Cyber frauds in tandem with online service boom

Font Size

Print

Feedback

Email

Discuss

Save & Share Article

What’s this?

Digg	My Yahoo	Fark
del.icio.us	Newsvine	Reddit

Rate This Article

Rating:  0

The consumerism boom and increased acceptance of online payment mechanisms have resulted in rising frauds in the last one year. According to industry experts, incidents of frauds have touched 3-4% of the turnover, estimated at Rs 20,000 crore.

Unless immediate steps are taken immediately, the problem could aggravate in 2008, warn banks and credit card card issuers.

In addition to frauds, default rate in credit card has also seen a steady increase, touching about 9%. According to Credit Card Management Consultancy, the focus must be on managing recoveries while credit card issuers and banks should also ensure tighter credit quality in a bid to handle the issue.

Issuance of multiple cards to an individual has aggravated the problem. “Consumers tend to shift from one card, once its credit limit is exhausted and this has led to the rise in default rates,” an insider said.