Bank of Baroda net banking fraud: Unprecedented fraud was discovered during the enrollment process for the Bank of Baroda net banking app, “bob World.” In a blatant violation of the law, a media article purported that several clients’ bank accounts were connected to random people’s cell numbers.
In the light of this fraud, RBI has prevented Bank of Baroda from the on boarding of new customers on its app.
Incertain instances, these strangers committed fraud by taking money from the naive clients’ bank accounts while working together with bank staff.
Read Also: SEBI Bans “Baap of Chart” from Securities Market, Orders ₹17.20 Crore Refund
The problem allegedly kicked off in March 2022 when the top management of the state lender started to pressurise regional branches for increasing the registration of ‘bob World’ customers.
It seems that the personnel was under so much pressure to boost “bob World” downloads that they occasionally linked clients’ bank accounts with their own cellphone numbers. The quantity of downloads increased as staff members’ mobile numbers were able to finish app registrations after receiving the OTP.
In some cases, these mobile numbers belonged to the agents of the bank known as business correspondents (BCs) who operate in the remote areas.
Was it just for downloads?
There were instances wherein the registrations were done solely to increase the downloads. And once these downloads were completed, these accounts were deregistered soon after and the same numbers were used again for linking other customers’ accounts.
An incident was reported where one nodal officer from the regional office – when reported about this – offered his as well as his wife’s mobile number to link to the customer’s bank accounts.
A media investigation has revealed that one recently-retired employee flagged these concerns by writing emails to the top management for putting relentless pressure on employees to increase the downloads.
Read Also: What Are The National Highway Authority Of India Bonds?
This was not an isolated incident; rather, The Reporters’ Collective and Al Jazeera stated in this piece that this was a regular practice throughout the Bhopal zone, UP, Rajasthan, Gujarat, and Jharkhand. This is horrible.
Once these “strangers” had illicitly connected their cell phones to bank customers, some of them proceeded to take money out of their bank accounts. According to media sources, internal audit studies have indicated that 362 clients lost a total of ₹22 lakh to these fraudsters.
Depositors are recommended to abide by these general guidelines to prevent themselves from falling victim to any of this fraudulent activity.
To keep your account safe and secure, heed these advice
Linking mobile number: You must ensure to link your mobile number to your bank account as well to the net banking as soon as you open a bank account. Once your mobile number is linked to the bank account, a new number cannot be linked.
Duly reflecting the balance: Make sure you receive a message upon withdrawal on your mobile phone. Whether the transaction relates to ATM withdrawal or a fund transfer, the debit in the account should be duly reflected in the real time.
Don’t share the OTP: The OTP you receive on your phone should never be shared with anyone. The RBI says that the password should not be shared even with the bank employees.
Suspicious activity: In case there is some suspicious activity, the matter should be immediately reported to the bank and to the cyber cops. It is the bank’s responsibility to recover the money that is transferred illegally on account of the bank’s fault.
Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. Also, www.finnbuzz.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.
