Many a times, when we are under time constraints, we get quite irritated when the banking systems or ATMs ask our password twice. It does seem to consume a lot of our precious time but these extra few minutes of authentication is carried out so as to protect you from any kind of fraudulent practices.
The dual-factor authentication process is now generally being followed in order to carry out online transactions. It basically allows customers to enter their credit and debit card details to validate their identity without using the data visible on the card. In doing so, banks and various other payment portals have the benefit of checking whether or not the transaction is genuine, thus, safeguarding both the parties from entering into any kind of unfair practice.
The general routine of carrying out any major banking transaction online requires you to provide details like your log in id followed by the password. Whereas if one uses a dual-factor authentication process, you are required to specify details like the user id, password and your phone number, simultaneously. Since it is considered to be an extended arm for most people, this system is quite convenient and can be implemented in a numerous ways.
When it comes to net banking, the internet protection level against your account should be high. In order to provide such high level security, banks have the option of considering a mobile phone, or a scrambled key chain, or a grid as a another step in order to provide the much needed additional security measure when it comes to net banking. Currently, the practice that is being followed by most banks is that they ask an additional authentication only In scenarios where you as an individual are responsible for transferring money for third party transactions.
For instance, let us consider this scenario. You have a child or grown parents against whom you need to transfer your payment so that they can meet their expenses on a daily basis, using the online portal. So, in such situations registering the common receivers as your beneficiaries, you are spared from the requirement of going through additional authentication. In the unfortunate circumstance where the hacker has managed to hack your account, he will be transferring funds from your account and not from the account of those individuals whom you have listed as beneficiaries.
Online transactions which require details about your credit card or debit card have also stepped up thier online protection. Now, Master Card and Visa holders are required to specify an additional password so that their transaction can be completed. This password, the customer is free to change as and when required depending upon their convenience.
The only information which your hacker prays to receive is the credit card number, CVV Number and the expiry date of the card. With just these information congratulations your account is hacked. In order to increase customer protection RBI has ordered banks to provide for a dual-factor authentication in the light of the increase in the number of fraudulent cases.
What is important to understand is that, it is mandatory for you to keep a check on the number of transactions that you carry out in a month and compare them with the bank’s statements. Once you see any irregularity or mis-publication of facts etc., report immediately to the concerned bank and file a complaint with the policeman of your locality. It will be completely absurd if you borrow a loan to repay that debt for which you are not even responsible for. A loan on your credit card can reduce your chances for opting for more debt in future if you require for any personal use. The reason why it is important because you can avert yourself from getting into a major debt for repayment which might arise if you failed to settle any disputes with your bank or NBFCs if they came into this world.