Banks need strong security network for online transactions: RSA

Over 47 crore annual card transactions in the country

PTI | August 9, 2010



A leading security solution provider RSA has said that with increased usage of debit cards for online financial transactions, banks need to strengthen their security network to avoid frauds.

"The usage of debit cards is six times higher than that of credit cards. In such a scenario, it becomes crucial that banks secure online transactions for their customers, especially those using debit cards," RSA Lead Technology Consultant (India and SAARC) Vikas Desai told PTI.

While one can always block payment for credit cards (in case of loss), for debit cards, the amount is withdrawn immediately, making debit card usage more riskier than credit cards, he added.

RSA is the security division of global IT major EMC Corporation.

With more people now using Internet and mobile phones for financial transactions, it has become imperative that banks invest in security solutions to protect customer's account details.

Desai said an estimated 47 crore card transactions, credit and debit put together, take place annually in the country.

He said while the recent mandates by the Reserve Bank of India for an additional authentication pass code have made online transactions more secure, still more steps need to be taken.

"The recent RBI guidelines are a step in the right direction, but banks still need to deploy the right security software to protect the interest of their consumers," he added.

RBI has made it mandatory for an additional authentication pass code, verified by VISA or MSC (Master Secure Code), for online transactions. This is over and above the other codes visible on the card.

The measures are aimed at making e-Commerce more secure for customers, while ensuring an extra security blanket for banks to curb misuse of card for customers shopping online.

"The number of online frauds are increasing with each passing day and banks need to take a proactive role in educating their customers on how they can protect themselves from any such attempts," Desai said.

Also, with the introduction of 3G services for mobile phone users, m-Commerce is expected to take off.

"When 3G is introduced, a large number of transactions would happen on the mobile platform as well, which means extra precautionary measures need to be taken by the banking sector," he said.

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