E Banking Frauds

A Project On
“E-BANKING FRAUDS”
A Project Submitted to
University of Mumbai for partial completion of the degree of

Master In Commerce (Banking & Finance)
By
MR. ARTHESH GOKHALE

ROLL NO. 18
Under the Guidance of

Dr. RASHMI MAURYA
Lecturer at K.P.B. Hinduja College Of Commerce
Submitted At
K.P.B. HINDUJA COLLEGE OF COMMERCE
315, NEW CHARNI ROAD, MUMBAI
400004
February 2024
CERTIFICATE
This is to certify that MR. ARTHESH GOKHALE has worked and duly
completed his Project Work for the degree of Master in Commerce (Banking
& Finance) under the Faculty of Commerce and his project is entitled, “E-
BANKING FRAUDS” under my supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University.
It is his own work and facts reported by his personal findings and
investigations.
Co-ordinator Guiding Teacher
External Examiner Internal

Examiner
Principal College Seal

Date Of Submission: January 2024
DECLARATION
I the undersigned Mr. Arthesh Dhanesh Gokhale hereby, declare that the
work embodied in this project work titled , “E-BANKING FRAUDS” forms
my own contribution to the research work carried out under the guidance of
Dr. Rashmi Maurya is a result of my own research work and as not been
previously submitted to any other University for Degree or Diploma.
Wherever reference has been made to previous work of others, it has been
clearly indicated as such and included in the bibliography.
I hereby further declare that all the information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.
ARTHESH DHANESH GOKHALE

ROLL NO. 18
ACKNOWLEDGEMENT
To list who all have helped is difficult because they are numerous and the
depth is enormous.
I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of the project.
I take his opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank Principal, Dr. MINU MADLANI for providing the necessary
facilities required to complete this project.
I take this opportunity to thank our Coordinator Dr. RASHMI MAURYA for her
moral support and guidance.
I would also like to express my sincere gratitude towards my project guide

Dr. RASHMI MAURYA whose guidance and care made the project
successful.
I would like to thank my College Library for having me provided various

reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my PARENTS and
PEERS who supported me throughout my project.
INDEX
Chapter Title Page No.

no.
1 INTRODUCTION
1.1 INTRODUCTION TO E-BANKING
1.2 DEFINITION OF E-BANKING
1.3 BENEFITS OF E- BANKING
1.4 FUNCTIONS OF E-BANKING
1.5 DEVICES OPERATED IN E-BANKING
1.6 CURRENT SCENARIO OF E-BANKING IN INDIA
1.7 AN INTRODUCTION TO E-BANKING FRAUDS AND
SAFETY
1.7.1. DEFINITIONS OF “FRAUD
1.7.2. E-BANKING FRAUDS
1.7.3. DIFFERENT TYPES OF FRAUDS
1.7.4. INTERNET BANKING AND RELATED FRAUDS
1.7.5. E-BANKING SAFETY
1.7.6. BASIC PRINCIPLES OF INFORMATION SECURITY
1.7.7. SECURITY POLICY
1.7.8. SIMPLE SAFETY TIPS FOR USING ATM CARDS
1.7.9. RECOMMENDATIONS
1.7.10. CUSTOMER PROTECTION ISSUES
1.7.11. ISSUES IN ADMINISTRATION OF SYSTEMS AND
APPLICATIONS
1.7.12. SECURITY MEASURES
1.8. RBI’S INITIATIVE FOR DIVERSIFIED USE OF E-
BANKING FACILITIES
1.9. TECHNOLOGICAL DEVELOPMENT IN INDIA
CONCERNED WITH E-BANKING
1.10. CHAPTER SCHEME
2 RESEARCH METHDOLOGY
2.1 INTRODUCTION
2.2 STATEMENTS PROBLEMS
2.3 OBJECTIVES OF THE STUDY
2.4 HYPOTHESIS OF THE STUDY
2.5 SCOPE AND LIMITATIONS OF THE STUDY
2.6 SOURCES OF DATA
2.7 SAMPLE DESIGN
2.8 PERIOD OF STUDY
2.9 TOOLS AND TECHNIQUES OF ANALYSIS
2.10 LIST OF PUBLIC SECTOR BANKS IN NANDED DISTRICT
2.11 PROFILE OF SELECTED BANK
2.12 SAMPLE FRAME IN THE SELECTED BANKS TOTAL
NUMBER OF RESPONDENTS
3 REVIEW OF LITERATURE
3.1 INTRODUCTION
3.2 REVIEW OF LITERATURE
3.3 RESEARCH GAP
3.4 REFERENCES
4 ANALYSIS AND INTERPRETATION OF DATA
4.1 INTRODUCTION
4.2 SOURCES OF DATA COLLECTION
4.3 ANALYSIS OF DATA COLLECTION
4.4 TESTING OF HYPOTHESIS
5 FINDINGS, CONCLUSIONS AND SUGGESTION
5.1 INTRODUCTION
5.2 MAJOR FINDINGS OF THE OVERALL STUDY
5.3 CONCLUSIONS
5.4 SUGGESTIONS
5.5 SCOPE FOR FUTURE RESEARCH STUDY
6 SUMMARY
7 BIBLIOGRAPHY
CHAPTER 1 INTRODUCTION
1.1 INTRODUCTION:-
Now a day’s financial transactions are carried out on computer, mobile phones
and internet seem to be very difficult for the persons who are not perfect in using
such electronic devices. So there is need of IT to handle lengthy and complex
transactions in the banks. IT has made banking procedures easy, convenient, fast and
professional, which is one of the greatest landmarks in banking history.
Traditionally banks were meant only to lend and deposit money. But today,
definition of the bank has significantly changed because of introduction of wide range
of services, which are offered by the banks. Banks today have started contribution in
various other facilities like E-Commerce payments such as payment of electricity
bill, shopping bills, etc. and also collecting come on behalf of their customers. For
these facilities bank charges some amount to their customer with minimum service
charges.
Information and communication technology (ICT) has entered and progress in
the banks with its identity as “E-Banking”, which means electronic banking. It can
be termed as “Internet Banking, Virtual Banking, or Online Banking”. When bank
transactions are conducted electronically then it is termed as “E-Banking”. It is
paperless, easy, and speedy, without geographical boundaries and it incurs low cost.
In E-Banking, majority of bank transactions are carried out through internet, so
internet is backbone of E-Banking.
E-Banking is more of science than talent, as it is performed by using different
electronic devices such as computers, telephone, and mobile, internet etc. It helps in
bringing technology in the hands of clients and making them operate and manage on
their own. Today’s young generation is well versed with the use of internet and is
expected to be the future online customers. Financial transactions to be carried by the
banks will be totally by using computers and technology.
Internet has made it possible to bring both customers and suppliers together to
share critical business information. For examples, Indentures Global Trust Services
helps banks and their customers carry out secure payments online and to deal with
other risk management system. The roles of asymmetric information, adverse
selection, and moral hazards have been examined extensively in the literature in
connection with lending. Today, a substantial amount of lending is done over the
internet.
Through E-Banking different types of services are offered by banks to its
customers. Services such as, knowing immediately their account position, last three
transactions, mini account statement, charges deducted for various transactions done
by the customers using internet and cards etc. sending messages to the customers
educating about fraudulent practices adapted in the market by notorious and
fraudulent persons, organizations etc.
E-Banking is about use the infrastructure of the digital age to generate
opportunities, both local and global. It enables the impressive lowering of transaction
costs, and the creation of new types of banking opportunities that address the barriers
of time and distance.
1.2. DEFINITION OF E-BANKING:-
1. According to R.K. Uppal, “Electronic Banking is electronically handling of all

types of banking business, primarily over the internet”.
2. According to McMillan, “E-Banking is the process of conducting banking with the
use of electronic tools and facilities”.
1.3. BENEFITS OF E- BANKING:-
1. Customers need not have to come to bank premises. Transportation time and cost
of customer is saved.
2. Customers receive immediately message after doing financial transaction by using
internet or card etc. which helps banks and customers to maintain total transparency
with each other.
3. Customer can quickly decide his future financial transactions as he is able to
quickly know his current balance.
4. Money can be transferred without taking much time by using facilities like, NEFT
[Net Fund Electronic Transfer], ATM Cards, Mobile Banking System, Various Apps
such as PAYTM, BHIM, UPI [Unified Payment Interface].
5. Data can be transferred quickly to the respective persons, organizations involved
in the related transaction.
6. Computers have helped banks to update their records on daily basis and also have
minimized time, manual efforts and saved paper and space etc.
7. Introduction of ATM, and plastic money [i.e. Credit Cards, Debit cards, VISA
Cards etc. has offered a very useful facility to bank customers to deposit or withdraw
money, and carry out other financial transactions from any corner of the world.
8. As the messages are forwarded quickly to the persons involved in the transactions
there is no chance of giving false, wrong, information, and adapting fraudulent
practices. [In olden days people use to tell the number mentioned on currency note
as the Cheque Number of the amount paid to some party by issuing cheque of one
particular bank.]
9. Introduction of various hi-tech-software has helped banks to calculate various
charges, and tax amount to be charged and collected in the financial transactions
carried out on daily basis. This has also eradicated the possibility of mathematical
mistakes that may happen if transactions were done manually.
10. E-Banking has authorized bank customer to operate his or her bank account on
his own, Now, Bank transaction has become a two way process, which was only a
one way process in earlier days.
1.4. FUNCTIONS OF E-BANKING:-
E-Banking upgrades and updates its customers about various new introductions,
services and facilities planned for them. Functions of E-Banking can be enumerated
as follows:-
1. Customers get immediate access to their current account position.
2. Credit or Debit Card lost can be immediately blocked by customer on his own or
he can get it done quickly by informing the respective bank. The bank can block such
lost cards in few seconds.
3. In order to maintain secrecy and confidentiality, bank customer can change on his
own the password set for using his credit or debit card.
4. By using internet facility, customers can cross check quickly the foreign exchange
rate for various currencies of different countries and can make correct decisions of
investment, Dis-investment or sale and purchase.
1.5. DEVICES OPERATED IN E-BANKING:-
E-Banking service offers a broad range of devices at the throwing away of its
customers, using which they can carry out their banking transactions in a contented
manner and without consuming too much time. These devices may or may not be
available at the bank itself, but are certainly accessible in a considerable proportion
throughout the town or cities. E-Banking sector makes use of the latest technological
devices for making banking a satisfying experience for its customers. Following are
the various E-Banking devices. The devices are made using the latest and updated
soft-wares made in India, Japan, Germany, Italy, Korea, etc. These devices are
designed allowing for the basic awareness and customer’s current ability to handle
such electronic devices and internet facility. Most of the devices are manufactured in
such a way that the devices can be easily carried from one place to another place also.
An average literate person with proper minimum preparation also can operate such
devices.
1. ATM (Automated Teller Machine):- ATM machines are computer-controlled

terminals located on location of banks or elsewhere through which customers may
make deposits, withdrawals or other transactions as if they are operating as a bank
teller.
2. PDAS (Personal Digital Assistance):- It is small hand held device commonly

known as a mobile computer or a personal coordinator. It is a pocket size special
intention personal computer that lacks predictable key board due to small physical
size of this device. It often possesses the latest and most compact user interface
such as touch screens hand writing identification or miniature key boards PDAS
combine computing telephone fax and networking features some of these devices
have internet capabilities either through a build in or add on modem.
3. Kiosks:- It is a small physical formation (often including a computer and a
display screen) that display information for people while walking on the road at
spare time and desire to know their bank account location.
4. Mobile Phone:- Even mobile phones can also be used in E-Banking in mobile
banking. Banks are offering two types of services, SMS facility and WAP facility.
5. Computers and Laptop:- Personal computer is the most important device of E-
Banking as internet banking which is the heart of E-Banking; It is possible only
with internet hire personal computers. One can control E-Banking either by at
sitting at home or in the office, wherever they are having personal computers.
1.6. CURRENT SCENARIO OF E-BANKING IN INDIA:-
Internet banking has become an internal part of banking system in India. The
concept of E-Banking is of fairly recent origin in India. Till the early 90’s
traditional model of banking i.e. branch based banking was prevalent, but after
that non branch banking services were started. The Indian government enacted
the IT act 2000, with effect from the 17th Oct. 2000. To examine different aspects
of internet banking RBI set up a committee on Internet Banking. The committee
had focused on three major area of Internet Banking. Technology and securing
issues, legal issues and regulatory and supervisory issues. RBI had accepted the
suggestions and recommendations of the working committee and accordingly
issued guidelines to banks to implement Internet Banking in India. The old
manual systems which were prevalent in India banking for centuries seem to
replaced by modern technology.
1.7. AN INTRODUCTION TO E-BANKING FRAUDS AND SAFETY:-
1.7.1. DEFINITIONS OF “FRAUD”:-
1. The “Fraud is defined as any behaviour by which one person intends to gain a
dishonest advantage over another person”.
2. “Fraud is an Act or Omission which is intended to cause wrongful gain to one

person and wrongful loss to the other, either by way of conceal meant of facts
otherwise”.
1.7.2. E-BANKING FRAUDS:-
Internet Banking Fraud is a “Fraud of robbery devoted using online technology

to illegally removing money from a bank account of a customer”. The term
“Internet Fraud” generally refers to any type of Fraud scheme that uses one or
more online services to current Fraudulent solicitations to prospective victims, to
conduct fraudulent transactions, or to broadcast the proceeds of fraud to financial
institutions or to others connected with the plan. Internet fraud can take place on
computer programs such as chat rooms, e-mail, message boards, or web sites.
Now internet banking is broadly used to check account details, make purchases,
pay bills, transfer funds, print statements etc. Generally, the user identity is the
customer identity number and password is provided to secure transactions. But
due to some unawareness or silly mistakes one can easily fall into the trap of
cyber criminals. Cyber crimes are touching all the facet of our life and our
banking transactions are also affected by them. Whether it is credit card frauds,
ATM frauds or Internet banking frauds, cases are occasionally reported in India.
The occurrence and numbers of these cases are growing day by day and there is
a strong need of stringent cyber law in India.
According to SBI Director Smt. Arundhati Bhattacharya, “The banking sector has
lost an unbelievable amount of Rs.97,762/- crores plus due to frauds during the
period between 2012 to 2017” Details are as under:-
It indicates that the above table no. 1.3 that there have been considerably huge
losses of money due to E-Banking frauds in the five year period between years
2012 to 2017. The financial year of 2012-2013 the loss of Rs. 8,646/- crores, then
2013- 2014 the financial year increasing fraud Rs. 11,022/- crores, next financial
year 2014- 2015 was very increasable amount of fraud Rs. 13,083/- crores,
financial year 2015- 2016 was amount of fraud Rs. 16,468/- crores, 2016-2017
financial year was increasing amount of fraud Rs. 22,743/- crores and lastly end
of the December month was amount of fraud is Rs. 25,800/- crores.
1.7.3. DIFFERENT TYPES OF FRAUDS:-
1. Internet Marketing and Retail Fraud:-
This is a fast-growing area of internet fraud perpetrate by fraudulent internet

marketing and retail sites. A variety of products and services are concerned in it.
The customer is tricked by a legitimate looking site and effectual marketing into
giving their credit card information and CVV number, or sending cash by other
means, in exchange for what they believe to be the goods or services. The goods
never turn up, turn out to be Fake or are products worth less than those advertised.
Where a credit card is involved, the perpetrators may also aim to use the
customer’s credit card information to obtain cash or to make purchases of their
own. A common example of this type of fraud is pornographic websites that
advertise free access. Upon further examination, however, a credit card is
required “For age authentication purposes only”. The scammers then use your
credit card information to make large charges to the credit card.
In cases involving fake or worthless goods, many are health products,

related to health fraud. These products might promote anything from a quick way
to lose weight to a cure for a serious sickness and may promise a lot, claiming
they can “Do it all” claim to be a “Scientific breakthrough”, with no way to check
if they are true or fake. Once your credit card information is given to these types
of scam companies, they frequently will charge you no matter what type of
termination you attempt to go through.
2. Online automotive fraud:-
There are two basic schemes in online automotive fraud: A fraudster posts a vehicle
for sale on an online site, generally for luxury or sports cars advertised for thousands
less than market value. The details of the vehicle, including photos and explanation,
are typically lifted from sites such as E-Bay motors or Auto scout 24 and re-posted
elsewhere. An interested buyer, hopeful for a good deal, emails the seller, who
responds saying the car is still available but is located overseas. He then instructs the
buyers to send a deposit via wire transfer to commence the “Shipping” process. The
unaware buyer wires the funds and does not discover until days or weeks later that
they were scammed.
In another type of fraud, a fraudster contacts the seller of an automobile,

asking for the vehicle identification number (VIN), putatively to check the accident
record of the vehicle.
3. ATM Frauds:-
These frauds are usually carried out by using following Modusoperand,
A. Negligence by ATM Card owner–by using/exposing his OTP, PIN, and Number
publicly, noting it on commonly exposable paper, on the backside of ATM Card,
Saving it in the Mobile Phone directory etc.
B. By not disposing off, tearing off the printed paper received after completing the
financial transaction and making it available for the fraudulent persons to collect it
from the dust bin etc.
C. Sometime it is also observed that the persons/bank staff/shopkeeper etc. takes out
extra print out of financial transactions carried out using ATM, Debit or Credit card
and in CCTV footage records the PIN, number used by the Card holder.
D. It is also proved that the fraudulent persons are inserting one specially
manufactured electronic Chip, which can work as a SENSOR and record the details
of the card inserted in the socket. Such chip is so nicely and smartly placed in that
socket, that by naked eyes it cannot be noticed.
E. Sometime card holders allow the delivery boys in shops, petrol pumps etc. to carry
their credit, debit card to office at a longer distance where card accessing machine is
installed for collecting the money by using the card, if the customer doesn’t go with
that staff to that place, the staff can note down the details of the card and can take
misuse of it in future.
4. Phishing:-
This is a smart method operated to cheat innocent and potential persons. The steps
involved in this type of fraud are usually as follows:
A. From internet sources, e-mail, user ID of the customer is collected.
B. From a fake website, fake e-mail account, a mail is delivered to the targeted
customer informing that this–mail is from a very big, World class Organization,
Company, Bank etc. and he/she has been chosen a lucky customer, or your CV is
found from XYZ sources and you are a very potential and useful client we are looking
for.
C. Customer is informed that his/her CV has been shortlisted for a very lucrative job
or for prize money of very huge amount and is also asked to provide his/her bank
details etc.
D. Then customer is provided with an offer letter of the job offered/promised or fake
pay order copy of the offering the promised amount, and is also instructed to deposit
XYZ Amount in their Bank Account in order to carry out foreign Transactions as per
the international law, then only the promised prize amount can be transferred to lucky
customer’s bank account.
5. Harming:-
This is carried out by using a prospective source called DNS, a type of machine
responsible for resolving internet names into their real addresses-the “Signposts” of
the internet. If the web site receiving the traffic is a fake web site, such as a copy of
a bank’s website, it can be used to “Phish” or steal a computer user’s passwords, PIN
or account number. Note that this is only possible when the original site was not
protected or when the user is ignore warnings about invalid server certificates.
6. Skimming:-
Skim the information off the cards is another method of accessing customer’s private
information. It is a most commonly used method to obtain illegally any consumers
card information. Skimmers are electronic device that is used by the criminals to
capture the data stored on the magnetic strip of the ATM card.
The vital information of customer’s Credit or Debit card is collected by

the fraudsters by using magnetic strip behind the card exposing to already fitted
skimmer device in the ATM or through a small pinhole camera mounted in or on
ATM.
7. Carding:-
Carding is a kind of electronic theft carried out by fraudsters by collecting the details
of the records of purchases made by the card holder customer. Fraudsters find out the
website from the product label and try the same card for the same website for some
reasonable small purchase amount so that doubt cannot be raised or transaction
cannot be rejected due to unavailability of the amount in card holder’s account.
Many times the customers receive e-mail or message informing that, if

XYZ is your credit/debit card number, then you are a lucky customer and you have
won prize money of ABC/- Rs. Amount. In order to deposit this prize money in your
account in the Bank, please provide us your Bank details, the unaware customers get
caught into this carding trap and lose their hard earned money.
8. Card Not Present:-
This kind of fraud is potential only when the business deal take place online. Under
this method, the merchant sells the product on the basis of card information given by
the purchaser indirectly through the mail, over the telephone. The merchant cannot
confirm whether the original card holder is authorizing the purchase. But, the
merchant can minimize the chances of fraud by shipping the ordered products only
to the place informed by the original card holder.
9. Colluding merchants:-
There are chances of merchant joining hands with the fraudsters who pass on credit
card information of the card holder and give payment instructions to the card issuer
without the consent of the original card holder.
10. Cyber squatting:-
Cyber squatting is the act of register a famous domain name and then selling it for a
fortune. Cyber Squatters register domain names identical to popular service
provider’s domains so as to attract their users and benefit from it. This is an issue that
has not been covered in the IT Act, 2000.
11. SMS spoofing:-

It is a relatively new technology which uses the short message service (SMS),
available on most mobile phones and personal digital assistant, to set to who will
receive the message appears to come from by replacing the originating mobile
number (Sender ID) with alphanumeric text. Spoofing has both legitimate uses
(setting the company name from which the message is being sent, setting your own
mobile number or a product name) and illegitimate uses (such as impersonating
another person, company, or product).
12. Money laundering risks:-
Since internet banking can be done remotely, banks may find it complicated to apply
traditional methods for preventing and detecting undesirable criminal activities like
money laundering. Application of money launder rules may not be sufficient for some
forms of E-Payments.
13. International Boundary risk:-
Internet banking is totally based on information technology so it can be operate from

any place in any country. Since it is complicated to check the application for a loan
from a customer out of the country as compare to familiar customer base. Acceptance
of foreign currencies in payment of electronic money may be subject to market risk
due to ups and down in forex charge.
14. Cyber fraud:-
Banks are asking their consumers to adopt newer service delivery electronic platform
like mobile, internet; ATMs’ for delivering service professionally and further it helps
in cost cutting. While the customers are becoming more techsavvy and had started
using electronic channels, the fraudsters are using newer ways of doing frauds by
exploit the loophole in information technology systems and processes. There have
been many frauds of low value where the fraudster has used software programs,
malware attacks, phishing, emailing and through SMS etc.
15. Holes:-
Hole is any defect in hardware, software or privacy policy that allows hackers to have
unauthorized access to personal computers/laptops/smart phones. The network tools
that can be affected by holes are routers, server software, operating system, firewalls
and client.
16. Spamming:-
Spam refers to unsolicited bluk messages being sent through E-Mail, instant
messaging or other idgital communication tools. It is generally used by advertisers
because there are no operating costs beyond that of managing their mailing lists. It
counld also take place in chat rooms in blogs and more recently within voice over
internet conversation. Beyond being a simple nuisance. Spam can also be used to
collect sensitive information from users and has also been used to spread viruses and
other malware
1.7.4. INTERNET BANKING AND RELATED FRAUDS:-
• Triangulation/site cloning:- Customers get tempt to fraudulent fake websites

showing beautiful products and because of their lack of knowledge, provide their card
details manufacture purchases and then their money is withdrawn by the fraudsters
without supplying the products ordered.
• Hacking:- Hackers/fraudsters obtain unauthorized access to the card management

platform of banking system. Counter felt cards are then issued for the purpose of
money laundering.
• Online fraud:- Card information is stolen at the time of an online transaction.

Fraudsters then use the card information to make online purchases or assume an
individual’s identity.
• Use of Social Media:- A thief can convince an employee that he is hypothetical to

be let into the office building, or he can convince someone over the phone or via
Email that he’s supposed to receive confident information.
• False pretences:- Someone with the intent to steal commercial information can get
a job with a cleaning company or other vendor exclusively to gain legitimate access
to the office building.
• Computer viruses:- With every click on the internet, a company’s systems are open
to the risk of being infected with nefarious software that is set up to harvest
information from the company servers.
1.7.5. E-BANKING SAFETY:-
Information and the knowledge based on it has progressively more becoming

recognized as ‘Information Assets’, which are vital and it enablers business
operations. Hence, they necessitate organizations to provide satisfactory levels of
protection. For banks, as purveyors of money in physical form or in bits and bytes,
reliable information is even more critical and hence information security is a vital
area of concern. Robust information is at the heart of risk management processes in
a bank. Inadequate data quality is likely to bring on errors in decision making. Data
quality requires building processes, procedures and disciplines for managing
information and ensuring its integrity, accuracy, completeness and timeliness. The
fundamental attributes sustaining data quality should include accuracy, integrity,
consistency, completeness, validity, timeliness, accessibility, and usability and audit
ability. The data excellence provided by various applications depends on the quality
and reliability of the data upon which that information is generated. Entities that treat
information as a critical organizational asset are in a better position to manage it
proactively.
Information security not only deals with information in various channels
like spoken, written, printed, electronic or any other medium but also information
handling in terms of creation, viewing, transportation, storage or destruction. This is
in contrast to IT security which is mainly concerned with security of information
within the boundaries of the network infrastructure technology domain. From an
information security perspective, the nature and type of compromise is not as material
as the fact that security has been broken.
To achieve effective information safety measures governance, bank

management must found and maintain a framework to guide the development and
maintenance of comprehensive information security programmers.
The advent of new inventions in Information and Technology has made

some very wonderful soft-wares which on entry of corrupt, data, files, informs the
system handling employees about the entry of such corrupt information in different
color or in some different message informing it as entry of troubleshooting foreign
body in the system.
1.7.6. BASIC PRINCIPLES OF INFORMATION SECURITY:-
For over twenty years, information protection has held Confidentiality, Integrity and
Availability (known as the CIA triad) to be the core principles. There is continuous
debate about extend this classic trio. Other principles such as Authenticity, Non-
repudiation and Accountability are also now appropriate key considerations for
practical security installations.
1. Confidentiality:- Confidentiality is the phrase used to prevent the revelation of

information to unauthorized individuals or systems. For example, a credit card
transaction on the Internet requires the credit card number to be transmitted from the
buyer to the merchant and from the commercial to a transaction processing network.
The system attempts to enforce confidentiality by encrypting the card number during
transmission, by limiting the places where it might appear (in databases, log files,
backups, printed receipts, and so on), and by restricting access to the places where it
is stored. If an unauthorized party obtains the card number in any way, a breach of
confidentiality has occurred. Breaches of confidentiality take many forms like
Hacking, Phishing, Email-spoofing, and SMS spoofing, and sending spiteful code
through email or Boot Networks, as discussed earlier.
2. Integrity:- In information security, integrity means that data cannot be customized

without authorization. This is not the same thing as referential honesty in databases.
Integrity is violated when an employee by mistake or with malicious intent deletes
important data files, when he/she is able to modify his own salary in a payroll
database, when an employee uses programmer and deducts small amounts of money
from all customer accounts and adds it to his/her own account (also called salami
technique), when an unauthorized user vandalizes a web site, and so on. On a larger
scale, if an automated process is not write and tested correctly, bulk updates to a
database could alter data in an inaccurate way, leaving the truthfulness of the data
compromised. Information security professionals are tasked with finding ways to
implement controls that prevent errors of integrity.
3. Availability:- For any information system to serve its intention, the information
must be available when it is needed. This means that the computing systems used to
store and process the information, the security controls used to guard it, and the
communication channels used to access it must be implementation correctly. High
availability systems aim to remain available at all times, preventing service
disruptions due to power out ages, hardware failures, and system upgrades. Ensuring
availability also involves preventing Denial-of-Service (DOS) and Distributed
Denialof Service (D-DOS) attacks.
4. Authenticity:- In computing, E-Business and information security it is compulsory

to ensure that the data, transactions, communications or documents (electronic or
physical) are authentic. It is also important for authenticity to validate that both
parties concerned are who they claim they are.
5. Non-repudiation:- In law, non-repudiation implies one's purpose to fulfill one’s

obligations under a contract / transaction. It also implies that a party to a transaction
cannot deny having received or having sent an electronic record. Electronic
commerce uses technology such as digital signatures and encryption to establish
authenticity and non-repudiation. In calculation to the above, there are other security-
related concepts and principles when scheming a security policy and deploying a
security solution. They include identification, authorization, accountability, and
auditing.
6. Identification:- Identification is the procedure by which a subject professes an

identity and accountability is initiated. A subject must provide an identity to a system
to start the process of authentication, authorization and accountability. Providing an
identity can be typing in a username, swiping a smart card, waving a proximity
device, speaking a phrase, or positioning face, hand, or finger for a camera or
scanning device. Proving a process ID number also represents the identification
process. Without an identity, a system has no way to show a relationship an
authentication factor with the subject.
7. Authorization:- Once a subject is authenticated, access must be authorized. The

process of authorization ensures that the requested activity or right to use to an object
is possible given the rights and privileges assigned to the authenticated identity. In
most cases, the system evaluates an access control matrix that compares the subject,
the object, and the intended activity. If the specific action is allowed, the subject is
authorized. Else, the subject is not authorized.
8. Accountability and audit ability:- An organization’s safety measures policy can

be properly enforce only if accountability is maintained, i.e., security can be
maintained only if subjects are held accountable for their measures. Effective
accountability relies upon the capability to prove a subject’s identity and track their
activities. Accountability is established by linking a human to the actions of an online
identity through the security services and mechanisms of auditing, authorization,
authentication and identification. Thus, human accountability is ultimately dependent
on the strength of the authentication process. Without a convincingly strong
authentication process, there is doubt that the correct human associated with a
specific user account was the actual entity controlling that user account when an
undesired action took place.
9. Information Security Governance:- Information security governance consists of

the leadership, organizational structures and processes that protect information and
improvement of growing information security threats like the ones detailed above.
Critical outcomes of information security governance include: Alignment of
information security with business strategy to support organization.
1.7.7. SECURITY POLICY:-
The information about security policy is the systemization of approaches and policies
associated to the formulation of information security measures to be employed within
the organization to assure security of information and information systems owned by
it. The security policy should address the following key points:
1. Basic approach to information security measures.
2. The information and information systems that must be protected, and the reasons
for such protection.
3. Priorities of information and information systems that must be protected.
4. Involvement and responsibility of management and establishment of information

security coordination division.
5. Checks by legal department and compliance with laws / regulations.
6. The use of outside consultants.
7. Identification of information security risks and their management.
8. Impact of security policies on quality of service to the customers (for example,

disabling an account after three unsuccessful logins may result in denial of service
when it is done by somebody else mischievously or when restoration takes unduly
long time).
9. Decision making process of carrying out information security measures.
10. Procedures for revising information security measures.
11. Responsibilities of each officer and employee and the rules (disciplinary action
etc.) to be applied in each case.
12. Auditing of the compliance to the security policy.

13. User awareness and training regarding information security.
14. Business continuity Plans.
15. Procedures for periodic review of the policy and security measures.
16. FAQs [Frequently Asked Questions]
The top management of the bank must communicate a commitment of

security by approving and supporting formal security awareness and guidance. This
may require special management level training. Security awareness will train people
not to disclose sensitive information such as password file names. Security
guidelines, policies and procedures affect the entire organization and as such, should
have the support and suggestions of end users, executive management, security
administration, IS personnel and legal counsel
1.7.8. SIMPLE SAFETY TIPS FOR USING ATM CARDS:-
1. Do not disclose ATM PIN to anyone.
2. Select PIN that cannot be guessed.
3. Memorize your PIN do not write it anywhere.
4. Change PIN regularly.
5. Always ensure to keep your card secure during and after use.
6. Never seek help from strangers or handover your ATM card.
7. Do not leave the ATM slip and preserve it till you update your pass.
8. Avoid going to isolated ATM with valuables.
9. Ensure to block/hot list the ATM card immediately in case you lost the card.
10. Destroy old card if replaced by a new ATM card.
11. Safe guard ATM keypad with hand or body while entering PIN.
1.7.9. RECOMMENDATIONS:-
➢ Security Organization:- Organizations should make open security plan and

document it. There should be a separate Security Officer / Group dealing
exclusively with information systems security. The Information Technology
Division will actually implement the computer systems while the Computer
Security Officer will deal with its security. The Information Systems Auditor
will audit the information systems.
➢ Access Control:- Logical access controls should be implemented on data,
systems, application software, utilities, Tele-communication lines, libraries,
system software, etc. Logical access control techniques may include user-Ids,
passwords, smart cards or other biometric technologies.
➢ Firewalls:- At least, banks should use the proxy server type of firewall so that
there will be no direct connection between the Internet and the bank’s system.
It facilitates a high level of control and in-depth monitoring using logging and
auditing tools. For sensitive systems, a state full inspection firewall is
recommended which thoroughly inspects all packets of information, and past
and present transactions are compared. These generally include a real-time
security alert.
➢ Isolation of Dial up Services:- All the systems supporting dial up services
through modem on the same LAN (Local Area Network) as the application
server should be inaccessible to prevent intrusions into the network as this
may bypass the proxy server.
1. Security Infrastructure:- At present, PKI [Public Key Infrastructure] is the

most favored technology for protected Internet banking services. While PKI
infrastructure is strongly recommended, during the transition period, until
IDRBT [Institute for Development and Research in Banking] or Government
puts in the PKI infrastructure, the following options are recommended:
1. Usage of SSL, which ensures server authentication and the use of client
side certificates issued by the banks themselves using a Certificate Server.
2. The use of at least 128-bit SSL for securing browser to web server
communications and, in addition, encryption of sensitive data like passwords
in transit within the enterprise itself.
➢ Isolation of Application Servers:- Commonly and frequently used servers

such as ftp, telnet, etc. should be disabled considering the possibility of
inexperienced person may use them while saving confidential
information/data. If such servers are not kept in isolation or disabled the
secured information may be exposed to public access.
➢ Security Log (Audit Trail):- All computer accesses, including messages
received, should be logged. All computer access and security violations
(suspected or attempted) should be reported, and needful action should be
taken as the organization’s escalation policy.
➢ Penetration Testing:- The Staff responsible for such testing should ensure
1. Attempts made for guess passwords using password-cracking tools.
2. Search for back door and unauthorized traps in the programs.
3. Attempts made to overload the system using DDS (Distributed Denial of
Service) & DoS (Denial of Service) attacks.
4. Check for commonly known holes in the software, especially the browser
and the email software existence.
5. The penetration testing by adapting outsourcing agencies. (Often called
‘Ethical Hackers).
➢ Physical Access Controls:- Physical access control is must to take care of
external and internal threats, causing slow down, or non-functioning of the
system.
➢ Back up & Recovery:- There should be a perfect time table and its
implementation strictly for taking the backup of the data and transactions
carried out. Backup of data should be usually carried out at end of the day or
on week end days. There should be a perfect disaster management, recovery
management system to correct unfortunate and unexpected disasters that may
take place.
➢ Monitoring against threats:- Most advance soft ware’s and antivirus should
be used and updated on regular basis to keep continuous monitoring of
various threats.
➢ Training& Review:- As we all know that in the world of information and
technology there is always updating and up gradation. The bank must provide
a needful training to their staff to take the best use of these updates and up
gradation to improve the efficiency of the organization.
➢ Log of Messages:- The bank has to communicate regularly to its internal
staffs and external customers and organizations, etc. during this process of
communication bank forwards important data to them. It is a fact observed
that neither internal staff nor the external customers, agencies are bothered
for saving the important information. They take it granted that the bank is
most reliable source and must have saved all the data communicated to them.
There is always a possibility that without prior notice any customers may ask
for any important data, so in order to fulfill his or her request the bank should
save encrypted and decrypted data.
➢ Certified Products:- There are many IT companies which provides many Hi-
Tech IT products approved at international standards. Banks must check and
use such approved products to insure proper security and smooth functioning
of E-Banking.
➢ Maintenance of Infrastructure:- Banks must use most updated and latest
versions of protective software tools, data recovery tools and eradications
tools for eradication of threats causing factors such as malware, viruses,
pinholes, bugs etc.
➢ Approval for I-banking:- All different banks are reporting to RBI. The apex
bank of India controlling banking regulation all over the country. It is the
prime function of RBI provide latest needful regulations, system, concept,
tools, format to all its banks and upgrade them for obtaining permission to
operate any new concept, systems, applications and soft ware’s involving E-
Banking system all the banks have to fulfill the conditions, eligibility criteria
guided by RBI then only this banks can get approval for Internet Banking.
➢ Standing Committee:- RBI is authorized to control the functioning and
provide necessary guidelines to its dependent banks in order to insure smooth
functioning of E-Banking. For this purpose RBI has setup committee of
expert persons and distributed the relevant responsibility to them.
1.7.10. CUSTOMER PROTECTION ISSUES:-
1. In India, the Information Technology Act, 2000, has provided saving an

electronic data such as Adhar Number, PAN Number, digital signature, scanned
signature of the customer to be considered as an authentic document in case of
any emergency such as customers forgets her/his signature lost pass book, Adhar
card, pan card, etc. this type of protection is granted to customer by this act.
2. Bank must insure and install a perfect mechanism, system to offer protection
to its customers. There are various risk associated with customers operating E-
Banking on their own such as expose of OTP, PIN, ATM card number, Debit and
Credit card number and Hacking of accounts, etc. it is the prime duty of banks to
maintain total secrecy and confidentiality about its customers’ details available
with the bank.
3. In case of E-Banking there is no provision for customers to give the instructions

such as, “Stop Payment” as it is available in case of manual banking process.
Banks must apply some efficient mechanism to offer this facility to its customers
to till they can make final decisions of paying or stopping the payment online.
4. There is always an unwritten agreement/understanding between banks and its

customers for using the E-Banking system and resolving any issues, disputes etc.
that may arise due to E-Banking threats such as hacking of account, disposal of
confidential information, fraudulent massages etc. causing lost to the customers
as well as banks. It is understood and mutually accepted according to customer
protection act 1986, that such issues should be resolved amicably with mutual
cooperation none of the party should be held responsible for any such fraudulent
activity.
5. There are always some risks associated while customer and bank operates
transactions through E-Banking. In order to maintain healthy relation and total
transparency in transaction it is compulsory for banks to inform customers in
advance before the beginning of the transactions about the rules, regulation, risk
and disputes are may arise and the methodology that will adapt to overcome such
issues.
6. Those customers who are not techno-savvy and fail to solve their problem
regarding E-Banking by using their electronic devices such as mobile phones,
such customers may approach directly to the bank. Bank must arrange mechanism
and staff to help such customers.
7. There can be ‘n’ number of different complains and grievances of customer. It

is a well-accepted fact and ethics according to customer protection act, that banks
must help such customer and address there complains and grievances
expeditiously. The bank should give priority to offer solution and compensation
to the customer at the earliest by following minimum required procedures.
8. Banks must have professional Ombudsman for resolving E-Banking issues of

the customers.
9. The jurisdiction of legal settlement would be within India.
1.7.11. ISSUES IN ADMINISTRATION OF SYSTEMS AND

APPLICATIONS:-
While operating E-Banking the banks may have to face various administrative
works and for that banks must maintain confidentiality and their administrative
tools up dated. Some of the preventive measures, measure problems that may
arise are discussed below:
a. Installation of software:- It is known fact that even the notorious hackers and
fraudulent persons are also techno-savvy now a days. Considering this bank must
install only approved ethical versions of soft-wares from branded companies and
should not install pirated versions of soft-wares. Banks must take appropriate
action to correct the damages and update the system as per the instructions given
by softwares.
b. Access controls and user maintenance:- Banks have number of staff handling
number of different systems according to the job assigned to them. There are
chances that there could be leakage or deletion of important secret data. In order
to offer control over everybody’s individual work carried out by using computers
in the bank and maintaining the secrecy each individual staff should be provided
specific password. The important data should be encrypted. If possible, all log
files should be made ‘append only’. All the systems in the bank should be kept
under control of one efficient administrator only.
c. Backup, recovery & business continuity:- Considering some unfortunates

events such as file got corrupted deletion of important data, purposeful
manipulation in the data done by mischievous persons hacking of data banks must
take data Back-up on daily basis. During the transactions banks has to handle
various websites which are generally classified as hot, warm, and cold. Data
download from such websites should be encrypted in separate folder with specific
password.
d. System & network logging:- Whenever system is operated a person has to login
and logout while closing the system. The details such as user ID of the person,
password of the person, login time, websites handled, data downloaded, data
deleted, data transfer, data copied, apps used etc. the entire activity carried out by
the person should be logged and saved. This helps system administrator to carry
out necessary corrections in case there is any damage caused to the systems and
maintain confidentiality and to protect the system.
Securing your account:- follow following stapes:-
1. Avoid online banking on unsecured Wi-Fi systems.
2. Operate only from PCs at home.
3. Never reveal password to anyone.
4. Do not even write it on a piece of paper on diary Just memories.
5. It should be alphanumeric and change it frequently.
6. Never reply to queries from bank online about account or personal details.
7. The personal information should not be kept in a public computer or in emails.
1.7.12. SECURITY MEASURES:-
Problems caused in E-Banking are mostly due to tethering in order to ensure

safety to avoid such problems following listed actions are advisable to be
followed by banks and customers.
1. Authenticity controls:- To verify personality of human being like password,

pin code etc.
2. Accuracy controls:- To guarantee the appropriateness of the data following

across the network.
3. Completeness controls:- To make confident that no data is misplaced.
4. Redundancy controls:- To see that data is travel and process only once and
there is no relevant sending of data.
5. Privacy controls:- To protect the data from not deliberate or unconstitutional

access.
6. Audit trail control:- To ensure maintenance sequential role of procedures that

are occurred in the system.
7. Existence controls:- To make sure that going on ease of use of all system
resources with the same all the way through.
8. Efficient controls:- To ensure that the system user minimum recourses to

accomplish the preferred goal.
9. Fire wall controls:- To prevent un authorized users accessing the private

network which are attached to internet.
10. Encryption controls:- To enable only those who acquire secret key to decrypt
the cyber text.
With the globalization of business and services, our country cannot organize
behind in function areas of electronic banking. In the new global period of
multicurrency, multi-legal and multiple regulatory systems, with the lack of
restrictions of E-commerce, banks have to operate like multinational corporations
to grow up and continue to exist by adopting E-Banking.
Banks as well as know are for the safety and security of our economic asset a web
customer can shop on any website but payment will be through E-Banking. The
scuffle field of business has charged and E-commerce is the potential war front
industry of the millennium whatever is predicted on the E-commerce boom that
is likely to tap up revenues. Many banks outside the country are in the front curve
in developing a customer friendly on line being there.
Online banking and Internet banking services have recognized themselves in the
US and other countries in recent years, in India also; a few banks have been
contribution net banking conveniences. Many other banks are working out
strategies related to E-Banking services.
1.8. RBI’S INITIATIVE FOR DIVERSIFIED USE OF E-BANKING

FACILITIES:-
RBI report- 2016-17, 2,22,475 ATM and 25,29,141 point of sale devices (POS),
National Electronic Fund Transfer (NEFT), Electronic Clearing Service (ECS),
Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS),
National Payments Co-Operation of India (NPCI), Prepaid Payment Instruments
(PPI).
1.9. TECHNOLOGICAL DEVELOPMENT IN INDIA CONCERNED

WITH E-BANKING:-
1. 1980s MICR standard cheques Encoders – Mechanization.

2. 1988s RBI set up a committee on computerization in banks headed by Dr. C.
Rangarajan.
3. 1990s ATMs Electronic fund transfer, branch connectivity computerization –

Automation.
4. 2001-10s IMPS, RTGS, NEFT, NECS, Online banking and Telephone banking
and Internet banking.
5. 2011- till dates Biometrics, Mobile banking, cheque transaction in mobile

banking.
6. Different core banking platforms such as finical designed by Infosys, Banks by

TCS, Flex cube by i-fles, gained popularity.
1.10. CHAPTER SCHEME:-
The research work is divided in Five Chapters.
1. Chapter First:- Introduction It describes introduction, definitions of E-Banking,

benefits of E-Banking, Functions E-Banking, devices offered in E-Banking,
Current scenario of E-Banking in India, Various E-Banking delivery channels, an
introduction of E-Banking Frauds and Safety. (Definition of fraud, Deferent types
of frauds, Internet banking and related frauds, E-Banking safety, basic principles
of information security, Security policy, Simple safety tips for using ATM card,
Recommendation, Customer protection issues, and Issues in administration of
system and applications, Security measures), RBI imitative for diversified use of
E-Banking, Technological development in India concerned with E-Banking.
2. Chapter Second:- Review of Literature It is describes reviews the various

previous studies that have taken place on related topics and establishes the need
for this study with respect to those previous studies. Review of Literature
Introduction, Review of Literature studies all reference, Research gap and list is
Reference.
3. Chapter Third:- Research Methodology It reviews the Research Methodology

introduction, objectives of the study, hypothesis of the study, scope of the study,
source of data, sample design, period of study, tools and techniques of analysis,
list of public sector banks in Nanded District. Profile of selected banks, sample
frame in the selected banks total number of respondents in the study area.
4. Chapter Four:- Analysis and Interpretation Data Analysis and Interpretation

data: In this chapter researcher has focused on analyzed and collected primary
data from the E-Banking customers in selected area. Source of data collection
attempt was made to assess the usage of E-Banking service as ATM banking and
Internet banking as well as which services are easy and economical. The procured
data is then further explained in graphical form. Also I have tested hypothesis use
of Chi-Square test depended on study area or graphical presentation.
5. Chapter Five:- Finding, Conclusion, and Suggestions. Conclusion and
Suggestions: It consists of a conclusion regarding the same has been given along
with suggestions on the related topic. Suggestions and recommendations have
been made for the financial institutions, government and the E-Banking users,
and Scope for future research study.
CHAPETER 2 RESEARCH METHDOLOGY
2.1. INTRODUCTION:-
For every research topic to be effective and easily agreeable, it is necessary to

first establish the rationale behind the study or research work carried out. The
subject of study has to be dedicated towards the solutions of problems that have
been present in that particular field of study. A general statement of the purpose
has to be drawn as per the present scenario which would eventually lead to the
objectives of the study along with its scope and limitations. A similar attempt has
been made by the researcher in this study. (In this thesis wherever the word
“Traditional Customer” will appear, it means, these are those customers which
physically goes to Bank for completing their Banking transactions, and do not
follow E-Banking. “New Customers” means, those who rarely physically go to
Bank, but mostly prefer performing their Banking transactions by using E-
Banking facilities on Mobile phone, Laptop, Computer etc.)
2.2. STATEMENTS PROBLEMS :-
The topic of research, “A Study of Electronic Banking Frauds and Safety

Awareness of Customers in Nanded District” provides information about the
awareness of the E-Banking frauds amongst the bank customers using E-Banking
and gives out the following set of problems.
1. Un-awareness amongst common E-Banking customers regarding various E-

Banking frauds like phishing, skimming, spoofing, spamming, carding and
scanning etc.
2. Lack of knowledge amongst E-Banking customers about security measures.

The substantial improvement in technology has led to a phenomenal rise in the
services provided by banks to its customers and with further improvements the
number of customers accessing E-Banking services has increased as well.
The study of “Electronic Frauds and Safety measures” will be able to effectively
present the implications of E-Banking frauds in India. It will also give a
representation of the level of awareness amongst E-Banking customers regarding
various E-Banking frauds with the help of statistical data. The measures taken by
various banks to prevent E-Banking frauds can also be understood through this
study. This study would enable the E-Banking customers to carry out their online
transactions and usage of ATMs with safety and confidence.
2.3. OBJECTIVES OF THE STUDY:-
The objectives of the study are as under
1. To find out E-Banking frauds covered under this topic.
2. To find out awareness about E-Banking and safety measures among the
selected customers.
3. To understand preventive measures taken by RBI for preventing E-Banking

frauds.
4. To analyze the risk factors and safety factors in E-Banking services.
5. To find out and suggest the remedial measures to prevent E-Banking frauds.
6. To know the demography of various types of E-Banking customers.
2.4. HYPOTHESIS OF THE STUDY:-
Following are the Hypothesis of this study:-
1. There is no association between Occupation and awareness of E-Banking

customers.
2. There is no association between Age and awareness of E-Banking customers.
3. There is no association between Sex/Gender and awareness of E-Banking

customers.
4. There is strong association between Qualification and awareness of E-Banking

customers.
2.5. SCOPE & LIMITATION OF THE STUDY:-
The scope of the study is limited to Nanded District. This area has been selected
in order to know the awareness amongst the banking customers about E-Banking
frauds and Safety measures. Nationalized banks of Nanded District. Almost all
the major banks have branches in Nanded District. The respondents from the
following banks were asked to give their opinions regarding E-Banking with the
use of a structured closed ended questionnaire. Nationalized Banks chosen for the
research study are,
1. State Bank of India
2. State Bank of Hyderabad

3. Bank of Maharashtra/MGB
4. Bank of India
For this study, the researcher has tried to collect the data through primary and
secondary sources and has analysed as well has interpreted about Banking Frauds
and Safety. The study however, suffers from some limitations. These can be listed
as follows:-
- Since the geographical area chosen for this study is limited to Nanded District,
there could be limitations of broad coverage.
- The survey was based on random and convenient sampling.
- Few statistical tools were used to prove assumptions in order to reach scientific
conclusions.
- Since the study is microscopic in nature, the results obtained from it are also at
a smaller level.
2.6. SOURCES OF DATA:-
Data collection is an important step in the research process. In order to collect

data from the respondents, the researcher personally approached the respondents
with structured questionnaire. The instructions were also given in the
questionnaire. Respondents were asked to give their responses freely and were
permitted to ask their difficulties, if any. After the respondents had filled in their
responses, the questionnaires were taken back for further analytical conclusions.
In this study, both primary and secondary data has been utilized to arrive at certain
conclusions.
1. Primary Data:- It was collected through interviewing 400 ATM/Online facility

use of customers randomly from the aforementioned banks across Nanded
District. These customers included all types of bank account holders. The
interviews were taken with the help of a set of structured questionnaire which
comprised statistical and personal information about the respondent i.e. type of
account, period for which the respondent was holding the bank account number
of transactions as well as some banking safety awareness questions. A part from
the structured questionnaire as a form of data collection, the researcher also
conducted interviews of bank managers to get further information from them
regarding the subject of E-Banking frauds and the safety measures taken by the
banks.
2. Secondary Data :- Secondary data is collected from the following sources :- A.

Publications of selected Banks specially reports, Bulletins, Occasional
publications etc. B. Various Books, Research Journals, Magazines, Reports, web
sites and News, etc.
2.7. SAMPLE DESIGN:-
Sampling is defined as the selection of some part, out of the total on the basis of
which, some adjustments or inferences about the aggregate or the total can be
drawn. In this research study the Random and Convenience Sampling has been
taken into consideration. It is necessary to select few items from the universe for
the study purpose. A sample consists of number of individuals, objects, events
that represents the total population. A sample is a small portion of the population
selected for research.
By studying a sample, certain inferences about the population can be made. 400
sample respondents were selected for the present study. The study consists of the
banking customers, of different age group, different gender, different occupation,
and having ATM cards of different banks from Nanded District. All the
respondents are residents of Nanded District. For this study, the samples are any
consumers who are above the age of 20 years.
There are 16 Talukas in Nanded District, out of which the researcher has selected
only 30% Taluka randomly in which 5 Taluka namely Nanded, Ardhapur,
Hadgaon, Bhokar and Naigaon are selected. The researcher has selected 20
respondents from each of the above selected bank branches who have availed the
benefits of E-Banking facilities and the researcher has selected four bank
branches from each of the selected five Taluka i.e. 20 bank branches customer’s
information was collected randomly. Thus samples of (20 × 20 = 400)
respondents are selected.
2.8. PERIOD OF STUDY:- Year 2012 To 2022.

2.9. TOOLS AND TECHNIQUES OF ANALYSIS:-
The researcher has used various statistical tools, techniques and methods such as
collection, classification, tabulation, graphical presentation and percentages, etc.
The researcher has also applied, wherever necessary and possible, tests of
significance such as Chi-square Test for drawing inference and testing of
Hypothesis. The analysis of the data obtained has been carried out with the help
of different statistical tools such as statistical tables, percentiles of various
numerical values according to related data. Also, information regarding the
number of E-banking facility customers, their frequency of the stage of these
facilities, their satisfaction ratings, as well as their awareness about E-Banking
and various.
2.10. LIST OF PUBLIC SECTOR BANKS IN NANDED DISTRICT :-
1. Andhra Bank
2. Allahabad Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canada Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Overseas Bank
11. Oriental Bank of Commerce
12. Punjab National Bank
13. State Bank of Hyderabad
14. State Bank of India

15. State Bank of Patiala
16. Syndicate Bank
17. Union Bank of India
18. UCO Bank
19. Vijaya Bank
From the above listed Banks, following Four Banks have been chosen as sample
for the research study.
2.11. PROFILE OF SELECTED BANK :-
1. STATE BANK OF INDIA :-
• First bank of Cakcytta, currently named as the Bank of Bengal, was recognized
on 2 nd June 1806.
• In 1959, the Government accepted the State Bank of India Act.
• This was the Bank's 27,032nd ATM on 27 July 2012.
• On October 7th, 2013, Arundhati Bhattacharya became the first woman to be

appointed as Chairperson of the bank.
• As of 31 March 2014 SBI has 43,515 ATMs and SBI group (including associate
banks) has 51,491 ATMs.
• SBI has become the first bank to inaugurate an ATM in the Jammu & Kashmir
Kargil region.
2. STATE BANK OF HYDRABAD:-
• State Bank of Hyderabad was constituted as Hyderabad State Bank on

08.08.1941 under Hyderabad State Bank Act, 1941.
• State Bank of Hyderabad (SBH) is an associate bank of State Bank of India

(SBI), and is one of the scheduled banks in India.
• The Bank's Head Office is located at Gun foundry Area, in Hyderabad, India.
SBH has over 1,200 branches and about 12,800 employees.
• Assets are in excess of Rupees 767 billion.
• Now days the largest Associate (Merge Date 1 April 2017) Bank of State Bank
of India.
• SBH is also the supplier of the E-Banking features for its customers.
3. BANK OF MAHARASHTRA AND MAHARASHTRA GRAMIN

BANK:-
• The bank was found by a group of visionary led by the late V. G. Kale and the
late D. K. Sathe and register as a banking company on 16 September 1935 at
Pune.
• Now a days it has the largest network of 345 ATMs and 1,375 branches in state
of Maharashtra.
• Entered in to 75th year of dedicated service to the Nation adopted 75

underdevloped village for integrated overall development.
• Convert of the state level bankers committee and offers depository services and
Demat facilities at 131 branches.
• Bank has achived 100% computer based system enabling any time any where
banking to its customers.
• (MGB- 1979) Mahabank agricultural research and rural development

foundation registored as a public trust was established for undertaking research
and extension work and to provide more extensive services to farmers.
4. BANK OF INDIA:-
• It was found on 7th September 1906 by a group of famous businessmen from

Mumbai.
• Bank of India is a founder member of SWIFT (Society for World Wide Inter
Bank Financial Telecommunications)
• The banks have under private ownership and manage till July 1969 when it was
nationalized along with 13th other banks.
• The bank came out with its maiden public issue in 1997 and follows on qualified
institutions appointment in February 2008.
• All the branches of the Bank are completely networked under Core Banking
Solutions; offer a wide collection of products to its customers.
• All the customers of the Bank have entrance to the latest technologies like
Internet Banking, ATMs etc.
2.12. SAMPLE FRAME IN THE SELECTED BANKS TOTAL NUMBER

OF RESPONDENTS:-
As per Table sample frame in Nanded Taluka. It is first selected bank SBI total
no. of customers are 25,000, ATM customers are 24,500 and online customers
are 10,500. Second selected bank SBH total no. of customers are 23,000, ATM
customers are 22,500 and online customers are 5,700. Third selected bank BOI
total no. of customers are 7,000, ATM customers are 4,500 and online customers
are 2,800 and lastly Fourth selected bank BOM/MGB total no. of customers are
16,000, ATM customers are 9,000 and online customers are 1,500.
As per Table sample frame in Ardhapur Taluka. It is first selected bank SBI total
are 1,600 and lastly Fourth selected bank BOM/MGB total no. of customers are
17,612, ATM customers are 1,150 and online customers are 550.
As per Table sample frame in Bhokar Taluka. It is first selected bank SBI total
no. of customers are 12,000, ATM customers are 9,800 and online customers are
2,400. Second selected bank SBH total no. of customers are 8,000, ATM
total no. of customers are 2,500, ATM customers are 900 and online customers
are 150 and lastly Fourth selected bank BOM/MGB total no. of customers are
3,000, ATM customers are 1,250 and online customers are 500.
As per Table sample frame in Hadgaon Taluka. It is first selected bank SBI total
no. of customers are 5,000, ATM customers are 4,500 and online customers are
450. Second selected bank SBH total no. of customers are 12,000, ATM
8,000, ATM customers are 6,000 and online customers are 2,500.
As per Table sample frame in Naigaon Taluka. It is first selected bank SBI total
10,000, ATM customers are 2,000 and online customers are 120
CHAPTER 3 REVIEW OF LITERATURE
3.1 INTRODUCTION:-
Review of the related literature is one of the first steps in the research process. It
is relevant to refer briefly to the previous studies and research in the related areas
of the subject to find out and to fill up the research gaps, if any. Literature on
financial services can generally be found, a number of books are available on
banking related aspects as nationalization of banks, securitization, profitability
and productivity etc. But, few studies are undertaken on the role of technology in
the banking services.
The productivity of banks in terms of time saving and attending the customers at
the branches has also been improved. The review of following the studies throws
light upon different aspect of E-Banking. To know the impact of E-Banking on
various aspects, the research studies undertaken for the review has been classified
into four categories, i.e.,
1) Studies related Nationalize Banks,
2) Studies related to Customers,

3) Studies Regarding to electronics, and
4) Technology in Banking Sector.
It consists of summary of findings of research carried out in the past on same

related topics. This review provides insight to the researcher regarding what is
already known and what remains to be tested regarding the topic of research. It
guides the researcher to avoid duplication and provides useful suggestion for
further research on given topic.
The review is necessary for the following reasons:-
1. It helps in deciding of the methodology, tools and instruments in the study.
2. It gives recommendations for further research.
3. It helps to highlight the gap in existing knowledge
4. It helps in overcoming the problem regarding research studies and defining it

in appropriate manner.
Therefore, the aim of this chapter is to take review of the literature on “E-Banking
fraud awareness among the E-Banking Customers”. In this chapter, the studies
have been undertaken by various researchers in India in relation to E-Banking.
3.2 REVIEW OF LITERATURE:-
Now days, we can’t think about the success of a banking system without
information and communication technology (ICT). It has boosted the role of
banking sector in the economy. The financial transactions and payment can now
to be processed quickly and easily. The banks with the latest technology and
techniques are more successful in the competitive financial market. Banks have
been able to generate more and more business resulting in its greater profitability.
Various empirical and the orifical studies have been undertaken at the national
and international level to analyse the impact of E-Banking and Information and
Communication Technology (ICT) on banking sector, customers in banking, and
service quality in banking and payment system of banking. The studies mainly
focus upon E-Banking impact on productivity and profitability, primarily due to
core banking system, electronic fund transfer, real time gross settlement system
and electronic clearing services. From the customer angle the study primarily
focuses on, why customers choose E-Banking products and increase in their level
of satisfaction due to phone banking, mobile banking, internet banking, website
services, ATMs, etc. These services have not only improved the satisfaction level
of customers, but also helped in reduction of processing time and transaction
time. Some worthwhile studies relating to the present topic are being reviewed
here. Chronological approach is adopted for reviewing studies.
In the year 2001:- A survey by RBI revealed that of 46 major banks are operating
in India, around 50% were planning to offer E-Banking service in the near future.
According to one of the research reports, India’s internet user’s base was
estimated 9 lakes, which was expected to reach 90 lakes by 2003; only 1% of
these internet users utilized E-Banking services in the year 1998. E-Banking user
base increased to 16.7% by mid-2000. Hence, it was found that there was a
substantial increase in the usage of E-Banking services in a short span of 2 years.
Similarly when the use of telephones started from the year 1999, the banking
through telephone i.e. Tele-Banking also started increasing rapidly from that
year, there after mobile phones and other wireless devices were started from the
year 2003, where 1 billion mobile phone users were estimated in the year 2004,
From those 1 billion mobile phone users, over 600 million were expected to use
their mobile phones for banking. From this, we can find out the increase in the
dependency of banking customers on mobile banking as a convenient medium of
transactions.
According to IWS, internet subscribers in India stood at 42 million in 2007. This

again was a substantially high increase which paved way for increased use of E-
Banking services in India.
1. Simon and Victor-1994, examined the reasons why ATM card holders accept
or reject EFTPOS and how they viewed the risk of EFTPOS when compared to
credit and cash. The authors signified that more marketing research and consumer
participation was needed in designing and introducing E-Banking services so as
to gain more user acceptance. They signified that in order to reduce fear in the
minds of people regarding security, it was required to introduce risk reduction
techniques such as money back guarantee, live demonstration and free trial to
reduce psychological, financial and time loss risk. The researchers suggested that
to prove E-Payment methods more successful, it should be based on proper
marketing risk, prompt service support, sufficient legal protection and awareness.
2. Husain1988, it is highlighted in the importance of IT various sectors. In the

introduction of any new technology or system, many organizational, financial and
functional problems are faced by people in the initial stages. Such various issues
of that are involved in computerization have been vividly discussed.
3. Path rose 2001, it has analysed the challenges and effects of the new
technology for banks. As technology has brought a sea change in the functions of
banks, the earlier manual systems of preparation of vouchers, etc. are slowly
being automated there by saving a lot of time and efforts.
4. Mr. Sameer Ratolikar 2001, in case of the study of internet banking frauds
and defences, has described in short the different kinds of frauds in internet
banking and various remedial measures that can be taken to prevent them. In
2001, a report of the Expert Committee on Legal Aspects of Bank Frauds headed
by Dr. N. L. Mitra of Reserve Bank of India described various kinds of E-Banking
frauds and risks in India and the losses incurred by RBI due to it. They have
mentioned the steps taken by RBI to prevent as well as eradicate these frauds by
applying various remedial measures.
5. Janice Et.Al. 2002, he has examined in his study that, bases on interviews with
four banks in Hong Kong noted that banks view the Internet as being a
supplementary distribution channel for their products and services in addition to
other forms of distributions channels such as Automated Teller Machines
(ATMs), phones, mobile and bank branches. Basic transactions and securities
trading are the most popular types of operations that customers carry out in
Internet banking.
6. Aggarwal 2003, in his paper, he has looked for such avenues where E-Banking
could play significant role in E-Democracy. The author has discussed two case
studies on the implementation of E-Banking in digital democracy. One was
farmer services become more secure, efficient, transparent and fast. It becomes a
win-win situation for all, for banks its low cost, for Government its better service,
for business its’ fast and secure, and for citizens it is transparent and efficient.
The author evaluated that E-Banking could be used for successful E-Banking for
online bill payment, online brokerage, online account management, anywhere
banking, etc. The author concluded that E-Banking services provide one stop
service and informational unit that provides great benefits to banks, customers,
employers and Government.
7. Hogarth and Hilgert 2004, highlighted that electronic banking technology

represents a variety of different services, ranging from common ATM services
and direct deposit to Automatic Bill Payment (ABP), Electronic Transfer of
Funds (EFT) and computer banking (PC Banking). The use of E-Banking
Technologies had grown rapidly in the USA, while others have been adopting it
slowly. The authors have explored such factors that affect the adoption to adopt
three E-Banking technologies and changes in these factors over the time. They
have suggested that E-Banking Technology could not be aggregated into a single
category, and thus, “One Size Fits All” would not work. The use of E-Banking
depends upon how it helps in saving time, decrease the errors, improving
inaccurate accounting and preventing in manipulation of data.
8. Pikkarainen et al. 2004, highlighted that electronic banking technology had

created new ways of handling daily banking affairs especially via online banking
channel. The authors adopted technology acceptance model to leverage the online
environment. The model indicated online banking acceptance among private
banking customers in Finland through a sample survey. The findings of the study
indicated that perceived usefulness, information on online banking, security and
privacy, quality of service, ease of use on the website were the main factors
influencing online banking acceptance. The authors suggested that banks should
now more concentrate on their E-Banking issues so that online banking could
become more popular and adaptive for customers.
9. Goi C.L. 2005, studies the status of E-Banking in Malaysia specially the
challenges and opportunities. The study concludes that Malaysia still has not
reached a critical mass to ensure a sustained momentum, which can only be
achieved if the nervousness of trading via Internet is overcome. Technologies are
already here, it is the desire and willingness that needs to be converted into action.
Malaysian banks will have to develop appropriate E-Banking strategies to
successfully compete both in the local and global market place. Proper
understanding and planning is required to deploy the strategy or service
effectively and safety.
10. Malhotra and Singh 2005, provide theoretical aspect of internet-banking and
observe that internet-banking enables the banks to deliver services at a lower cost
than any existing mode of delivery i.e. $0.01 as survey conducted in US and
convenient for customers. The study reports that internet is not 100 percent secure
as it entails risk of operational security, privacy, reputation, legal etc. The study
also analyzes the current state of internet banking in India and concludes that only
33 banks, representing 37% of total Indian commercial banks are providing
transactional banking services in one form or the other where the share of new
private sector banks is higher with all banks providing internet services and 4
banks are fully transactional where FBs represent only 15%. At the end it suggests
that Indian banks should make effective policies to make it secure to achieve
customer confidence, removing all types of risks with proper built-in-safe guard
system to manage these risks.
11. Erickson et al. 2005, studied the technology acceptance of internet banking
in Estonia. The objective of the study was to see that to what extent customers
accept internet banking as a tool for the satisfaction. The findings of the study
suggested that internet banking proved to be beneficial for the customers.
However, banks need to put much efforts not only into making a user friendly
internet bank, but also to explain their customers how the internet bank was useful
to them.
12. Chalam and Nageswara 2006, focused that as the computer touched each
and every aspect of the economy, so banking sector was not an exception to it.
The objective of the study was to find out change in banking sector through the
techniques of E-Banking. The authors evaluated several E-Banking products like
ATM, EFT, ECS, EDI, Tele-Banking, etc. E-Banking had benefited to the
individual through anywhere, anytime banking; to traders and merchants through
immediate settlement of payment; to banks through unlimited network, online
banking, attracting and retaining the customers, debit and credit card facilities;
and to the nation through globalization of trade, more exports, more transparency
in business, etc. The researchers concluded that emerging challenge in E-Banking
was due to lack of awareness among people, no cyber laws by government and
low density of telephone lines and low computerization of banking activities.
They recommended that banks should adopt hardware and software security
measures, appoint skilled personnel and adoption of digital signature certification
authority so as to tackle the major challenges in E-Banking.
13. Krishnamurthy 2006, highlighted the advantages, risks, innovations and

convenience involved in E-Banking. ATM, telephone, internet and cluster
banking helped banks to deliver the products more effectively. The author, in his
paper, also described operational efficiency of E-Banking. It included basic E-
Banking, simple transactional and advanced transactional E-Banking. Each site
has offered a differential kind of services to customers. The author has also
commented on some risks such as loss of secrecy of the customers, financial
stability, fraud prone possibilities, eruption of legal claims, etc. So, the author has
suggested that banks should adopt such a strategy in which risks and innovation
in banking products move parallel and simultaneously.
14. Pepreya B.K. 2006, suggests that Internet-banking is very useful for prompt
payments and provide various facilities to the customers for 24 hours, anywhere
anytime. But some risks related to security are involved still every customer
wants a number of facilities anywhere anytime. So Internet-banking should be
economic, best affordable and secure from the present risks.
15. Kaleem A. and Ahmad S. 2008, aims to collect bank employees’ perceptions
of the potential benefits and risks associated with electronic banking in Pakistan.
The study shows that public bank employees who have professional degrees
consider ‘minimizing transaction costs’ and ‘reduction in HR requirements’ as
the most and the least important benefits of electronic banking respectively.
Private bank employees having masters or bachelor degrees, and less than 10
years of experience, perceive ‘time saving and minimizing inconvenience’ as the
major benefits of electronic banking. Branch managers viewed ‘facilitates quick
response’ as the most important benefit of electronic banking. Bankers in all
segments consider ‘government access to data’ as the biggest risk associated to
electronic banking. The empirical analysis 35 suggests that bankers in Pakistan
perceive electronic banking as tool for minimizing inconvenience, reducing
transaction costs and saving time.
16. R. K. Uppal 2008, it states that, transformation is taking a place in Indian

banks on different parameters. The contours of banking service have altered the
face of banking services dynamically and the banks are stepping towards E-
Banking are satisfied with the different E-Channels and their services but lack of
awareness is a major obstacle for the spread of more E-Banking service.
17. Geetika, Tanuj Tandon and Ashwini Upadhyay 2008, in their paper has
discussed the issues and prospects of Internet Banking in India. Along with the
perception of Internet Banking customers, non-customers and issues of major
concern in internet banking, they have also explored in brief about the securities
concerns regarding the services as well the level of awareness amongst E-
Banking users regarding various risks and frauds in E-Banking.
18. S. Anita 2008, it has described about Credit Card Frauds and their preventions
in her paper ATM cards, Credit cards, Debit cards as well as smart cards have
given a new shape to money with instant liquidity, constant flow of funds and
added convenience. Though these cards have provided the users with many
benefits, the chances of incurring heavy losses through them are also high.
19. Marzun Jokhi and Delaz Jokhi oct. 2008, in this paper they have put
forward the various do’s and don’ts regarding E-Banking which would help an
E-Banking user to pertain the different guidelines to be followed to ensure risk
free internet banking experience.
20. A report of the Study Group on Large Value of Bank Frauds issued by
RBI has in short described the various types of payment frauds, electronic frauds,
channel frauds and the challenges that banks face regarding their prevention.
Certain guidelines were also mentioned to prevent fraudulent experiences for E-
Banking users.
21. Muthukumaran 2008, has defined various types of E-Banking frauds like
Hacking means unauthorized access to data stored in computer system. Phishing
means receiving of e-mails by customers from fake sites looking same as the
original website of financial bank send by fraudsters requesting customers to click
on the link and enter their user name, password or other personal information to
access their accounts for some reason. The data received by the fraudsters will be
used by him to commit the frauds.
22. Economic times, 18 Feb 2009, Banks across the country reported a loss of
over Rs. 42/- Corer to internet or online banking and credit cards frauds during
April to December 2008 with the maximum amount being fraudulently
withdrawn using credit cards. While different private and public sector banks on
their part collectively reported a loss of Rs. 36.54/- corer to credit card frauds, the
states reported a loss of Rs. 6.57/- corer to internet frauds.
23. US Couple, Nilesh and Anshu Trivedi (DNA, November 2009), it has an
accounts with the Axis Bank in Vastrapur and operates it using the NRI net
banking system. The complaint states that someone withdrew the money from the
couple’s account on Oct 19, using the net banking system. Nilesh came to know
of the unauthorized withdrawal on Oct 23 and immediately informed the bank.
“The bank not responsible for the incident,” said Lal Singh Pawar, vice-president
of Axis Bank. He said that this could be a case of phishing.
24. Ganesan R. and Vivekanandan K. 2009, describe a secured hybrid

architecture model for the internet banking using hyper elliptic curve
cryptosystem and MD5. This hybrid model is implemented with the hyper elliptic
curve cryptosystem (HECC) and it performs the encryption and decryption
processes in an efficient way merely with an 80-bit key size. The various screen
shots given in this contribution shows that the hybrid model which encompasses
HECC can be considered in the internet banking environment to enrich the
privacy and integrity of the sensitive data transmitted between the clients and the
application server.
25. Khanna and Arora 2009, indicated that lack of training and low compliance
level of Reserve Bank of India guidelines are the main reasons of E-Banking
frauds. They have suggested that a regular internal control on E-Banking system
can be one of the preventive measure for which quality training is needed to be
provided to the banks staff, the people who are handling and have internal control
over electronic banking system because generally fraudsters tries to identify
loopholes in the control procedures.
26. Jamwal and Padha 2009, Reserve Bank of India had formed a Working
Group to find out the challenges faced in internet banking. The group found that
the major issues are relating to technology and security issues, legal issue and
regulatory and supervisor issue. On the basis of the report prepared and submitted
by working group to Reserve Bank of India (RBI), RBI has prepared various
guidelines to be followed by banks. Banks are reluctant to implement the same
because there is no monitoring committee set up to keep a check, so in spite of
guidelines provided to take safety and security measures yet the cases of e
banking frauds are on increase every year.
27. The Times of India during the 3rd week of Jan 2010, The Central
Government of India has cautioned tax payers that they should watch out for
fraudulent-mails making rounds online. The scam messages falsely inform
recipients that a tax refund awaits them, but they actually steal identification
details like credit card or bank account numbers. People, who hand over this
information to the fraudsters, face the risk of filching their credit card limits and
bank accounts robbed. The victims are further endangered that their private
credentials sold to additional Internet fraudsters. Vivek Gogia, Additional
Commissioner of Police (Economic Offense Wing, Delhi), said that the going on
cyber fraud resembled to phishing attempt.
28. Siddique and Rehman 2011, Computer is used as tool for committing the
frauds as computer is having huge data stored including secret data and
information also, computer is easily approachable to steal data by secretly
implanting key loggers and logic bombs. The data obtained is misused and after
using it is destroyed so the proof of facts and evidences are also lost sometimes
if there is no proper backup. Mobile is also used as a tool for committing frauds.
29. Richard and Hintau 2012, In order to prevent the phishing attacks anti-virus
and spam filter software’s are to be installed, firewalls should be on. Customers
should access the website only through Internet browser’s status bar or the
“https://” at the start of the URL in the address bar.
30. Patil 2012, has said that here are various types of Internet banking risk one
of it is information security risk, lack of data security techniques exposes banks
data to hackers or insider attackers by inserting viruses and stealing the data
which will be misused by the fraudsters in committing frauds, therefore causing
financial losses to the institutions.
31. Karimzadeh and Alam 2012, they have said that the major obstacles in
development of electronic banking are legal issues, security issues and technical
issues due to which e banking frauds are committed in order to prevent the same
and have development of E-Banking proper implementation E-legislations are to
be made, security policies to be adapted to build up the confidence in the minds
of customers that E-Banking is safe and secured to use, awareness to be done on
preventive measures to be taken by customers to avoid the incidence of E-
Banking frauds.
32. Singh 2012, article states that various kinds phishing techniques practiced by
the fraudsters. The various cases were reported by ICICI Bank and later on even
by UTI bank and state bank of India and others. In India there are several cases
relating to attacks on genuine websites.
33. Jassal and Sehgal 2013, even if few banks have framed security policies they
are proved to be ineffective because there are various loopholes and mistakes or
they are incomplete, or inefficient. In most of the banks security polices for users
does not contain the tips for the users about do’s and don’ts. Security policies for
banks are ambiguous and they do not explain clearly privacy statements to the
customers. There are inadequate policies even for user Ids and passwords.
Network providing hardware & software systems are also not properly designed
and upgraded regularly, back up policies are also not framed in proper manner.
34. Soni and Soni 2013, Various mandated recommendation on preventive

measures were given by Gopal krishna Working Group (GGWG) on safe and
secured E-Banking services such as each bank to create a separate information
security body that will exclusively work for information security management, to
frame security policy and get it approved from board and policy to be at least
reviewed annually but banks did not implement the same.
35. Parameshwara 2013, G. Gopal kirshna committee set up by RBI in 2011

recommended certain suggestions out of which one of it, states that fraud review
council must be formed in all banks by the fraud risk management group to
review frauds and take preventive steps regularly.
36. Jokhi 2014, The then Minister of State for Communication and IT, Mr.
Milind Deora has stated that the total loss suffered in first six months of 2013-14
by Indians as per RBI report was around RS. 54/- crores. E-banking frauds are
increasing each year out of which some cases are reported and others go
unreported in India due to lack of cyber law awareness in India.
37. Doiphode 2014, states that in order to have safe and secured E-Banking the
bank staff handling and controlling E-Banking system must be adequately trained
and properly selected. Thus it is always advisable to select the person who is
honest and dedicated to his work for the various posts in the E-Banking system
operating, controlling and handling department.
38. RBI, cybercrime fraud 2015, Data provided by Reserve Bank of India
regarding Cyber Crime in Banking for the Period 2015 to 2016 is as follows. 1.
16,486 cybercrimes related to ATM, Debit Cards, Credit Cards, and Net Banking
Frauds. 2. Numbers of frauds reported by RBI are 13,083 in the period of 2014
to 2015 and 9,500 in the period 2013 to 2014. 3. RBI has set up ReBIT (Reserve
Bank Information Technology Pvt. Ltd.) for taking care of IT and cyber security
including research for the financial sector and assist in the IT systems audit and
assessments.
39. Deepanshu Pattanayak, Divyesh Satishkumar Dixit, Kiran Antony and

other seven Person 2016, has stated in their paper titled “Frauds in the Indian
banking industry” some facts in their paper. Authors have focus majority on
NPAs that are paralyzing a financial position of RBI the authors have clearly
consider NPAs and other banking frauds that took place in commercial banks and
schedules banks in India. Responsible for this damage. It is mentioned by authors
that in the last three years public sector banks (PSBs) in India have lost a total of
22,743 crore on account of various banking frauds. According to this author some
of the junior as well as senior level employee of these banks are found and
involved in this fraud the authors have specifically mentioned about Syndicate
bank and Indian Bank employees involved in frauds. In analysis segment the
authors have stated that as per RBI bank frauds can be classified in three
category’s deposit related fraud, advances related frauds and services related
frauds the author have tabulated the data regarding frauds of the 2011 to 2015.
According to the authors private sector banks have more number of frauds
impacted to public sector banks.
40. Online banking fraud cases reported in 2017 Government of India, over
25,800 online banking fraud cases. In this report some disclosers are made on the
data provided by RBI it is mention in the article that as per RBI frauds related to
ATM/Credit/Debit card and Net banking as reported by the banks:- (Oct., Nov.,
Dec., 2017) 20,220 cases of fraud were reported in the last quarter, (Jan., Feb.,
Mar., 2017) 3,077 cases of fraud, (Apr., May, June,) 5,148 cases of fraud and
(July, Aug., Sept.,) 7,372 cases of frauds.
3.3 RESEARCH GAP:-
Review of literature reveals that E-Banking services such as Internet Banking,

ATMS, Mobile banking, Phone Banking, Cards have received significant amount
of 82 interests from academicians especially in the recent times. Majority of
studies have been conducted on identification factors influencing the adoption of
1. E-Banking services,
2. Application of extended Technology Acceptance Model (TAM) to E-Banking
sector,
3. Behaviour of non-users of E-Banking services,
4. Impact of demographic of adoption of E-Banking services,
5. Development scale to measure e-service quality,
6. Understanding resistance to E-Banking services behavior etc.
It is observed that perceived risk, trust security and privacy reminded the integral
part of majority of the studies. However, only few studied have been conducted
to address the security and privacy issues. Moreover, these studies primarily
focused on prevailing security and privacy practices of banks regarding E-
Banking channel rather than customer’s perceptions. Further, in India there is
dearth of literature on E-Banking services only few studies are available in this
regard. From the available sources, research could not find even a single study
which has been conducted in India to understand the perception of bank
customers, perception toward security and privacy concern, security and privacy
satisfaction regarding use of E-Banking services. Thus, gaps have been found
available in literature and present study attempts to fill the gaps.
As it is clear from the above brief reviews, there have been so many elaborate
studies conducted with regard to E-Banking services and its effect on the Indian
banking scenario, as well as the various kinds of E-Banking frauds and risks that
exist which make E-Banking a risk. This brings forth the gaps existent in the
research carried out on this topic:-
1. A microscopic study which includes all aspects of E-Banking frauds and its
effect on the Banking Scenario in a small region of the Nanded District along
with the possible remedial measures has still not been carried out.
2. None of previous eminent researcher studied by me of this topic. Has

mentioned about mechanism/guidelines provided by RBI to prevent E-Banking
frauds. Apply safety measures and how to recover the loss.
3. None of the researchers have mentioned any things about advertising for
educating, training the customers about E-Banking awareness frauds and safety.
4. None of the researcher have found held social media, E-media, NGOs,
responsible for creating awareness about E-Banking frauds and safety.
5. None of the researcher have held individual banks responsible for lack of E
Banking awareness frauds and safety.
6. None of the researchers have suggested any dynamic marketing, advertising,
campaign etc. solutions for creating awareness among customers about E-
Banking frauds and safety.
3.4 REFERENCES : -
1. Simon and Victor-1994, EFTPOS Marketing research for E-Banking services.
2. Husain F (1988). Computerization and Mechanization in Indian Banks (New

Delhi: Deep & Deep Publication).
3. Path rosé PP (2001). ‘Hi-Tech. Banking-prospects and Problem’, IBA Bull.

(July) 23(7).
4. Mr. Sameer Ratolikar 2001,Internet banking- Frauds & Defences: A Case

Study, Ethical Hacker, AGM & Chief Information Security Officer.
5. Janice Et.Al.-2002, interviews of Hong Kong banking services.
6. Aggarwal (2003), in his paper, looked for such avenues where E-Banking could
play significant role in E-Democracy.
7. Hogarth and Hilgert (2004), highlighted that electronic banking technology

represents a variety of different services.
8. Pikkarainen et al. (2004) highlighted that electronic banking technology.
9. Goi C.L. 2005, paper of Malaysia specially the challenges and opportunities of
E Banking sectors.
10. Malhotra and Singh 2005, theoretical aspect of internet banking and observe
customers risk and security.
11. Erickson et al.-2005,studied the technology acceptance of internet banking in

Estonia.
12. Chalam and Nageswara-2006, focused that as the computer touched each and
every aspect of the economy, and challenges in E-Banking.
13. Krishnamurthy-2006,highlighted the advantages, risks, innovations and

convenience involved in E-Banking.
14. Pepreya B.K.-2006, suggests that Internet-banking present risks.
15. Kaleem A. and Ahmad S. 2008, aims to collect bank employees’ perceptions
of the potential benefits and risks associated with electronic banking in Pakistan.
16. Indian Banking– Transformation through IT, R. K. Uppal&Rimpikaur,

Mahamaya Publishing House, New Delhi, edition 2008, page 280.
17. Geetika, TanujTandon and AshwiniUpadhyay 2008, in their paper have
discussed the issues and prospects of Internet Banking in India.
18. Credit Cards: Frauds and Precautions, S Anita– The ICFAI University Press
release, professional Banker, 2008.
19. Dos and Don’ts for Protecting Your Banking– Marzun Jokhi & Delnaz Jokhi,
Professional Banker, The ICFAI University Press release, 2008.
20. Combating fraud risk in payment systems– A report by study group on large
value bank frauds issued by RBI.
21. Muthukumaran-2008, has defined the various types of e banking frauds in

original website.
22. Online, credit card frauds cost banks 42 Cr–Economic times, 18 Feb 09.
23. NRI Couple loses Rs. 10,000 in E-Banking frauds in Gujarat, Ritesh Shah,
and DNA Friday, Nov 27, 2009. WWW.dnaindia.com
24. Ganesan R. and Vivekanandan K. 2009, describe a secured hybrid

architecture model for the internet banking using.
25. Khanna and Arora2009, indicated that lack of training and low compliance
level of Reserve Bank of India.
26. Jamwal and Padha 2009, Reserve Bank of India had formed a Working Group
to find out the challenges faced in internet banking..
27. Banking on the net makes sense–Vivek Gogia, The Times of India during the
3rd week of Jan 2010.
28. Siddique and Rehman-2011, Online Banking thesis,
29. Richard and Hintau-2012,“https://” at the start of the URL in the address bar.
30. Patil-2012, have said that here are various types of Internet banking risk.
31. Karimzadeh and Alam-2012,
32. Singh-2012, the various cases were reported by ICICI Bank and later on even
by UTI bank and state bank of India and others.
33. Jassal and Sehgal – 2013, even if few banks have framed security policies.
34. Soni and Soni-2013,Gopalkrishna Working Group (GGWG) on safe and

secured E-Banking services.
35. Parameshwara-2013, G. Gopalkirshna committee set up by RBI in 2011.

36. Jokhi-2014, the then Minister of State for Communication and IT, Mr. Milind
Deora.
37. Doiphode-2014, states that in order to have safe and secured e banking.
38. RBI, cybercrime fraud 2015, it has focus on RBI report 2015.
39. Deepanshu Pattanayak, Divyesh Satishkumar Dixit, Kiran Antony and other
seven Person 2016,http://www.IIMB.ac.in/research/sites/defaluts/files.
40. Online banking fraud cases reported in 2017 Government of India,

www.livemint.com.
CHAPETER 4 ANALYSIS AND INTERPRETATION OF DATA
4.1 INTRODUCATION:-
This chapter deals with the collection of data. The data collected is scrutinized,
tabulated, analysed and to end with, it is used for the study purpose. It is also
presented at a glance in the form of different tables, graphs, bar and pie designs
and interpretation.
In this, effort has been made to assess the usage of E-Banking services as
compared to ATM Banking, Mobile Banking and Internet Banking as well as
which services are easy and economical to find out awareness along with the
Bank Customers about E-Banking Frauds, Credit Card Frauds and Debit Card
Frauds such as Phishing, Skimming, Spoofing, Spamming and Carding. The
assessment has enabled the researcher to come to conclusions concerning various
aspects of E-Banking services and Frauds. Based on the data analysed, researcher
has mentioned some vital suggestions.
4.2 SOURCES OF DATA COLLECTION:-
There are two types of data, Primary Data and Secondary Data. When data is
collected from the specific source or source of origin, it is called Primary Data,
and it was collected by preparing an open ended questionnaire as well as
conducting personal interviews, survey and analysed the data there after.
The effectiveness of online Banking is analysed with the help of following

research instruments:-
1. Discussion with selected sample Bank branch Managers.
2. Discussion with selected sample Bank Employees.
3. Discussion with selected sample Bank Costumers.

4. Field Exploration. Secondary Data is readymade data which is available with
sample organizations previous researchers and in print and E-Media.
4.3. ANALYSIS OF DATA COLLECTION:-
The details are presented with Figures and Graphs. Pictorial presentation of
research creates easy and perpetual impression.
Table No. 4.A. indicates that,
1. 98 respondents (24.5%) (Age group is 20 to 30 years) are aware about E-

Banking.
2. Highest number of respondents, 102 (25.5%) (Age group of the 31 to 40 years)

aware about E-Banking.
3. 80 respondents (20%) (Age group is 41 to 50 years) are aware about E-

Banking.
4. Lowest number of respondents, 58 (14.5%) (Age group of the 51 to 60 years)

are aware about E-Banking.
5. 62 (15.5%) respondents from higher age group (more than 61years & above)
are aware about E-Banking.
Table No. 4.B. indicates that,
Total no. of 400 (100%) respondents, maximum 218 (54.4%) Male aware about
E-Banking, and 182 (45.5%) Female respondents are aware about E-Banking are
selected for the study purpose.
Table No. 4.C. indicates that,
Out of total 400 (100%) respondents,
1. 42 (10.5%) respondents having SSC academic Qualification are aware about

E-Banking,
2. 54 (13.5%) respondents are aware about E-Banking HSC Qualification,
3. 95 (23.5%) respondents are aware about E-Banking Graduation Qualification,
4. 99 (24.75%) respondents are aware about E-Banking PG Qualification,

5. 110 (27.75%) respondent are aware about E-Banking Other Qualification
Table No. 4.D. indicates that,
The details 80 (20%) respondents Teachers use E-Banking facilities, 42 (10.5%)

respondents are Doctors use E-Banking facilities, 53 (13.25%) respondents
Engineers use E-Banking facilities, 122 (30.5%) respondents Businessmen use
E-Banking facilities, 39 (9.75%) respondents Clerks use E-Banking facilities, 16
(4%) respondents Farmers use E-Banking facilities, 40 (10%) respondents House
wives E-Banking facilities and, lastly 8 (2%) respondents Other category’s use
E-Banking facilities.
Q1. What is the name of the Bank in which you have Account?
Table No. 4.1, indicates that,
Out of total 400 (100%) respondents, first 134 (33.5%) Customers of the E-
Banking service belong to the SBI Bank; second highest number 110 (27.5%)
Customers of the E-Banking service belong to the SBH Bank, third is lowest
number 52 (13%) Customers of the E-Banking service belong to the BOI and
fourth or final sampling 104 (26%) Customers of the E-Banking service belong
to the BOM/MGB Bank.
Q2. Which type of Bank A/C do you have?

Q3. Which facility do you avail for Bank transaction?
Table No. 4.3. is about different type of E-Banking facilities use by respondent
customers, out of total 400 (100%) responded, 154 (38.5%) respondent customers
use Internet Banking, 98 (24.5%) respondent customers use ATM Banking, 95
(23.75%) respondent customers use Mobile Banking and finally 53 (13.25%)
respondents use all of these E-Banking facilities.
Q4. Which type of E-Banking facility is easy?
Table No. 4.4 is about view expressed by respondent customers about E-Banking
facilities, out of total 400 (100%) responded, 154 (38.5%) respondent customers
expressed that Internet Banking facility is easy, 98 (24.5%) respondent customers
expressed that ATM Banking facility is easy, 95 (23.75%) respondent customers
expressed that Mobile Banking facility is easy and finally 53 (13.25%)
respondent customers expressed that all type of E-Banking facilities as easy.
Q5. Have you faced any problem while using E-Banking facility?
Table No. 4.5 provides information about difficulties in E-Banking. Faced by

respondent customers out of 400 (100%) respondents, maximum 240 (60%)
respondent customers have not faced any dificulty in operating E-Banking facility
where as 160 (40%) respondent customers faced various dificulties in operating
E-Banking facilities.
Q6. Are you satisfied after shifting from Traditional Banking to E-Banking?
Table No. 4.6 provides information about views of respondent customers

regarding shifting them from Traditional Banking to E-Banking, out of 400
(100%) respondents, 240 (60%) respondent customers are satisfied and 160
(40%) respondent customers are not satisfied.
Q7. Which among the following Bank card do you use while performing E-
Banking facilities?
Table No. 4.7 provides information about different type of banking cards used by
respondent customers and the type of account they have, out of 400 (100%)
respondents, 95 (23.75) respondent customers use ATM card facility, 185
(46.25%) respondent customers use debit card facility and they have saving
account holder, 120 (30%) respondent customers use credit card facilities and
they have current account holder.
Q8. How many times in a month do you use E-Banking facility?
Table No. 4.8 provides information about frequency of E-Banking facility used
by respondent customers, out of 400 (100%) respondents, 184 (46%) respondent
customers use E-Banking facility (1 to 5 times) in a month, 96 (24%) respondent
customers use E-Banking facility (5 to 10 times) in a month, 72 (18%) respondent
customers use E-Banking facility of (10 to 15 times) in a month, 48 (12%) of the
respondent customers use E-Banking facility (15 times & more times) in a month.
Q9. Does the Bank charges you extra for offering E-Banking Services?
Table No. 4.9 provides information about charges applied by the bank for
providing E-Banking facilities, out of total 400 (100%) respondents. Maximum
328 (82%) respondent customers expressed that banks apply charges for using E-
Banking facilities and minimum 72 (18%) respondent customers expressed that
bank do not apply any charges for utilizing E-Banking facilities.
Q10. Do you know E-Banking Frauds?
Table No. 4.10 indicates that, out of total, 400 (100%) respondents, maximum
248 (62%) respondents are aware about E-Banking frauds and minimum 152
(38%) respondents are not aware about as E-Banking frauds.
Q11. Are you aware about following types of E-Banking Frauds?
Table No. 4.11 indicates that, 68 (17%) respondents are aware about phishing
fraud, 51 (12.75%) respondents are aware about spoofing fraud, 43 (10.75%)
respondents are aware about carding fraud, 51 (12.75%) respondents are aware
about skimming fraud, 35 (8.75%) respondents are aware about spamming fraud,
and 152 (38%) respondents are aware about all types of frauds.
Q12. Have you experienced an E-Banking fraud with your own Bank
Account?
Table No. 4.12 indicates that, out of total 400 (100%) respondents. Maximum
246 (61.5%) respondents are experienced E-Banking fraud and 154 (38.5%)
respondents are not experienced any E-Banking fraud, with their own Bank
Account.
Q13. Which of the following type of E-Banking fraud occurs mostly?
Table No. 4.13 indicates that out of total 400 (100%) respondents, 154 (38.5%)
respondents are expressed the possibility of occurrence of E- Banking Fraud of
Internet Banking facilities, 98 (24.5%) respondents are expressed the possibility
of occurrence of E- Banking Fraud in ATM Banking facilities, 95 (23.75%)
respondents are expressed the possibility of occurrence of E-Banking Fraud in
Mobile Banking facilities and finally 53 (13.25%) respondents are expressed the
possibility of occurrence of E-Banking Fraud in all above E-Banking facilities.
Q14. Have you experienced any fraud while using your ATM Card / Debit
Card / Credit Card of the Bank ?
Table No. 4.14 indicates that, fraud experience use of any cards out of total 400
(100%) respondents, maximum 305 (76.25%) respondent customers are not
experienced any E-Banking fraud while using their own ATM/Debit/Credit Bank
Cards and 95 (23.75%) respondent customers are faced E-Banking frauds while
using their own ATM/Debit/Credit Bank Cards.
Q15. While performing following transactions, which frauds you have
Experienced?
➢ Explanation of Types of frauds experienced by the respondents:-
1. Fraud by using PIN of ATM:-
A. 95 (23.75%) respondents agreed on the Fraud by using PIN of ATM.
B. 156 (39%) respondents neutral on the Fraud by using PIN of ATM.
C. 149 (37.25%) respondents disagreed on the Fraud by using PIN of ATM.
2. Fraud by unknown calls and inquiry:-
A. 96 (24%) respondents are agreed on the Fraud by unknown calls and inquiry.
B. 144 (36%) respondents are neutral on the Fraud by unknown calls and inquiry.
C. 160 (40%) respondents are disagreed on the Fraud by unknown calls and
inquiry.
3. Showing ATM card transaction by lucky draw and lottery:-
A. 95 (23.75%) respondents are agreed on the Showing ATM card transaction by

lucky draw and lottery.
B. 172 (43%) respondents are neutral on the Showing ATM card transaction by
lucky draw and lottery.
C. 133 (33.25%) respondents are disagreed on the Showing ATM card transaction
by lucky draw and lottery.
4. No other frauds ever found:-

A. 211 (52.75%) respondents are agreed on the no other frauds ever found.
B. 77 (19.25%) respondents are neutral on the no other frauds ever found.
C. 112 (28%) respondents are disagreed on the no other frauds ever found.
5. Respondents experienced Other Type of Frauds:-
A. 000 (000%) no results on the above point.
B. 000 (000%) no results on the above point.
C. 000 (000%) no results on the above point.
Q16. Are you sure that your E-Banking transaction is safe while doing online
shopping?
Table No. 4.16 indicates that out of total 400 (100%), Maximum 288 (72%)
respondents feel secure and safe about their E-Banking transaction while
performing on-line shopping and 112 (28%) respondents do not feel secure and
safe.
Q17. What is your opinion about chances of frauds you may face while Using
E-Banking service?
➢ Explanation of Respondent’s response about feeling chances of
occurrence of frauds during using E-Banking service:-
1. Fraud by Phishing:-
A. 68 (17%) respondents are agreed on the Fraud by Phishing.
B. 175 (43.75%) respondents remained neutral on the Fraud by Phishing.
C. 157 (39.25%) respondents are disagreed on the Fraud by Phishing.
2. Fraud by way of Spoofing:-
A. 51 (12.75%) respondents are agreed on the Fraud by way of Spoofing.
B. 183 (45.75%) respondents remained neutral on the Fraud by way of Spoofing.
C. 166 (41.5%) respondents are disagreed on the Fraud by way of Spoofing.
3. Fraud by way of Carding:-
A. 43 (10.75%) respondents are agreed on the Fraud by way of Carding.
B. 180 (45%) respondents remained neutral on the Fraud by way of Carding.
C. 177 (44.25%) respondents are disagreed on the Fraud by way of Carding.
4. Fraud by way of Spamming:-

A. 35 (8.75%) respondents are agreed on the Fraud by way of Spamming.
B. 185 (46.25%) respondents remained neutral on the Fraud by way of

Spamming.
C. 180 (45%) respondents are disagreed on the Fraud by way of Spamming.
5. Fraud by way of Skimming:-
A. 51 (12.75%) respondents are agreed on the Fraud by way of Skimming.
B. 176 (44%) respondents remained neutral on the Fraud by way of Skimming.
C. 173 (43.25%) respondents are disagreed on the Fraud by way of Skimming.
Q18. What is your opinion about E-Banking Service?

➢ Explanation about Respondent’s general opinion about overall E-
Banking Facilities:-
1. Saves Time:-
A. 320 (80%) respondents are agreed on the Saves our Time.
B. 72 (18%) respondents are neutral on the Saves our Time.
C. 08 (02%) respondents are disagreed on the Saves our Time.
2. 24 Hours Service:-
A. 256 (64%) respondents are agreed on the 24 Hours Service.
B. 128 (32%) respondents are neutral on the 24 Hours Service.
C. 16 (04%) respondents are disagreed on the 24 Hours Service.
3. Safe Service:-
A. 202 (50.5%) respondents are agreed on the Safe Service.
B. 86 (21.5%) respondents remained neutral on the Safe Service.
C. 112 (28%) respondents are disagreed on the Safe Service.
4. Quick Service:-
A. 216 (54%) respondents are agreed on the Quick Service.
B. 107 (26.75%) respondents remained neutral on the Quick Service.
C. 77 (19.25%) respondents are disagreed on the Quick Service.
5. Accuracy in Service:-
A. 152 (38%) respondents are agreed on the Accuracy in Service.
B. 140 (35%) respondents remained neutral on the Accuracy in Service.
C. 108 (27%) respondents are disagreed on the Accuracy in Service.
Q19. What efforts have been taken by your Bank to provide you E-Banking
services?
➢ Explanation of Respondents response about efforts taken by Bank:-
1. Provided information about E-Banking:-
A. 272 (68%) respondents are agreed on the Provided information about E-

Banking.
B. 88 (22%) respondents are neutral on the Provided information about E-

Banking.
C. 40 (10%) respondents are disagreed on the Provided information about E-

Banking.
2. Provided information by advertisement:-
A. 216 (54%) respondents are agreed on the Provided information by

advertisement.
B. 152 (38%) respondents are neutral on the Provided information by

advertisement.
C. 32 (08%) respondents are disagreed on the Provided information by

advertisement.
3. Provided information by Mobile Phone – SMS:-
A. 198 (49.5%) respondents are agreed on the Provided information by Mobile

Phone – SMS.
B. 159 (39.75%) respondents are neutral on the Provided information by Mobile
Phone – SMS.
C. 43 (10.75%) respondents are disagreed on the Provided information by Mobile

Phone – SMS.
4. Conducted Awareness Campaigns:-
A. 176 (44%) respondents are agreed on the Conducted Awareness Campaigns.
B. 136 (34%) respondents are neutral on the Conducted Awareness Campaigns.
C. 88 (22%) respondents are disagreed on the Conducted Awareness Campaigns.
5. All of the above:-
A. 196 (49%) respondents are agreed on the All of the above points.
B. 148 (37%) respondents are neutral on the All of the above points.
C. 56 (14%) respondents are disagreed on the All of the above points.
Q20. What inspired you to use E-Banking service?

➢ Explanation about What Inspired Respondent for using E-Banking:-
1. It saves time:-
A. 320 (80%) respondents are agreed that saves our time.
B. 72 (18%) respondents remained neutral that saves our time.
C. 08 (02%) respondents are disagreed that saves our time.
2. Provides safety:-
A. 202 (50.5%) respondents are agreed on the Provides safety service.
B. 86 (21.5%) respondents remained neutral on the Provides safety service.
C. 112 (28%) respondents are disagreed on the Provides safety service.
3. Provides 24 hours service:-
A. 256 (64%) respondents are agreed on the Provides 24 hours service.
B. 128 (32%) respondents remained neutral on the Provides 24 hours service.
C. 16 (04%) respondents are disagreed on the Provides 24 hours service.
4. Provide service at our home:-
A. 192 (48%) respondents are agreed on the Provide service at our home.
B. 136 (34%) respondents are neutral on the Provide service at our home.
C. 72 (18%) respondents are disagreed on the Provide service at our home.
5. There is no need to physically carry cash:-
A. 179 (44.75%) respondents are agreed on the above point.
B. 152 (38%) respondents are neutral on the above point.
C. 69 (17.25%) respondents are disagreed on the above point
Q21. By which way your Banks assures you, that there will not be any type
of fraud in E-Banking transaction?
➢ Explanation about Respondent’s response to Methods applied by
Banks for assuring customers for “No Fraud” in E-Banking:-
1. By sending SMS alert:-
A. 288 (72%) respondents are agreed on the sending SMS alert.
B. 72 (18%) respondents are neutral on the sending SMS alert.
C. 40 (10%) respondents are disagreed on the sending SMS alert.
2. Sending information by E-Mail:-
A. 183 (45.75%) respondents are agreed on the Sending information by E-Mail.
B. 153 (38.25%) respondents are neutral on the Sending information by E-Mail.
C. 64 (16%) respondents are disagreed on the Sending information by E-Mail.
3. Orally, when customer is physically present in the Bank:-
A. 192 (48%) respondents are agreed on the Orally, when customer is physically
present in the Bank.
B. 112 (28%) respondents are neutral on the Orally, when customer is physically
C. 96 (24%) respondents are disagreed on the Orally, when customer is physically
4. By conducting awareness programs:-
A. 176 (44%) respondents are agreed on the conducting awareness programs.
B. 144 (36%) respondents are neutral on the conducting awareness programs.
C. 80 (20%) respondents are disagreed on the conducting awareness programs.
5. Through Advertisements in various media:-
A. 193 (48.25%) respondents are agreed on the Advertisements in various media.
B. 159 (39.75%) respondents are neutral on the Advertisements in various media.
C. 48 (12%) respondents are disagreed on the Advertisements in various media.
Q22. Which precautions do you follow to prevent frauds in your E-Banking

Transactions?
➢ Explanation about Precautions followed by customers in E-Banking
Transactions:-
1. Not to disclose our PIN to others:-
A. 211 (52.75%) respondents are agreed on not to disclose our PIN to others.
B. 80 (20%) respondents are neutral on the not to disclose our PIN to others.
C. 109 (27.25%) respondents are disagreed on the not to disclose our PIN to
others.
2. Not to provide the information about our account on call to others:-
A. 256 (64%) respondents are agreed on not to provide the information about our
account on call to others.
B. 120 (30%) respondents are neutral on not to provide the information about our
account on call to others.
C. 24 (06%) respondents are disagreed on not to provide the information about

our account on call to others.
3. To keep all receipts in safety:-
A. 176 (44%) respondents are agreed on the keep all receipts in safety.
B. 152 (38%) respondents are neutral on the keep all receipts in safety.
C. 72 (18%) respondents are disagreed on the keep all receipts in safety.
4. To change our ATM PIN time to time:-
A. 189 (47.25%) respondents are agreed on change our ATM PIN time to time.
B. 99 (24.75%) respondents are neutral on change our ATM PIN time to time.
C. 112 (28%) respondents are disagreed on change our ATM PIN time to time.
5. Not to give our ATM PIN to others for use:-
A. 208 (52%) respondents are agreed on not to give our ATM PIN to others for
use.
B. 90 (22.5%) respondents are neutral on not to give our ATM PIN to others for
use.
C. 102 (25.5%) respondents are disagreed on not to give our ATM PIN to others
for use.
Q23. Do you response to E-Banking?

➢ Explanation about Respondent’s response E-Banking:-
1. It indicates that, 144 (36%) respondents respond to fake calls and 256 (64%)
respondents do not respond to fake calls.
2. It indicates that, 189 (47.25%) respondents share Their ATM PIN with others
and 211 (57.75%) respondents do not share their ATM PIN with others.
3. It indicates that, minimum 192 (48%) respondents allow other persons to use
respondent’s ATM card and 208 (52%) respondents do not allow other persons
to use respondent’s ATM card.
4. It indicates that, minimum 161 (40.25%) respondents share their E-banking

password with others and 239 (59.75%) respondents had selected to not share
their E-Banking password with others.
5. It indicates that, minimum 109 (27.25%) respondents share their OTP number
with others and 291 (72.75%) respondents do not share their OTP Number with
others.
Q24. Do you think that transactions done with the help of ATM Card, Debit
Card, Credit Card and Online Banking are secured and safe?
Table No. 4.24 indicates that, maximum 238 (59.5%) respondent’s feel that E-
Banking transactions are safe and, minimum 162 (40.5%) respondents feel that
E-Banking Transactions are not secure and safe.
Q25. Do you think that, working speed has been improved with E-Banking?
Table No. 4.25 indicates that, maximum 240 (60%) respondents feel that working
speed has been improved due to E-Banking and minimum 160 (40%) respondents
feel that working speed has not been improved due to E- Banking.
Q26. Which Bank do you prefer on priority for On-line Banking Services?
Table No. 4.26 indicates that out of 400 (100%) Respondents, 134 (33.5%)
respondents prefer SBI E-Banking service, 110 (27.5%) respondents prefer SBH
E-Banking service, 52 (13%) respondents prefer BOI E-Banking service and 104
(26%) respondents prefer BOM / MGB E-Banking service.
Q27. What help your Bank provides you to keep your E-Banking service
safe?
➢ Respondent’s opinion about help provided by the Bank to keep their
E-Banking transactions safe:-
1. Providing safety transaction:-
A. 248 (64%) respondents are agreed on Providing safety transaction.
B. 104 (26%) respondents remained neutral on Providing safety transaction.
C. 48 (12%) respondents are disagreed on Providing safety transaction.
2. By providing secure password:-
A. 272 (68%) respondents are agreed on providing secure password.
B. 88 (22%) respondents remained neutral on providing secure password.
C. 40 (10%) respondents are disagreed on providing secure password.
3. By providing secure PIN code:-
A. 288 (72%) respondents are agreed on providing secure PIN code.
B. 80 (20%) respondents remained neutral on providing secure PIN code.
C. 32 (08%) respondents are disagreed on providing secure PIN code.
4. By providing hard copy/print of statement of Bank transaction:-
A. 208 (52%) respondents are agreed on providing hard copy/print of statement

of Bank transaction.
B. 128 (32%) respondents remained neutral on providing hard copy/print of

statement of Bank transaction.
C. 64 (16%) respondents are disagreed on providing hard copy/print of statement

of Bank transaction.
5. By providing OTP number:-
A. 208 (52%) respondents are agreed on providing OTP number.
B. 128 (32%) respondents remained neutral on providing OTP number.
C. 64 (16%) respondents are disagreed on providing OTP number.
Q28. For which purpose do you use E-Banking services?

➢ Explanation about Facilities used by respondents in E-Banking
services:-
1. For Payment of Bill:-

A. 264 [66%] respondents agree on Payment of Bill.
B. 88 [22%] respondents remained neutral on Payment of Bill.
C. 48 [12%] respondents disagree on Payment of Bill.
2. For Paying online fees:-
A. 272 [68%] respondents agree on Paying online fees.
B. 96 [24%] respondents remained neutral on Paying online fees.
C. 32 [08%] respondents disagree on Paying online fees.
3. For Transfer of money:-
A. 216 [54%] respondents agree on Transfer of money.
B. 136 [34%] respondents remained neutral on Transfer of money.
C. 48 [12%] respondents disagree on Transfer of money.
4. For Fix deposit:-
A. 176 [44%] respondents agree on Fix deposit.
B. 152 [38%] respondents remained neutral on Fix deposit.
C. 72 [18%] respondents disagree on Fix deposit.
5. For Booking tickets:-
A. 248 [62%] respondents agree on Booking tickets.
B. 112 [28%] respondents remained neutral on Booking tickets.
C. 40 [10%] respondents disagree on Booking tickets.
Q29. Which problem you often face while using E-Banking facilities?
➢ Explanation about Problems often faced by Respondents while using
facilities of E-Banking:-
1. Forgetting the password:-
A. 144 [36%] respondents agree on Forgetting the password.
B. 72 [18%] respondents remained neutral on Forgetting the password.
C. 184 [46%] respondents disagree on Forgetting the password.
2. Problems with Bank’s websites:-
A. 112 [28%] respondents agree on Problems with Bank’s websites.
B. 80 [20%] respondents remained neutral on Problems with Bank’s websites.
C. 208 [52%] respondents disagree on Problems with Bank’s websites.
3. Slow online process:-
A. 97 [24.25%] respondents agree on Slow online process.
B. 104 [26%] respondents remained neutral on Slow online process.
C. 199 [49.75%] respondents disagree on Slow online process.
4. Mobile phone hacking:-
A. 165 [41.25%] respondents agree on Mobile phone hacking.
B. 95 [23.75%] respondents remained neutral on Mobile phone hacking.
C. 140 [35%] respondents disagree on Mobile phone hacking.
5. Unable to handle mobile phone or computer [Lack of Technical

Competency]
A. 168 [42%] respondents agree on Unable to handle mobile phone or computer

and Lack of Technical Competency.
B. 88 [22%] respondents remained neutral on Unable to handle mobile phone or

computer and Lack of Technical Competency.
C. 144 [36%] respondents disagree on Unable to handle mobile phone or

computer and Lack of Technical Competency.
Q30. What kind of secure and safety facilities your Bank provides while
performing online payment?
➢ Explanation about Respondent’s opinion about secure and safe
facilities provided by the Bank for on-line payment :-
1. Provides information about the transaction:-

A. 296 [74%] respondents agree on Provides information about the transaction.
B. 72 [18%] respondents remained neutral on Provides information about the

transaction.
C. 32 [08%] respondents disagree on Provides information about the transaction.
2. Provides information about available balance:-
A. 280 [70%] respondents agree on Provides information about available balance.
B. 64 [16%] respondents remained neutral on Provides information about

available balance.
C. 56 [14%] respondents disagree on Provides information about available

balance.
3. Provides OTP number:-
A. 296 [74%] respondents agree on Provides OTP number.
B. 80 [20%] respondents remained neutral on Provides OTP number.
C. 24 [06%] respondents disagree on Provides OTP number.
4. Sends SMS about transaction:-
A. 288 [72%] respondents agree on Sends SMS about transaction.
B. 57 [14.25%] respondents remained neutral on Sends SMS about transaction.
C. 55 [13.75%] respondents disagree on Sends SMS about transaction.
5. Provides receipt of every transaction:-
A. 264 [66%] respondents agree on Provides receipt of every transaction.
B. 88 [22%] respondents remained neutral on Provides receipt of every

transaction.
C. 48 [12%] respondents disagree on Provides receipt of every transaction.
Q31. How do you feel about the efficiency of E-Banking compared with
Traditional Banking?
Table No. 4.31 indicates that Respondent’s opinion about efficiency of E-
Banking compared with Traditional banking facility out of 400 (100%).
Maximum 184 (46%) respondents are very much satisfied for the facility, 56
(14%) respondents are satisfied for the facility, 135 (33.75%) respondents are not
satisfied for the facility and 25 (6.25%) respondents they are not able to decide
for these facilities.
Q32. Which of the following Bank is safe for providing E-Banking service?
Table No. 4.32 indicates that the distribution of the sample of Respondent’s
Opinion about most safe Bank for providing E-Banking Services out of 400
(100%), Maximum 134 (33.5%) respondents are SBI Bank, 110 (27.5%)
respondents are SBH Bank, 52 (13%) respondents are BOI Bank and finally 104
(26%) respondents are BOM/MGB Bank. Finally observe that SBI bank is highly
secure for providing E-Banking services.
Q33. Do you expect some more improvements other than E-Banking

facilities?
Table No. 4.33 indicates that out of 400 (100%) respondents, as per opinion about
more improvement other than E-Banking facilities, 144 (36%) respondents are
expects and maximum 256 (64%) respondents do not expect any improvement in
other facilities other than E-Banking facilities.
Q34. What improvements you would suggest regarding E-Banking?

Table No. 4.34 indicates that the Respondents as per suggestions for
improvement regarding E-Banking service out of 400 (100%). 90 (25%)
respondents are that to provide training to customers about E-Banking, 120 (30%)
respondents are that to spread E-Banking information to maximum people, 112
(28%) respondents that remove fear about E-Banking from the mind of illiterate
customers, 46 (13%) respondents are that Create awareness about E-Banking, 32
(4%) respondents are that All of the above suggestions to improvement by E-
Banking service.
4.4 TESTING OF HYPOTHESIS :-
1. Hypothesis :- There is no association between Age and awareness of E-

Banking Customers.
2. Hypothesis :- There is no association between Sex/Gender and awareness of

E-Banking Customers.
3. Hypothesis :- There is strong association between Qualification and awareness
of E-Banking Customers.
4. Hypothesis :- There is no association between Occupation and awareness of E-

Banking Customers.
CHAPTER 5 FINDINGS, CONCLUSIONS AND SUGGESTION
5.1 INTRODUCTION:-
In this chapter an attempt is made to present the conclusions based on previous

chapters. The study of E-Banking services and Frauds was carried out use primary
sources as well as secondary sources of information. The information thus
provided was segregate on the basis of various socio-economic parameters and
then analysed in tabular as well as graphical format. Conclusions have been
drawn on the various segregations on the basis of the analytical tools. These
conclusions have provided base on which the researcher was able to meet the
objectives of the study.
The rationale behind the study was verified on the basis of these conclusions as
well as the final conclusions that were drawn from the various segregations have
enable the researcher to pin point the exact level of awareness amongst E-
Banking customers about E-Banking services and the potential risks associated
with them while availing them, suggestions are also given for creating awareness
about E-Banking frauds and adopt proper safety and security system for banking
industry.
5.2 MAJOR FINDINGS OF THE OVERALL STUDY:-
1. During this research study the researcher has found out and met many Bank
customers who were absolutely unaware about the concept of E-Banking, the
frauds that occurs in E-Banking transactions and safety measures that are
available and needed to be taken to prevent E-Banking frauds and overcome the
losses.
2. During the research process the researcher had an opportunity to converse with
various bank employees on the research topic. During the discussion and after
going through review of literature the researcher has found that in many cases
bank employees are also responsible for committing E-Banking frauds of various
types.
3. During the research study researcher came to know about various types of E-
Banking frauds.
4. Researcher also came to know about losses suffer by various banks for different
years.
5. Researcher also came to know the methodology operated by E-Banking
fraudsters and researcher has tried to mention it in order to alert the bank
customers.
5.3 CONCLUSIONS:-
1. There is no much research work found done on E-Banking frauds and safety
measures.
2. Awareness about E-Banking frauds and safety measures has not been found
spread to mass of people it is found that it is still restricted only in the group of
average educated person.
3. Major responsible organization’s such as banks, Govt., organization,
educational institutions, training centres, NGOs, etc. none of them have found
made any committed efforts for creating awareness in people regarding E-
Banking frauds and safety measures.
4. The data collected about quantum of E-Banking frauds has been found
increasing in every year despite of continuous education, training, introduction of
new software’s, introduction of new technology applied for preventing E-
Banking frauds and applying safety measures. The correct reason for this scenario
is still not known.
5. Majority of population still believe and use traditional banking pattern just
because of having fear of risks involved in operating E-Banking transaction or
due to incompetency of handling Electronic gadgets.
6. Many times internet connectivity is on toss and E-Banking transactions get
held up for long duration this is critical problem.
7. Banks have started new methodology to bring down risk factors concern with
E-Banking frauds efforts such as linking Aadhar card number, PAN number,
Biometric identification number and digital presence of customers.
8. E-Banking has provided beautiful opportunity to people for effortless shopping
through online shopping. That is why people are preferring online shopping and
E-Banking.
5.3.1. Conclusion about E-Baking frauds and safety awareness of

Customers:-
This Study of Electronic Banking Frauds and Safety Awareness of Electronic

Banking Customers in Nanded District was conducted during the year 2012 to
2022. In order to study E-Banking and Safety awareness amongst E-Banking
customers in Nanded District, a survey of 400 selected E-Banking customers was
conducted. Efforts have been made to present some useful and interesting
conclusions pertaining to present studies.
5.4. SUGGESTIONS:-
5.4.1. SUGGESTIONS FOR FINANCIAL INSTITUTIONS:-
• Financial institutions should carry out customer awareness about E-Banking

Frauds by organizing seminars, workshops on the subjects.
• Regular warning and alert mails should be sent to the customers concerning E-
Banking operational Safety measures.
• Multi-layered Security is the best clarification against E-Banking Frauds, hence
password protected debit card swipes, increase in ATM security, and verification
of authentication by thumb scan and retina scan should be implement on
compulsory basis.
• Banks should distribute brochures creating awareness about E-Banking Frauds
at ATMs, bank branches as well as public places and Compulsory usage of virtual
keypads, password protected pages for online transactions.
• Use of visual as well as print media for creating customer awareness through
advertisements.
5.4.2. SUGGESTIONS FOR THE GOVERNMENT:-
• The Central and State Government should make use of public place like railway
and bus stations, airports for creating customer awareness using posters,
announcements and visuals.
• RBI should take help of Mobile Network Service providers for sending bulk
messages to citizens, warning them about potential E-Frauds.
• The Governments should control the use of personal mobile number holder
information by Mobile facilities or Internet services providers.
• RBI should issue general circulars to all private as well as public sector banks
regularly to ensure creation of awareness about E-Banking Frauds. It should also
monitor the steps taken by the financial institutions in ensuring E-Banking
operational Safety.
• Governments should use mass media on a large scale for creating customer
awareness. Celebrities should also be used to extend the message of E-Banking
Safety via advertisements in News Papers, Televisions and Radio.
5.4.3. SUGGESTIONS FOR THE E-BANKING CUSTOMERS:-
• The E-Banking customers are advise to have unique passwords which cannot
be guesses by the other people. Do not use password like date of birth, vehicle
number, age, your name/middle name, name of children, phone number, personal
code, simple numbers like 12345, etc. try to have an alpha numeric password
change your password regularly, remember your password, and never write it
down.
• It is a good idea to sometimes log in and check the record for any strange or
unexpected transaction.
• Crook in the Online Banking world regularly send emails that seem to be from
legitimate financial institutions. These emails can appear to believable because
they contain the logo of a real online bank. However, these emails often contain
a link that leads you to a fake site considered to lure you into compromise
personal information. These suspicious emails can be easily recognized because
they will usually fail to address you correctly, they contain many grammatical
errors and they have links to suspicious or unfamiliar domains.
• The customers are advise to avoid internet banking or accessing sensitive
information by using Wi-Fi from a local cyber cafe as it may not be secure.
• Obtain on-line banking direction and Safety tips from your financial institution.
If someone contacts a user via E-Mail or the Internet and claim to be a
representative from his/her financial institution, do not give them any
information. The user should contact his/her financial institution to verify the
request.
• Before submitting bank details or other sensitive information the following
checks will help ensure that the site uses encryption to protect our personal data:
if the address bar is visible, the URL should start with ‘https://’ (‘S’ is stands for
secured) rather than the usual ‘http://’ please note that the fact that website is
using encryption doesn’t necessarily mean that the same is legitimate. It only tells
us that data is being sent in encrypted form.
• Anti–virus and firewall protection keeps a computer safe from viruses that can
steal space on user computer’s hard drive or ROB Personal information from
them. In the ultimate analysis, the issues of E-Banking in India must be reconciled
with a safe and secure banking environment. The human being is the weakest link
in the security chain and they must be made aware about the dangers of online
disclosure for the successful implementation of E-Banking and M-Banking in
India.
5.5 SCOPE FOR FUTURE RESEARCH STUDY:-
• The same kind of study can be carried out at a national level as the number of
banks. Would be more nationally which would lead to a broader view point on
the issue of E-Banking Frauds and Safety measures taken by various banks to
prevent them.
• A nation-wise comparison can also be made to conclude the world wide
scenario regarding how different major economic superpowers as well as smaller
nations have been affected by the E-Banking Frauds and what are the steps taken
by the respective national governments to prevent them.
• The period of study can be expended to a length of ten years or fifteen years to
trace the beginning and the progressive trend of E-Banking Frauds.
• An analytical study at state level as well as national level can be made on the
same topic using more in – depth analytical tools.
• A study of the effect of awareness campaign carried out by different states as
well as the national government of India can be done, tracing the importance of
mass media in alerting the public regarding the hazards of E-Banking Frauds. The
results of such campaigns can be analysed by studying the rate of increase or
decrease in E-Banking Frauds after such campaigns.
• Bank should conduct training programs for employees and provide separate
counter in banks for attaining E-Banking complaints.
CHAPTER 6 SUMMARY
In this chapter an attempt is made to present the conclusions based on previous
chapters. The study of E-Banking services and Frauds was carried out use primary
sources as well as secondary sources of information. The information thus
provided was segregate on the basis of various socio-economic parameters and
then analysed in tabular as well as graphical format. Conclusions have been
drawn on the various segregations on the basis of the analytical tools. These
conclusions have provided base on which the researcher was able to meet the
objectives of the study.
The rationale behind the study was verified on the basis of these conclusions
as well as the final conclusions that were drawn from the various segregations
have enable the researcher to pin point the exact level of awareness amongst E-
Banking customers about E-Banking services and the potential risks associated
with them while availing them, suggestions are also given for creating awareness
about E-Banking frauds and adopt proper safety and security system for banking
industry.
E-Banking is more of science than talent, as it is performed by using different
electronic devices such as computers, telephone, and mobile, internet etc. It helps
in bringing technology in the hands of clients and making them operate and
manage on their own. Today’s young generation is well versed with the use of
internet and is expected to be the future online customers. Financial transactions
to be carried by the banks will be totally by using computers and technology.
Internet has made it possible to bring both customers and suppliers together to
share critical business information. For examples, Indentures Global Trust
Services helps banks and their customers carry out secure payments online and
to deal with other risk management system. The roles of asymmetric information,
adverse selection, and moral hazards have been examined extensively in the
literature in connection with lending. Today, a substantial amount of lending is
done over the internet.
CHAPTER 7 BIBLIOGRAPHY
➢ Books:-
1. R.K. Uppal and Rimpi Kaur, “Indian Banking – Transformation through IT”,
Himalaya Publication house, New Delhi, edition 2008.
2. R.K. Uppal and Rimpi Kaur, “E-Banking in India-Challenges and
Opportunities”, Eastern Book corporation, 2007.
3. S.B. Verma, S.K.Gupta, M.K. Sharma, “E-Banking and development of
Bank”, Deep and Deep Publication, New Delhi, 2007,
4. S.S. Kaptan, “Indian Banking in electronic”, Sarup and Sons, New Delhi, 2003.
5. Vasu Deva, “E-Banking”, Common wealth publisher, New Delhi, 2005.
6. N. Subramani, M. Murugesan, “E-Banking and E-Commerce: Emerging Issues
in India”, Abhijeet Publications, 2008,
7. Raghunath Desai, “E-Banking”, Sristhi Book distrubutiors, New Delhi, 2007
8. D.Muraleedharan, “Modern Banking”, New edition,
9. “Net Banking- Directory : A reference guide on banking technology industry”,
First edition, May 2002, published by Net Banking India.
10. Firdos Temurasp Shroff, “Modern Banking Technology”, Norther Book
Centre, New Delhi, 2007.
11. Ragunath Desai, “E-Banking”, Sristhi book distributors, New delhi, 2007,
12. Uppal R.K. “Indian banking and information technology”, New century
publications, 2006, p 18.
13. IIB, “E-Banking and IT”, Macmillan publishers Indian Ltd, p 337
14. Parameshwaran R. and Natarnajan S. “Indian banking theory,” s. chand
group,
15. David cracknel, Electronic banking for poor, panacea, potential and pitfalls.
16. IIBF. “General bank management”, Macmillan publishers India Ltd, p 45
17. IIBF. “General bank management”, Macmillan publishers India Ltd, p 78
18. IIBF. “General bank management”, Macmillan Ltd, p 67
19. Kulkarni, R.V. and Desai, B.L., “knowledge based system in banking sector”,
20. David cracknel, electronic banking for poor, Panacea, potential and pitfalls,
21. David cracknel, electronic banking for poor, Panacea, potential and pitfalls,
22. Modern Banking Book, D. Muraleedharan , P.N. 311
23. Bhavana Chauhan, E-Banking Frauds and Safety dissertation information.
24. Bihari, ‘E-Banking’, Skylark Publications, New Delhi,2007.
25. Sugan C. Jain, ‘E-Banking’, RBSA Publisher, Jaipur,2006.
➢ Thesis :-
1. Problems and Prospects of Credit Card and Debit Card Holders in Nanded
District, Thesis No. 57018.
2. E-Banking Problems and Prospects with Special Reference to Marathwada
Region, Thesis No. 54139.
3. E-Banking in Commercial Banking Industry: A Study with Reference to
Nanded City, Thesis No. 46484.
4. Cybercrime: Case Study of Security Incidents on Internet, Thesis No. 52087.
5. A Study of E-Banking Frauds and Safety Awareness of Users in Nanded City.
➢ Journals:-
1. Internet Banking in India: Issues and prospects, the ICFAI University Press
release, the ICFAI Journal of Bank Management, 2008.
2. K.C. Chakrabharty, “New Paradigms in IT Security in Indian Banks”, RBI
Bulletin, May 2010.
3. Mohammed Sadique Khan and Siba Sankar Mahapatra, “Service quality
evaluation in Internet Banking: an empirical study in India “ Int. J. Indian Culture
and Business Management, 2009.
4. Marzun Jokhi and Delnaz Jokhi, “Dos and Don’ts for Peotecting Your
Banking” Professional Banker, the ICFAI University Press release, 2008.
5. R.K. Uppal, “Internet Based E-Banking Services and Bankers” Perspective in
the Emerging Globalized Era- An Empirical Study Invert is Journal of
Management, 2009.
6. S. Anitha- “Credit Cards: Frauds and Precautions”, the ICFAI University Press
release, Professional Banker, 2008.
7. R.K. Uppal and Rimpi Kaur, “Indian Banking is moving towards a better
tomorrow”, vinimaya, Oct-Dec, 2008.
8. Electronic Payments: Current Offering and Developments, “Professional
Banker, the ICFAI University Press, September 2006.
9. R.K. Uppal, “Customer perception of E-Banking services of Indian Banks:
some survey evidence”, the ICFAI Journal of Management, Feb, 2008.
10. N. Kmakodi and M. Basheer Ahmed Khan:, “Customer Expectation and
Service level in E-Banking ERA: an empirical study”, the ICFAI Journal of
Management, Nov, 2008.
11. Ibid , p 81, Ibid , p 89, Ibid , p 82, and Ibid , p 53
12. Dr. Guruswamy S. “Banking theory law and practice, Chennai micro print
Pvt. Ltd, 2005”, p 340
13. Parameshwaran R. and Natarnjan S. “Indian banking theory” S. Chand Group,
14. Kulkarni, R.V. and Desai, B.L., “knowledge based system in banking sector”,
15. Uppal R.K. “Indian banking and information technology”, New century
publications, 2006, p 90.
16. David Cracknel, Electronic banking for Poor, Panacea, Potential and pitfalls,
17. Ibid, P.80. And P.82. and Ibid , p 91
18. The banking sector has lost a whooping Rs. 5,517 crore due to frauds in the
last four fiscal, economic times, feb2014.
19. IT initiatives in E-Banking and its security aspects’ Professional Banker, the
ICFAI University Press.
20. Internet banking, A Paradigm shift, ‘Professional Banker, the ICFAI
University Press.
➢ Reports:-
1. IAMAI report-online banking 2008.

2. Report of the working group on “Internet Banking”, RBI,2008,2009
3. Report of RBI, 2008, 2009, 2010, 2011, 2012, 2013, 2019, 2020, 2022
4. Report of the committee on “Legal aspects of Bank Frauds”. RBI,2010
5. Report on Internet Frauds, Scam and Crime Statistics data – 2009.
6. The state of Phishing, “A monthly report-May 2009,” complied by Symantec
security response Anti-Fraud team.
7. Report on Internet Security in statistical data-2008 to 2013.
8. Report on SBI, BOM, MGB, BOB and SBH online Banking Frauds and Safety
in the year 2008 to 2013.
9. Report on all Internet Banking sector Customers using services, 2012 to 2022.
10. Report on ICFAI institutions, in the year 2008 to 2013.
11. Reports and Guidelines on Information security, Electronic Banking,
Technology risk management and cyber frauds, Reserve Bank of India
Department of Banking Supervision, Central Office, Mumbai, P.N. 10.
12. E-banking Benefits and Challenges graph. P.N.7
➢ Websites:-
1. www.rbi.org.in
2. http://www.onlinesbi.in,
3. www.sbh.in, www.bob.in, www.mgb.in, www.bom.in, www.sbi.in
4. www.nwcmc.gov.in or www.nandedcity.php
5. www.nandeddist.com, www.nandedmap.com
6. http://www.bankofmaharashtra.in/internet_banking.asp
7. https://www.mahaconnect.in/jsp/index.html
8. www.marketresearch.com, or www.merinews.com
9. www.banknetindia.com or www.ijarcsse.com
10. www.antiphishing.org or www.accman.in
11. http://www.realinformationsecurity.com/general/rbi-seeks-data-from-banks-
onfrauds.html/-
12. http://timesofindia.indiatimes.com/articleshow/869992.cms.
13. http://www.bobibanking.com/online_security-tips1.htm.
14. www.antiphishing.org-Anti phishing working group report-Nov 07
15. http:/www.mouthshut.com/review.UTI_Bank-116456-l.html
16. http:/www.spamrazor.net/news.htm
17.http:/www.mwti.net/products.pdfs/theitshield_ICICI%20Bank%20%phishin
g%20Sca m%20Targets%20Customers%20in%India.pdf.
18. http:/www.realinformationsecurity.com/general/rbi-seeks-data-from-banks-
onfrauds.html(2007,March)
19. http:/www.webscense.com/securitylab/alert/alert.php?AltertID-702
20. E-Banking frauds and Safety search RBI web site.
➢ NEWS:-
1. “Noida Police crack internet banking fraud,” Economic Times, Oct-2012.

2. India hit by Rs 3 cr. Net telephony fraud; cyber thief nabbed. New Delhi,
Financial express, Aug-2014.
3. Parishit luthra/CNN-IBN, “cybercrime: Five Hackers arrested for net banking
fraud”, New Delhi, Oct-2016.
4. Banks lose nearly rs 6.6 cr to internet frauds, New Delhi, Economic times, Feb-
2018.
5. Net Banking Frauds youth held in Mumbai Express news service, Feb-2020.
6. Economic Times, year 2012 to 2022.
7. Times of India, year 2019 to 2022.

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A Project On

University of Mumbai for partial completion of the degree of

MR. ARTHESH GOKHALE

Under the Guidance of

Co-ordinator Guiding Teacher

External Examiner Internal

Principal College Seal

ARTHESH DHANESH GOKHALE

I would like to acknowledge the following as being idealistic channels and

I would also like to express my sincere gratitude towards my project guide

I would like to thank my College Library for having me provided various

Chapter Title Page No.

1.2. DEFINITION OF E-BANKING:-

1. According to R.K. Uppal, “Electronic Banking is electronically handling of all

1.3. BENEFITS OF E- BANKING:-

1.4. FUNCTIONS OF E-BANKING:-

1.5. DEVICES OPERATED IN E-BANKING:-

1. ATM (Automated Teller Machine):- ATM machines are computer-controlled

2. PDAS (Personal Digital Assistance):- It is small hand held device commonly

1.7. AN INTRODUCTION TO E-BANKING FRAUDS AND SAFETY:-

1.7.1. DEFINITIONS OF “FRAUD”:-

2. “Fraud is an Act or Omission which is intended to cause wrongful gain to one

1.7.2. E-BANKING FRAUDS:-

Internet Banking Fraud is a “Fraud of robbery devoted using online technology

1.7.3. DIFFERENT TYPES OF FRAUDS:-

1. Internet Marketing and Retail Fraud:-

This is a fast-growing area of internet fraud perpetrate by fraudulent internet

In cases involving fake or worthless goods, many are health products,

2. Online automotive fraud:-

In another type of fraud, a fraudster contacts the seller of an automobile,

These frauds are usually carried out by using following Modusoperand,

A. From internet sources, e-mail, user ID of the customer is collected.

The vital information of customer’s Credit or Debit card is collected by

Many times the customers receive e-mail or message informing that, if

8. Card Not Present:-

10. Cyber squatting:-

11. SMS spoofing:-

12. Money laundering risks:-

13. International Boundary risk:-

Internet banking is totally based on information technology so it can be operate from

14. Cyber fraud:-

1.7.4. INTERNET BANKING AND RELATED FRAUDS:-

• Triangulation/site cloning:- Customers get tempt to fraudulent fake websites

• Hacking:- Hackers/fraudsters obtain unauthorized access to the card management

• Online fraud:- Card information is stolen at the time of an online transaction.

• Use of Social Media:- A thief can convince an employee that he is hypothetical to

1.7.5. E-BANKING SAFETY:-

Information and the knowledge based on it has progressively more becoming

To achieve effective information safety measures governance, bank

The advent of new inventions in Information and Technology has made

1.7.6. BASIC PRINCIPLES OF INFORMATION SECURITY:-

1. Confidentiality:- Confidentiality is the phrase used to prevent the revelation of

2. Integrity:- In information security, integrity means that data cannot be customized

4. Authenticity:- In computing, E-Business and information security it is compulsory

5. Non-repudiation:- In law, non-repudiation implies one's purpose to fulfill one’s

6. Identification:- Identification is the procedure by which a subject professes an

7. Authorization:- Once a subject is authenticated, access must be authorized. The

8. Accountability and audit ability:- An organization’s safety measures policy can

9. Information Security Governance:- Information security governance consists of