According to a research conducted by Assocham and PwC, financial frauds led to approximately USD 20 billion in direct losses annually.
With the rise in smartphones and younger and more digitally savvy populations, banks have been vying to get a larger share of the customer’s digital wallet. However, in this process, the banking applications by lenders are becoming increasingly vulnerable to risks such as phishing, identity theft and card skimming.
Findings indicate that 74% of the population has mobile phones and this has led to a steady rise in banking on the go. The most common types of frauds in the banking sector as of now includes identity thefts, internet banking related frauds such as hacking and online fraud and siphoning of funds by taking the customer’s data.
However, banks assure that transacting via the mobile phones or on the internet is secure as all the transactions necessarily require a two-factor authentication.
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