Skip to main content

Precautions to be taken in Mobile Banking

Indeed, mobile banking scams have become common these days. Here’re some precautions you need to take before you decide to reach your bank through your mobile phone.

  • FIRST THINGS FIRST
It is true that mobile banking saves you from those bank trips for every small little thing. But before you get lured by the convenience and the ease that mobile banking services provide, make sure that you know everything about the service. Mobile banking is available through many modes. Which one is compatible with your handset is the first thing that, experts say, you should know as a mobile banking user. A user must know what his bank is charging for the service and also the rates that telecom companies levy for connectivity and messaging.

  • SAFETY MEASURES

Apart from the basics, you should be aware of the safety measures that you need to take. As is always prescribed, you should immediately change your password and destroy the password mailer after doing so. Disclosing your password to someone (including bank staff) and using obvious passwords like name, date of birth, etc, is the biggest folly. You should never ever store mobile banking PIN (m pin) in your cell phone memory and should also delete all messages that have your m pin information. If possible, disable the temporary storage. The bank accounts of mobile banking users can be manipulated very easily if they lose their phone or change their phone number or handset. If you do any kind of tampering with your phone or the number, then you should immediately inform your bank, get your mobile banking services blocked and request for a new m pin.

  • FRAUDS! BUT HOW

If you think that mobile banking solutions are all about cutting down the number of times you run to your bank, think again. Mobile banking frauds have become very common these days and it can happen in a number of ways. If you have stored your m pin on sent messages or on the phone and the phone is lost, then in your account can be easily misused. Anyone can easily read your messages as they are sent in clear text. Other than that, if there is virus in your phone and the same has the capability to access your m pin details, then also you can be a victim of fraud.

Frauds can happen by way of cloning of websites. Although most banks have encrypted websites but if they are not then account users can be fooled by fake websites. One of the possible ways of identifying the cloned website is the http address at the top. The fake website can never have the same uniform source locator (URL) and therefore one must always check the address bar properly at the top

MUST KNOW

Modes of mobile phone banking solutions

1) Application based


Download an application on your handset from bank website or through bluetooth

2) SMS based


Interact with the bank’s SMS gateway from your handset using predefined SMS text codes

3) USSD based

Interact with bank using preset codes on USSD with your bank’s published gateways. USSD (Unstructured Supplementary Service Data) is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application program in the network.

4) WAP Based

Use GPRS services on your handset to access bank’s mobile banking site on your handset

Be informed about

• Handset is compatible with which of the above modes
• Bank Charges
• Telecom rates for messaging or connectivity

Safety measures

• Never store your m pin in the phone
• Delete all messages, which have your m pin information
• Check your mobile phone for viruses/ Trojans

Popular posts from this blog

Tata Mutual Fund

Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start. Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed. It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds. The funds of Tata AMC are known to...

UTI Mutual Fund

Even though only a few of UTI’s funds are great performers, this public sector fund house has many advantages that its rivals do not. It has a huge base of retail equity investors and a vast distribution network. As a business, it looks stronger than ever, especially in the aftermath of credit crunch. UTI is, by a large margin, the most profitable fund company in the country. This is not surprising, since managing equity funds is more profitable than debt. Its conservative approach and stable parentage is likely to make it look more attractive to investors in times to come. UTI’s big problem is the dragging performance that many of its equity funds suffer from. In recent times, the management has made a concerted effort to improve performance. However, these moves have coincided with a disastrous phase in the stock markets and that has made it impossible to judge whether the overhaul will eventually be a success. UTI’s top performers are a few index funds, some hybrid funds and its inf...

Salary planning Article

1. The salary (basic + DA) should be low. The rest should come by way of such allowances on which the employer pays FBT and you don't pay any tax thereon. 2. Interest paid on housing loan is deductible u/s 24 up to Rs 1.5 lakh (Rs 150,000) on self-occupied property and without any limit on a commercial or rented house. 3. The repayment of housing loan from specified sources is also deductible irrespective of whether the house is self-occupied or given on rent within the overall ceiling of Rs 1 lakh of Sec. 80C. 4. Where the accommodation provided to the employee is taken on lease by the employer, the perk value is the actual amount of lease rental or 20 per cent of the salary, whichever is lower. Understandably, if the house belongs to a family member who is at a low or nil tax zone the family benefits. Yes, the maximum benefit accrues when the rent is over 20 per cent of the salary. 5. A chauffeur driven motor car provided by the employer has no perk value. True, the company would...

8 Investing Strategy

The stock market ‘meltdown’ witnessed since the start of 2005 (notwithstanding the recent marginal recovery) has once again brought to the forefront an inherent weakness existent in our markets. This is the fact that FIIs, indisputably and almost entirely, dominate the Indian stock market sentiments and consequently the market movements. In this article, we make an attempt to list down a few points that would aid an investor in mitigating the risks and curtailing the losses during times of volatility as large investors (read FIIs) enter and exit stocks. Read on Manage greed/fear: This is an important point, which every investor must keep in mind owing to its great influencing ability in equity investment decisions. This point simply means that in a bull run - control the greed factor, which could entice you, the investor, to compromise with your investment principles. By this we mean that while an investor could get lured into investing in penny and small-cap stocks owing to their eye-...

Debt Funds - Check The Expiry Date

This time we give you an insight into something that most debt fund investors would be unaware of, the Average Portfolio Maturity. As we all know, debt funds invest in bonds and securities. These instruments mature over a certain period of time, which is called maturity. The maturity is the length of time till the principal amount is returned to the security-holder or bond-holder. A debt fund invests in a number of such instruments and each of these instruments would be having different maturity times. Hence, the fund calculates a weighted average maturity, which would give a fair idea of the fund's maturity period. For example, if a fund owns three bonds of 2-year (Rs 30,000), 3-year (Rs 10,000) and 5-year (Rs 20,000) maturities, its weighted average maturity would be 3.17 years. What is the big deal about average maturity then, you may ask. Well, knowing a fund's average maturity is important because it tells you how sensitive a fund is to the change in interest rates. It is ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now