Fintaxwiser
- Posted on
With the fast revolution of information technology worldwide which is definitely easing our life and parallelly making it more dependent which is evolving a new challenge of fraud and social engineering. In today’s scenario, most people whether industries or individuals they are willing to use the latest technology even though they are not so competent to use all the functions of the system which attracts more vulnerable to theft/fraud. Even though, our Banking system is strongly protected from all possible vulnerabilities but threat cannot be secured.
The reported number of Cybercrime is increasing every day besides non-reported. As per data available, around 50,035 cybercrime was reported in year the 2020 which is around11.8% more than of year the 2019. Even though the Government has already introduced Separate laws to tackle cybercrime but it is not so effective due to a lack of understanding of how to save the information and non-physical presence of information cause complication trace the source of fraud.
Here we are going to understand only about Synthetic Identity Theft which is now commonly fraudsters are using and growing.
- What is Synthetic Identity Theft?
Synthetic identity theft is a type of fraud in which a criminal use combination of real and fake information to create a new Identity and use this new identity to take credit card, open a Bank Account or make a fraudulent purchase and many different ways to misuse it. The real information is used in this fraud is stolen from different sources like social media, personal data stolen, hacking, social engineering, e-mail fishing, etc.
- How synthetic identity fraud works
In this technique, fraudsters do not steal actual credit cards or identities, instead, they fabricated synthetic Identity (ID) to draw credit or use to purchase. Synthetic Identity fraud is one of the most popular and fastest-growing ways to commit crime worldwide. Normally it is normally used to commit a financial crime like taking a credit card to misuse and after some time they close it or discard it. Social engineering is one of the most popular ways to gather real information or hack the personal computer to steal identity card and all relevant information to open various Bank account and then take a credit card. The cybercriminal uses this Bank account for some time to build up the credit history/records of these synthetic IDs.
Generally, Cybercriminal uses Personal Identifiable Information of those people who have very less or no credit history in Banking so that Bank does not have pre-existing credit records to make banker convince to open Bank account and then get a credit card.
Many cases recorded and heard in general that people who did not take any credit card or loan in past and later one they get a call from the bank to pay outstanding dues. This is one instance of Synthetic Identity Fraud.
- How to protect from this Fraud/crime
Nowadays it is very difficult to protect it but precaution and awareness can protect from this type of crime. Some of the ways to protect yourself are:
a. Learn more about protecting data yourself.
b. Keep an eye on your personal information.
c. Be careful when any young child in your home, they are more venerable at risk than you.
d. Be careful when you receive any call or email regarding personal information
e. Use a unique password with not less than eight digits with a combination of different symbols
f. Regularly monitor your personal financial records or CIBIL to track any misuse.
g. Destroy any documents with your personal information rather than through them in the dustbin.
h. Whenever you share personal identity documents, please write the purpose thereon and to whom it is being given.
i. Do not download any application in mobile which is suspicious or the source is suspicious.
j. Use antivirus in mobile as well as in laptops to protect or get signals from non-authentic sources.
k. Use Mobile form Banking rather than broadband or network internet
- What to do if you become a victim
Firstly, report to the bank about the fraud or whatever unusual thing is happening with you as the bank has a special cell to address this type of complaint. Thereafter report to the police for FIR.
It is very difficult to trace it immediately but you can be protected from bearing the outstanding amount which was not spent by you.
Although, there is an Information Technology Act 2000 which has provisions under chapter IX section 66C which deals with Identity theft which is a punishable offence.
As per said section, whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh.
Also, there is a separate cell which name is CERT (Computer Emergency Repones Team) which is a team of experts who is responsible for the protection, detection and response to an organization cybersecurity incident as well as alerts and incident handling guidelines. It comes under the Ministry of Electronics and Information Technology which come in force since 2004. The main role is to
a. Emergency measures for handling cyber security incidents.
- Forecast and alerts of cyber security incidents
- Issue guidelines, advisories, vulnerability notes and whitepapers relating to information security practices, procedures, prevention, response and reporting of cyber incidents.
- Collection, analysis and dissemination of information on cyber incidents
- Such other functions relating to cyber security as may be prescribed.
- Opinion
As we are aware of daily reporting of cybercrime is increasing substantially in India, even many cases happened in Bank also. So, there is no alternative in the new age to avoid adopting technology because it makes many things so easy. Parallelly threat is also growing so better to keep updated and be careful of our valuable Information which is also our Assets.
Declaimer: The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only.
Sources of Information:
