share in 2015</a>) as well as Alibaba and JingDong (which had upwards of <a href="https://marketingtochina.com/alibabas-tmall-lose-market-share-china">70 per cent of the Chinese market in 2016</a>), electronic payments are reaching massive new consumer populations.

This is a goldmine for cybercriminals. According to the Nilson Report, worldwide losses from card fraud rose to US$21 billion in 2015, up from about US$8 billion in 2010. By 2020, that number is expected to reach US$31 billion.

Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers&rsquo; liability at US$50 as long as the crime is reported <a href="https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards">within 30 days for credit cards and within two days for debit cards</a>. This incentivises banks to make significant <a href="https://www.ovum.com/press_releases/banks-to-boost-spending-on-payment-technologies-in-2016.">investments in anti-fraud technologies</a>.

Cybercrime costs vendors in other ways too. They are charged with providing customers with a high standard of security. If they are negligent in this duty, credit card companies may charge them the cost of reimbursing a fraud.

The types of frauds

There are many kinds of credit card fraud, and they change so frequently <a href="https://www.acorn.gov.au/learn-about-cybercrime">as new technologies enable novel cybercrimes</a> that it&rsquo;s nearly impossible to list them all.

But there are two main categories:

<ul>
	<li>
	card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder&rsquo;s information is stolen and used illegally without the physical presence of the card. This kind of fraud usually occurs online and may be the result of so-called &ldquo;<a href="https://theconversation.com/phishing-scams-are-becoming-ever-more-sophisticated-and-firms-are-struggling-to-keep-up-73934">phishing</a>&rdquo; emails sent by fraudsters impersonating credible institutions to steal personal or financial information via a contaminated link.
	</li>
	<li>
	card-present-frauds: This is less common today, but it&rsquo;s still worth watching out for. It often takes the form of &ldquo;<a href="https://www.thebalance.com/g00/how-credit-card-skimming-works-960773?i10c.referrer=">skimming</a>&rdquo; &ndash; when a dishonest seller swipes a consumer&rsquo;s credit card into a device that stores the information. Once that data is used to make a purchase, the consumer&rsquo;s account is charged.
	</li>
</ul>

<figure class="align-center "><img alt="" src="https://cdn.theconversation.com/files/177347/width754/file-20170707-29852-jgkjk7.jpg" />
<figcaption>Credit card machine is sometimes used in the fraud called &lsquo;skimming&rsquo; in which your card details are duplicated.</figcaption>
</figure>

&nbsp;

The mechanism of a credit card transaction

Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement.

At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant&rsquo;s bank) send and receive information to authorise or reject a given purchase. If the purchase is authorised, it is settled by an exchange of money, which usually takes place several days after the authorisation.

Once a purchase had been authorised, there is no going back. That means that all fraud detection measures must be done during in the first step of a transaction.

<figure class="align-center "><img alt="" src="https://cdn.theconversation.com/files/177349/width754/file-20170707-29852-126ibrx.jpg" />
<figcaption>Buying online is practical and fast&hellip;yet risky when we do not know the vendors or their websites well.&nbsp;</figcaption>
</figure>

&nbsp;

Here&rsquo;s how it works (in a dramatically simplified fashion).

Once companies such as Visa or Mastercard have licensed their brands to a <a href="https://www.thebalance.com/credit-card-issuer-959984">card issuer</a> &ndash; a lender like, say, Barclays Bank &ndash; and to the merchant&rsquo;s bank, they fix the terms of the transaction agreement.

Then, the card issuer physically delivers the credit card to the consumer. To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant&rsquo;s bank.

The bank, in turn, routes the required information to the card issuer for analysis and approval &ndash; or rejection. The card issuer&rsquo;s final decision is sent back to both the merchant&rsquo;s bank and the vendor.

Rejection may be issued only in two situations: if the balance on the cardholder&rsquo;s account is insufficient or if, based on the data provided by the merchant&rsquo;s bank, there is suspicion of fraud.

Incorrect suspicions of fraud are inconvenient for the consumer, whose purchase has been denied and whose card may summarily be blocked by the card issuer, and poses a reputational damage to the vendor.

How to counter frauds?

Based on <a href="https://www.axa-research.org/en/projects/bruno-buonaguidi">my research</a>, which examines how advanced statistical and probabilistic techniques could better detect fraud, sequential analysis &ndash; coupled with new technology &ndash; holds the key.

Thanks to the continuous monitoring of cardholder expenditure and information &ndash; including the time, amount and geographical coordinates of each purchase &ndash; it should be possible to develop a computer model that would calculate the probability that a purchase is fraudulent. If the probability passes a certain threshold, the card issuer would be issued an alarm.

The company could then decide to either block the card directly or undertake further investigation, such as calling the consumer.

The strength of this model, which applies a well-known mathematical theory called optimal stopping theory to fraud detection, is that it aims at either maximising an expected payoff or minimising an expected cost. In other words, all the computations would be aimed at limiting the frequency of false alarms.

My research is still underway. But, in the meantime, to reduce significantly the risk of falling victim to credit card fraud, here are some golden rules.

First, never click on links in emails that ask you to provide personal information, even if the sender appears to be your bank.

Second, before you buy something online from an unknown seller, google the vendor&rsquo;s name to see whether consumer feedback has been mainly positive.

<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/78542/count.gif?distributor=republish-lightbox-basic" width="1" />And, finally, when you make online payments, check that the webpage address starts with https://, a communication protocol for secure data transfer, and confirm that the web page does not contain grammatical errors or strange words. That suggests it may be a fake designed solely to steal your financial data.

&nbsp;

This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/credit-card-fraud-what-you-need-to-know-78542">original article</a>.

In 2015 worldwide losses from credit and debit card fraud was US$21 billion.

If you are the owner of a credit or a debit card, there is a non-negligible chance that you may be subject to fraud, like millions of other people around the world. Starting in the 1980s, there has been an impressive increase in the use of credit, debit and pre-paid cards internationally. According to an October 2016 Nilson Report, in 2015 more than US$31 trillion were generated worldwide by these payment systems, up 7.3 per cent from 2014. In 2015, seven in eight purchases in Europe were made electronically. Thanks to new online money-transfer systems, such as Paypal, and the spread of e-commerce around the world – including, increasingly, in the developing world - which was slow to adopt online payments – these trends are expected to continue. Thanks to leading companies such as Flipkart, Snapdeal and Amazon India (which together had 80 per cent of the Indian e-commerce market share in 2015) as well as Alibaba and JingDong (which had upwards of 70 per cent of the Chinese market in 2016), electronic payments are reaching massive new consumer populations. This is a goldmine for cybercriminals. According to the Nilson Report, worldwide losses from card fraud rose to US$21 billion in 2015, up from about US$8 billion in 2010. By 2020, that number is expected to reach US$31 billion. Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers’ liability at US$50 as long as the crime is reported within 30 days for credit cards and within two days for debit cards. This incentivises banks to make significant investments in anti-fraud technologies. Cybercrime costs vendors in other ways too. They are charged with providing customers with a high standard of security. If they are negligent in this duty, credit card companies may charge them the cost of reimbursing a fraud. The types of frauds There are many kinds of credit card fraud, and they change so frequently as new technologies enable novel cybercrimes that it’s nearly impossible to list them all. But there are two main categories: card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder’s information is stolen and used illegally without the physical presence of the card. This kind of fraud usually occurs online and may be the result of so-called “phishing” emails sent by fraudsters impersonating credible institutions to steal personal or financial information via a contaminated link. card-present-frauds: This is less common today, but it’s still worth watching out for. It often takes the form of “skimming” – when a dishonest seller swipes a consumer’s credit card into a device that stores the information. Once that data is used to make a purchase, the consumer’s account is charged. Credit card machine is sometimes used in the fraud called ‘skimming’ in which your card details are duplicated. The mechanism of a credit card transaction Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement. At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorise or reject a given purchase. If the purchase is authorised, it is settled by an exchange of money, which usually takes place several days after the authorisation. Once a purchase had been authorised, there is no going back. That means that all fraud detection measures must be done during in the first step of a transaction. Buying online is practical and fast…yet risky when we do not know the vendors or their websites well. Here’s how it works (in a dramatically simplified fashion). Once companies such as Visa or Mastercard have licensed their brands to a card issuer – a lender like, say, Barclays Bank – and to the merchant’s bank, they fix the terms of the transaction agreement. Then, the card issuer physically delivers the credit card to the consumer. To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank. The bank, in turn, routes the required information to the card issuer for analysis and approval – or rejection. The card issuer’s final decision is sent back to both the merchant’s bank and the vendor. Rejection may be issued only in two situations: if the balance on the cardholder’s account is insufficient or if, based on the data provided by the merchant’s bank, there is suspicion of fraud. Incorrect suspicions of fraud are inconvenient for the consumer, whose purchase has been denied and whose card may summarily be blocked by the card issuer, and poses a reputational damage to the vendor. How to counter frauds? Based on my research, which examines how advanced statistical and probabilistic techniques could better detect fraud, sequential analysis – coupled with new technology – holds the key. Thanks to the continuous monitoring of cardholder expenditure and information – including the time, amount and geographical coordinates of each purchase – it should be possible to develop a computer model that would calculate the probability that a purchase is fraudulent. If the probability passes a certain threshold, the card issuer would be issued an alarm. The company could then decide to either block the card directly or undertake further investigation, such as calling the consumer. The strength of this model, which applies a well-known mathematical theory called optimal stopping theory to fraud detection, is that it aims at either maximising an expected payoff or minimising an expected cost. In other words, all the computations would be aimed at limiting the frequency of false alarms. My research is still underway. But, in the meantime, to reduce significantly the risk of falling victim to credit card fraud, here are some golden rules. First, never click on links in emails that ask you to provide personal information, even if the sender appears to be your bank. Second, before you buy something online from an unknown seller, google the vendor’s name to see whether consumer feedback has been mainly positive. And, finally, when you make online payments, check that the webpage address starts with https://, a communication protocol for secure data transfer, and confirm that the web page does not contain grammatical errors or strange words. That suggests it may be a fake designed solely to steal your financial data. This article was originally published on The Conversation. Read the original article.

How do you protect yourself from credit card fraud?

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report.

The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October.

The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report.

&quot;The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand,&quot; says the report.

It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go.

As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. &quot;Thus on an annualized basis, debit card transaction is around Rs 24,000,&quot; it said.

It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C.

The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation.

&quot;This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness,&quot; the report said.

The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016.

The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October.

The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion.

This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation.

It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly.

And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets.

Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward.

&quot;This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000,&quot; the report concludes.&nbsp;

(PTI)

The slide in numbers suggests the enormity of the task at hand before the country is transformed into a cashless economy

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report. The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October. The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report. "The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand," says the report. It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go. As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. "Thus on an annualized basis, debit card transaction is around Rs 24,000," it said. It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C. The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation. "This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness," the report said. The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016. The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October. The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion. This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation. It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly. And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets. Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward. "This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000," the report concludes. (PTI)

Demonetisation: Slump in use of cards despite cash scrap

&nbsp;

India&rsquo;s largest mobile payments and commerce platform Paytm has announced registering over seven million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the Paytm payment platform for the first time.

The company is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India.

Backed by a strong payment ecosystem of customers and merchants, Paytm was able to serve over 45 million users in last 10 days alone and over five million new users added since the demonetisation drive.

With offline transactions now contributing to over 65 per cent of the overall business, the company has also expanded its merchant network by 150,000 additional merchants. This will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before.

&quot;From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in adoption of Paytm as a way to pay by both consumers and merchants alike. We are working around the clock to ensure we can enable users and merchants to complete everyday transactions seamlessly,&quot; said Vice President - Paytm, Sudhanshu Gupta.

Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. Paytm is accepted everywhere including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals, kirana shops and many more.

Paytm can also be used to pay at thousands of apps and websites for services like recharges and bill payments, movie tickets, travel bookings, food ordering and shopping. With its assertive focus on mobile payments, the company is inching closer to its aim of making cashless transactions a way of life across India.

(ANI)

&nbsp;

Paytm is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India.

India’s largest mobile payments and commerce platform Paytm has announced registering over seven million transactions worth Rs 120 crore in a day as millions of consumers and merchants across the country try mobile payments on the Paytm payment platform for the first time. The company is currently doing more transactions than the combined average daily usage of Credit and Debit Cards in India. Backed by a strong payment ecosystem of customers and merchants, Paytm was able to serve over 45 million users in last 10 days alone and over five million new users added since the demonetisation drive. With offline transactions now contributing to over 65 per cent of the overall business, the company has also expanded its merchant network by 150,000 additional merchants. This will ensure consumers have more shops in their neighbourhood accepting Paytm than ever before. "From consumers being able to pay for a cup of coffee in metros, to farmers purchasing seeds using Paytm in Kurnool, we are witnessing an exponential increase in adoption of Paytm as a way to pay by both consumers and merchants alike. We are working around the clock to ensure we can enable users and merchants to complete everyday transactions seamlessly," said Vice President - Paytm, Sudhanshu Gupta. Over 10 lakh offline merchants across India now accept Paytm as their preferred payment mode. Paytm is accepted everywhere including taxis, autos, petrol pumps, grocery shops, restaurants, coffee shops, multiplexes, parking, pharmacies, hospitals, kirana shops and many more. Paytm can also be used to pay at thousands of apps and websites for services like recharges and bill payments, movie tickets, travel bookings, food ordering and shopping. With its assertive focus on mobile payments, the company is inching closer to its aim of making cashless transactions a way of life across India. (ANI)

Paytm registers 7 million transactions worth Rs 120 crore in a day

The Indian banking industry has been hit by a major cyber security breach with almost 3.2 million debit cards reportedly compromised. The banks affected&nbsp;by the breach include bigwigs like HDFC, ICICI, Yes Bank, Axis and SBI.

The&nbsp;banks have been sending messages to their customers asking them to change their four-digit security PIN (personal information number) codes.

Even payment gateway companies Visa, MasterCard,&nbsp;and RuPay have raised&nbsp;the issue with&nbsp;the banks concerned. (A payment gateway company authorises&nbsp;payments made by a customer to a merchant like an e-tailer or a brick and mortar store.)&nbsp;&nbsp;

According to a report by the Economic Times, the security breach took place at the Hitachi Payment Services end&nbsp;which&nbsp;provides payment services such as ATMs and&nbsp;point-of-sale terminals.

Loney Antony, MD of Hitachi Payment Services,&nbsp;told Zee Business that according to an interim report there has been no breach. He added that the final report will be out in the first week of November. And that the banks need not panic nor re-issue cards -- just&nbsp;changing the PIN on the debit card of an affected bank&nbsp;is enough.

Security breaches of this sort usually happen when a card gets cloned or skimmed&nbsp;-- the details of the card are copied --&nbsp;during a transaction at a point-of-sale terminal or an ATM.

Breaches like this tend to go viral. If a&nbsp;card-holder of a non-affected bank swipes his card at an&nbsp;ATM of an&nbsp;affected bank, then the non-affected bank also becomes a target.

A breach like this&nbsp;is difficult to contain.

The National Payment Council has directed the Bengaluru-based payments and security specialist company SISA to investigate and conduct a forensic audit.

Customers however need not worry. According to an earlier Reserve Bank of India circular on debit cards:&nbsp;&ldquo;In case of any monetary loss on account of breach of security or failure of the security, the bank is liable to bear the loss.&rdquo;

Thus, if money is wrongful debited from a customer&rsquo;s account, he or she need only&nbsp;inform his or her bank and the bank will be liable to reimburse them.

Rajnish Kumar, managing director of State Bank of India,&nbsp;told Zee Business&nbsp;that they expect the breach to cause them a loss of Rs 10 to 12 lakh --&nbsp;SBI has a total of 20 crore debit card holders -- but their customers will be protected.

(WION)

The affected banks have been sending messages to their customers asking them to change their four-digit security PIN codes

The Indian banking industry has been hit by a major cyber security breach with almost 3.2 million debit cards reportedly compromised. The banks affected by the breach include bigwigs like HDFC, ICICI, Yes Bank, Axis and SBI. The banks have been sending messages to their customers asking them to change their four-digit security PIN (personal information number) codes. Even payment gateway companies Visa, MasterCard, and RuPay have raised the issue with the banks concerned. (A payment gateway company authorises payments made by a customer to a merchant like an e-tailer or a brick and mortar store.) According to a report by the Economic Times, the security breach took place at the Hitachi Payment Services end which provides payment services such as ATMs and point-of-sale terminals. Loney Antony, MD of Hitachi Payment Services, told Zee Business that according to an interim report there has been no breach. He added that the final report will be out in the first week of November. And that the banks need not panic nor re-issue cards -- just changing the PIN on the debit card of an affected bank is enough. Security breaches of this sort usually happen when a card gets cloned or skimmed -- the details of the card are copied -- during a transaction at a point-of-sale terminal or an ATM. Breaches like this tend to go viral. If a card-holder of a non-affected bank swipes his card at an ATM of an affected bank, then the non-affected bank also becomes a target. A breach like this is difficult to contain. The National Payment Council has directed the Bengaluru-based payments and security specialist company SISA to investigate and conduct a forensic audit. Customers however need not worry. According to an earlier Reserve Bank of India circular on debit cards: “In case of any monetary loss on account of breach of security or failure of the security, the bank is liable to bear the loss.” Thus, if money is wrongful debited from a customer’s account, he or she need only inform his or her bank and the bank will be liable to reimburse them. Rajnish Kumar, managing director of State Bank of India, told Zee Business that they expect the breach to cause them a loss of Rs 10 to 12 lakh -- SBI has a total of 20 crore debit card holders -- but their customers will be protected. (WION)

Indian banks hit by massive cyber security breach, 3.2 million debit cards reportedly compromised

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