If you have a bank account, then this news is very important for you. Now a small mistake or negligence can get your bank account frozen directly. The country's banks now want to get the right to freeze the account without delay on suspicious transactions or fake accounts. This step is being taken to curb banking fraud and cyber thugs. In such a situation, common account holders now need to be more vigilant because a mistake can get your money stuck. So let's know why the seriousness of this threat is increasing, what changes does the banking system want and what are the necessary vigilance measures for you.
If you have a bank account, then now you need to be more vigilant than before. Your account can be frozen directly on a small mistake or suspicious transaction. The country's banks want the right to seize accounts without delay to prevent illegal transactions so that immediate action can be taken against fraudsters.
Why did banks ask for the right to seize accounts?
So far, banks can only take action on internal reasons such as KYC deficiencies, document errors, or suspicious activity. But to completely seize or freeze an account, they have to take permission from the court or law enforcement agency (LEA). Banks say that this process is a time-waster and cyber criminals and fake account holders take advantage of this. Therefore, banks have demanded direct authority so that the account can be frozen immediately as soon as a suspicious transaction occurs.
How is fraud happening through fake accounts?
Fake accounts are mostly used in banking frauds. These accounts are opened using voter ID and Form 60 instead of PAN card and are used for illegal transactions. Once the account is seized, another account is immediately opened in a new name. This is why banks now want to use Election Commission data to verify accounts with voter ID.
Technology will change the game of the system
The working group of the Indian Banks Association (IBA) has suggested that AI (Artificial Intelligence) and ML (Machine Learning) be integrated with the transaction monitoring system. This will automatically alert the system as to which transaction is suspicious and immediate action can be taken on it. Along with this, they also said that bank employees should be trained in new technologies and cooperation and communication should be increased between all stakeholders – i.e. banks, agencies and customers.
Thousands of accounts are seized every year, then why is there a new demand?
However, thousands of suspicious accounts are frozen by banks every year. But fraudsters have become so active that they create new IDs and immediately open another account. Therefore, now banks feel that just freezing the accounts will not work, but the system will have to be strengthened further.
Banks believe that if they get the power to freeze accounts immediately, they can prevent fraud at the initial stage and keep the general public safe.
Will it affect you as well?
If you click on any suspicious or unknown link, transfer money at the behest of a stranger or share your OTP, your account may fall under the category of suspicious transactions . And if banks get this new power, then your account can be frozen without any notice.
Therefore, it is important that you exercise utmost caution in banking transactions, open an account with the correct documents and avoid any transactions involving unknown persons.
Follow these measures to protect yourself
- Keep your mobile number and email updated with the bank
- Do not ignore the alerts sent by the bank
- Use only official and authentic apps and websites
- Make sure you link your PAN card
- Immediately report suspicious calls or messages to the bank and cyber cell
PC:Punjab Kesari
