Indian Banks are facing a tough situation as Card Skimming has led into a Massive scam and transactions occurring outside Indian Borders has led these financial institutions to face a loss upto Rs 30 Crore in the last one month. The worst affected Banks are HDFC Bank, ICICI Bank, Citibank, SBI Cards and Axis Bank.
In most cases, the Debit / Credit card is in physical possession of the holder who is very much within Indian borders. However, transactions are occurring in Mexico, Spain, United States etc. RBI has already mandated for an additional security check – Extra Password for Online Transactions – Verified by Visa or MasterSecure Code. So despite such security in place, how did this fraud happen ? The password doesn’t come into picture as the Victims Card Details were skimmed [copied without your knowledge] from Transaction Machines, ATMs, or from Credit Card Processing agencies