Financial identity theft refers to the abuse of user information buy stealing personally identifiable information for financial gain. Financial identity theft has been an alarming issue in Bangladesh for last few years, as several incident of identity theft came to light. Fraud occurs when variety of fraudulent accounts like new loans, credit cards and lines of credit will be cloned against your original accounts.
Identity theft, with fraudsters taking advantage of weaknesses in the cards, ATMs, POS and banks, is on the rise in Bangladesh. So financial service users of Bangladesh should be cautious to ensure safety of their financial assets. There was many cases of fraud occurred due to identity theft in Bangladesh. In 2017 BDT 25 lacs were stolen using 40 clone cards. Exploiting weaknesses in credit and debit card security systems, fraudsters attacking ATMs, point-of-sales (POS) and banks, which is alarming. So to stay secure from these fraudsters, everyone who use financial products, should follow some measures.
Purse, wallet, mailbox, briefcase, and home are places thieves can steal personal information. Personal computer is a big target for the hacker because computers hold information which is more than enough for hackers to do a mischief. Information passed through internet is another option for hackers to steal the information. Social media, different online gateways for financial transaction are places which can be trap for the financial services users.
Reporting to concerned FI
As soon as you understand that there is a fraud committed using your information, you should notify the FIs quickly so that they can halt the transection occurred and save you from financial losses.
Change all affected account passwords
Change all of your passwords on any account that was affected by fraud. If one of your existing accounts doesn’t have a password, now is the time to create one.
Replace your stolen cards
If any of the cards you use is stolen, immediately you should inform the issuing bank and replace the old one.
Reporting fraud to police
For any fraud case it is wise to inform police about the fraud. It will help the law enforcement agencies to find out the fraudsters easily so that that group cannot commit any further crime.
The global banking sector faced a new wave of change when the news of AntFinancial, Tencent and Xiaomi Corp. won virtual banking license in Hong Kong. Mobile cash is catching on in the world’s less advaced economies, in some cases, leapfrogging traditional banking. M-Pesa (Kenya) and Telenor Microfinance Bank (Pakistan) have set example of how unbanked citizens increasingly use phones to connect to the digital economy.
Modern digital technology has disrupted this legacy banking model on all levels, starting from enhancing customer experience to bring agility in the credit operation to streamlining back-office related activities, by simply leveraging on customer data. In a world where “data is king”, the cutting-edge technological inventions transformed the aura of banking services in the past two-three years. In India, ICICI Bank, HDFC Bank, Axis Bank and SBI are now deploying big data to customer profiling, collaborating with e-wallets to make the payment system more convenient, putting analytics into play in creating loan scorecards and gradually partnering with fintechs to leverage their technology for superior customer experience.
Bangladesh, albeit trailing far behind from neighboring India when innovation in banking service is in question, however, started making strides. The top banks of Bangladesh are showing an interesting trend in the commitment of organizational leadership for offering digital banking services. Few initiatives by local banks for instance, coming up with paperless e-loan for individual purpose, implementing blockchain technology (pilot basis) for trade finance, partnering with e-wallet (iPay and bKash) and so forth. Although regulatory challenge, for instance, eKYC is still there, the good news is it is being addressed from policy level. It is time regulators should undertake more “digital-friendly” initiatives so that local banks start putting data and technology into play to provide one-stop, paperless and on-the-go banking solution to its customers.Download View