Lax security authentication led to card-skimming frauds: RBI

(left) Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank Ltd, G. Padmanabhan, Executive Director, RBI, Kiran Shetty, Regional Vice President & Managing Director, Western Union Budiness-India and Hikmet Ersek, President, Chief Executive Officer and Director, Western Union Company at a press conference the launch "Domestic Money Transfer (DMT)" Services in Mumbai on Tuesday.

The recent instances of illegal debit card-skimming leading to money theft from other bank accounts can be attributed to non-practice of authentication processes in the jurisdiction where the money got withdrawn, Reserve Bank Executive Director G Padmanabhan said today. "The problems relating to illegal card transactions happened because we are interlinked, and the two-factor authentication and the other security measures did not exist in overseas market where these cards were cloned and used," he said while speaking at an event organised by Western Union Money Transfer and Kotak Mahindra Bank ..........

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