Credit check; May be required!

When you think of a credit check, chances are your thoughts jump to loan transactions. After all, the point of a credit history is to provide context for your past credit transactions as a way to predict the default risk you pose to a current lender. The reality, though, is that your credit profile is used for other financial transactions.

Just because you aren’t borrowing money, it doesn’t mean that your credit information isn’t being used to make judgments about your level of financial responsibility. Here are five non-loan financial transactions that may require a credit check:

1. Cell phone service

Many carriers want to make sure you’re going to pay your bill as agreed. Others worry about letting you walk out of the store with a phone that will be paid for in the service contract.

Poor credit means that you may be limited in account choices. You may only have access to an account with strict data usage and calling limits if you have a poor score. Additionally, if you want to upgrade your phone later, your carrier might make you pay for the upgraded phone up front, rather than letting you make installment payments.

Some Internet service providers and cable/satellite TV companies also run credit checks before opening accounts for new customers. If you expect to access entertainment in this way, you need to be aware of the possibility that your credit history will be accessed and used to judge you.
                                   

2. Insurance premiums

Many auto insurers review credit scores when setting rates. Poor scores are highly correlated with future claims insurance. You may pay more for car insurance if you have a poor score.

Some states ban insurers from using credit scores to make these decisions, but there is still the chance that you could pay thousands of rupees extra a year on your auto policy as a result of your credit situation. Some homeowners insurance rates are set based, in part, on the results of a credit check.

3. Renting an apartment or a home

Even though you aren’t borrowing when you rent an apartment or a home, the reality is that you are still expected to make regular payments. For some landlords, a poor credit rating could be a red flag that you will be difficult to collect from.

You might also need to get a cosigner for your lease if your situation isn’t up to scratch. In some cases, you will be approved to move into the rental, but you might need to make a larger security deposit. This can be difficult if you are short on ready cash.

4. Applying for a job

Even your ability to earn an income can be impacted by your credit history. Employers aren’t supposed to check your credit score, but that doesn’t mean that some won’t look at your credit report to identify possible risks. This occurs most frequently for jobs where people handle money or other valuable items. Someone with a bad credit report might be considered a risk of embezzlement or bribes. You may lose a good job opportunity if you have poor credit.

5. Finding true love

Finding the right life partner is supposed to be about love and compatibility. It’s supposed to be romantic. However, there are also money components involved with identifying a life partner. Many single people now exchange credit reports and scores before becoming serious in a relationship.

Even if your partner is willing to overlook your past financial indiscretions, he or she might be unwilling to combine finances with you until you get your credit score in shape. Even though marriage doesn’t have to mean that you share a credit profile, many partners are wary that your situation could affect them.

In the end, you need to be aware of the fact that a credit check isn’t just for loan-related financial transactions. Attempts to include other information in credit reports and scores are under way, since utility payments and rental payments can also be indicators of your level of financial responsibility. However, for now your credit profile is still one of the main ways that others — even non-lenders — decide whether or not you are an acceptable risk.

Source: Secondary

Know the variance between credit limit and available credit!

The account balance of a debt plays a prominent key to which the difference between the credit and credit limit is closely tied to. Credit limit is the total amount of credit available to a borrower, including any amount already borrowed.  A borrower’s credit limit may be raised after he or she exhibits timely and full repayments. However, having a high credit limit and multiple lines of credit may hurt a person’s overall credit rating. In these cases, new potential lenders can see that the applicant has access to a large amount of debt, which may lower the chances that this person will be able to repay his or her debts in the future. As a result, new potential lenders might be less likely to offer an additional source of debt. Available credit can be a key factor in a credit score, along with amounts outstanding from various lenders. A reasonable amount of available credit proves that the customer has successfully obtained credit lines in the past, and has the discipline not to use all credit available to him or her. If you try to spend more than your available credit, your transaction will be declined, unless you’ve opted-in to have over-the-limit transactions processed.

Many credit card companies allow borrowers to increase account balances just beyond credit limits, provided that borrowers agree to this in writing. This sometimes is a result of charges and sometimes a result of interest and fees. Most credit card companies charge stiff penalties for accounts with balances above the credit limit, again, provided the borrower agrees to this in writing. In times of need, consumers may be tempted to sign any document that gives them access to needed cash.

The amount is mandated to the credit card companies which they are allowed to charge for credit card accounts over the credit limit. The charge applied may not exceed the amount the account is over the limit. Individuals who have agreed to accept fees for exceeding credit limits have the right to change this at any time by notifying the lender in writing. This does not apply to transactions made before opting out of over-credit-limit fees. Also, the lender is more likely to refuse transactions that take an account over the credit limit after a borrower has opted out.

Visit: www.cibilconsultants.com
Source: Secondary

Surprising things that affect your Cibil credit score

Your Cibil credit score evaluates your credit worthiness. While you might be paying your bills on times, it is not the only factor that affects your credit score. Here are some surprising things that could alter your credit report.

A lot if written about how one can boost the Cibil score and clean up your Cibil report but there are some surprising things that can hurt your Cibil score. Here are some things which will make you sit up and think.

Cutting down the number of your credit cards:  If you thought applying for a credit card is what brings down you score, you are right but you cutting down on the number of cards that you hold also bring it down. While applying for a card leads to a hard enquiry, cancelling some credit cards mean your total credit limit goes down and your credit utilisation moves up. 

Requesting for an increase in credit limit:  You may think that the credit limit that the bank has allotted on your credit card is low and hence request for a higher limit. When you make such a request, the bank will ask CIBIL for your report to assess your credit standing. This means it is a 'hard' enquiry which will brings down your Cibil credit score. So until you really need it, do not request for a higher limit.

Being super cautious about using your credit card:  Many of us think that credit card usage might lead to excessive spending and bad credit habits. The fact remains that without spending and repayment history, the credit bureau is unable to rate your credit standing. Lack of credit transactions or no transaction will make your credit file inactive on the Bureau; it brings down your credit score. So it best to make regular small transactions, say grocery purchases, and pay the credit card on time.

Not checking your Cibil report for mistakes:  It is always good practice to check your credit report for any errors every 6 months or so. Often there is mis-reporting or delayed reporting by banks, which may result in faulty information on your Cibil report and a reduced score. For instance, you may have had a delayed payment in the past which shows up in your credit report but the last couple of years all payments have been on time. If you can procure a document from your lender that there is no outstanding payment and all EMIs have been paid on time your Cibil report can be rectified.

Having no loans:  Most of us have credit cards but not everyone has a loan account. Your Cibil score benefits from a good credit mix both revolving credits (credit cards), as well as non-revolving or EMI based credit (a home loan). It shows your diversity in handling different types of credit. 

Source-secondary

Danger: Credit card fraud! Protect yourself.

Credit Card Fraud is a harsh reality of digital age. Though in India, Reserve Bank of India (RBI) has done a commendable job to avoid credit card fraud. Some of the path breaking steps taken by RBI are:

1. Two level authentication for online transactions. 1st level when you enter Credit Card details & CVV. 2nd level authentication is implementation of 3D Secure Code (Verified by VISA and Mastercard SecureCode)

2. Issuance of EMV Chip & PIN enabled Credit Cards

3. Option to select / set limit for International usage

4. Data Security standards for POS Terminals

5. SMS Alert to customer’s registered mobile no for every Credit Card transaction

6. OTP for IVR based transactions

Awesome, Isn’t it. In India, the probability of Credit Card fraud is negligible except due to negligence of user. An example of negligence is that user lost the wallet with Credit Card and in the wallet PIN of Credit Card was written on piece of paper.

Unfortunately, International scenario is not as secured as in India. Most of the credit card frauds are executed offshore i.e. Credit Card information is stolen in India and then the Credit Card is used outside India. Best part is for international transactions, you only need Credit Card No. and 3 digit CVV No. Unlike India, there is no multi layer security authentication/verification. Its quite easy to carry out credit card fraud outside India. RBI or any law enforcement agency does not have any jurisdiction outside India. Last year, person's credit card was used to make international transactions on dubious e-commerce website of African country. Now he has lost all the hopes to recover the amount. The double whammy for him was that he had to pay the amount else his CIBIL Score would have been impacted adversely. Moreover with stricter norms in India, no one can escape under the shield of Credit Card Fraud. The only point of consolation is that if the user prove his innocence by proving that credit card fraud happened due to bank or its employees ignorance/fault/collusion. In this case, Bank will compensate for the loss due to credit card fraud.

 11 most important tips which can help you to avoid Credit Card fraud

Mask CVV No

Immediately after receiving the Credit Card, Remember CVV No and Mask/Scratch the same. You can mask with Permanent marker and than apply whitener coating over it.

Never Store Credit Card information online

Storing Credit Card Information online is most dangerous practice. Its an open invitation to credit card fraud. Recently while booking movie ticket on BookMyShow, the merchant offered me to save the Credit Card Details for next transaction. These e-commerce sites claim highest data security standards but recently Ebay’s 145 mn accounts were compromised so its safe to conclude that “WEB is not a safe place”.

A word of caution: On some e-commerce sites, the option to save Credit Card information for future transactions is by default selected. If you overlooked than without your knowledge, the information will be captured by merchant. The user has to very careful while making online transactions.

Avoid International Transactions, Avoid Credit Card Fraud

It is advisable not to use your Credit Card abroad and even avoid using Credit Card on International E-Commerce websites. If you are 100% sure about the merchant’s credibility & reputation than you may consider. Offline transactions are also risky as Credit Card Skimming is very common at POS terminals in countries like Thailand, Indonesia, African Countries etc

Credit Card Transactions at Petrol Pump

According to recent study, Credit Card Transaction at Petrol Pump is most unsafe. It is one of the favorite location for credit card skimming thus credit card fraud. We tend to handover Credit Card to pump attendant and Credit Card is unattended for 10-15 mins. The probability of Credit Card Skimming is high at Petrol Pumps specially the petrol pumps on highways & remote locations. Crux is that Credit Card should not be unattended and all Credit Card transactions should be in front of you. Secondly, don’t use Credit Card at Petrol Pumps on Highways and Remote locations to avoid credit card fraud.

URL in Browser

Before making any online payment, Please check the URL in Web Browser. Normally the URL starts with “http” whereas secured URL’s  have extra “s” i.e. secured URL will start with “https”. In-fact Google Chrome will show “https” in Green color if the URL is secured and site name will also appear in green.

Reputed SSL Seals & Trust Seals

As a thumb rule, you should make all online transactions only on websites with reputed SSL/Trust seals

SSL Seals: Norton Security Seal, Thawte, Trustwave, COMODO & GeoTrust

Trust Seals:  McAfee Secure, TRUSTe & BBB Accredited.

SSL Seals are more reliable & secure as they suggest Technical Security of Payment whereas Trust Seals are only reputation certification. To avoid credit card fraud rely on SSL Seals.

Use of Credit Card on Public Computer

 Public computers are most vulnerable for Credit Card Fraud. Never ever use Credit Card in cyber cafe, friends place or even in office. Always trust your own Desktop / Laptop for online transactions. Use reputed Anti-Virus, Anti-Malware & Firewall to avoid any data theft.

Credit Card Photocopy as Id Proof / Authorization letter

A Credit Card with Photograph is also accepted as valid Id proof e.g. for bank account opening etc. In case, you booked air ticket for your friend or family member, an authorization letter with xerox of credit card is required. We tend to give xerox of both front and back side of credit card. Some unaware users don’t even hide CVV on back side thus vulnerable to credit card fraud.  Please note that it is not necessary to give xerox of back side of credit card. Only front side is sufficient.

Fraudulent Calls

To avoid credit card fraud never ever trust incoming calls. If you receive any such call than call back bank’s helpline to check the truth.

Credit Card payment through Mobile / Mobile Apps

These days you might have observed that lot many merchants are promoting online mobile apps like RedBus, Flipkart, BookMyShow etc. These apps allow you to make payment over mobile app through Credit Card. Personally, it is not suggested to make any credit card payment through Mobile applications to avoid credit card fraud. In a recent article published in Business Standard, a survey done by Japanese security firm Trend Micro revealed that  39 Payment Gateways, 15 Bank related mobile Apps and other Mobile apps, Shopping apps, Social Networking Apps and Health Care apps used by Indian users are vulnerable to credit card fraud.

Prevention is better than Cure

If the situation demands and you carried out any risky/vulnerable transaction than immediately cancel your Credit Card and apply for replacement of credit card. In short, if you foresee or anticipate any Credit Card fraud than apply for replacement of credit card.
Visit- www.cibilconsultants.com
Source: Secondary

Select right credit card this way

It is very important to select the right credit based on your requirement else rather giving benefit, it will eat into your savings from credit card.

1. Say No to Co-Branded Credit Cards: Over last few years, Credit Card Market is flooded with C0-Branded Credit Cards. Banks launch these credit cards in association with a particular brand like ICICI Big bazaar Credit Card, Jet Airways ICICI Bank Credit Card, Standard Chartered Yatra Credit Card,  HSBC MakeMyTrip Credit Card, SBI Railway Card etc.

The disadvantage of C0-Branded Credit Card is that all the benefits of credit card is associated with partnered brand e.g. in ICICI Bank Big Bazaar credit, you will get 6 reward point for Rs 100/= spent in Big Bazaar but for Non Big Bazaar purchase, you will get only 1 Reward point for Rs 200 spent. Therefore, these cards are most beneficial for Big Bazaar becoz they are buying customer’s loyalty through this card as user of this card will try to make almost all the purchases through Big Bazaar.

Banks gain becoz partnered brand promote co-branded card heavily through its channel and bank gets more credit card customers without much efforts. Only looser in this chain is user of Co-Branded Credit Card. You can opt for such cards, if you have very very high level of engagement with particular brand else they are waste.

2. Cash Back Cards: Cash back cards are still in a very nascent stage in India because of 2 reasons:

(a) Annual/Renewal fees

(b) If’s & buts attached with the cash back offer e.g. In a XYZ Credit Card, Minimum amount spend should be Rs 1000/transaction to be eligible for 5% cash back or in a PQR Gold Card, Minimum spend on Dining and Movies should be more than Rs 5000 within billing cycle to enjoy 10% cash back & cash back is applicable only for 5 transactions (Dining + Movie) upto maximum of Rs 600/= in a billing cycle.

It is very important to understand your spending pattern before applying for cash back credit.

3. VISA/Master Card Payment Systems: All credit cards carry a logo of VISA, Master Card, American Express, Maestro etc etc..Many people gets confuse that credit card is issued by VISA or Master Card..Fact of the matter is that VISA or Master Card don’t issue any credit card but they are payment systems, which process payment between Merchant Bank and the bank, which issue credit card. In other words they are dependent on banks to issue credit / debit cards by using their payment system.

VISA and Master Card are 2 biggest payment systems in world & you should own atleast 1 card each of VISA and Master Card because:

(a) VISA / Master Card always run offers for their customers to increase usage on their payment system e.g. VISA Blockbuster weekend offer of Buy 1 get 1 Free on Bookmyshow or Get discount from 5% to 10% on Apollo Clinic, using Credit Card with Master Card Logo. Before making any purchase, its better to check for offers as Rupee Saved is Rupee earned.

(b) Outside India, you will find many merchants excepting only VISA or Master card so if u travel abroad then you should own 1 card each of both the payment systems to avoid any inconvenience.

4. Reward Points: Most critical point to decide credit card. Reward point is nothing but an incentive to use your credit card or you can say its indirect discount on your purchase. Generally each Reward Point carry a value between 25 paise to 50 paise. It is very easy to find out the value of Reward Point. Just check reward catalogue from bank’s site and find out the Market Value of any item in Reward catalogue and how many points required to redeem this item e.g. if a Philips toaster cost Rs 1500 in market & you need 4300 reward points to redeem then value of each reward point is 0.34 paise.

Some banks give higher value per reward point to premium customer and vice versa.

5. Flexibility to Change Billing Date: It is very important to know the payment date, which depend on Billing Date. It depend on spending pattern & your salary cycle to arrive at convenient billing date. It is advisable to opt for credit card with a bank, which is flexible in terms of changing Billing date.

6. Interest Free Easy EMI: HDFC bank, ICICI Bank and Citibank are pioneer in this. If u make big purchases like Electronic Goods, Travel etc at regular intervals then its a wise decision to opt for Interest Free Easy EMI option of 3, 6 & 9 months…These days when credit comes at a very high interest rate (Interest Rate on Personal Loan is 16%)…Paying through Interest Free Easy EMI is a big savings even if u can pay lump sum, it is advisable to opt for Easy EMI as you can get interest on the amount. Some of the offers currently live are, you can convert all purchases through HDFC Bank Credit Card at LG Best Shoppe into 3, 6 or 9 months Easy EMI or you can convert all ticket bookings through makemytrip into 3, 6 or 9 months Interest Free Easy EMI by using ICICI, HDFC or Citibank credit card

7. Ease of Payment: Before applying for credit card just check the payment options. Though most banks provide option to pay through net banking or NEFT but for many people, its not a convenient mode to pay..Just check whether your convenient mode of payment is available for credit card payment. If your convenient mode is cheque drop then check whether the ATM of bank is located near your home or office.

Though there is no set rule to select the Right Credit but it depend on your requirement and spending pattern. One should not have more than 2-3 cards to maintain good CIBIL score. Out of 2 credit cards, one should be of largest issuers and second one should be Cash back credit card. Maximum transactions should be on Cash Back Credit Card to get maximum benefits. Also one of the card should be on VISA payment system and another on Master Card. Hope u liked the tips to select the right credit card.
Visit- www.cibilconsultants.com
Source: Secondary

Use Credit Cards Smartly!

A judicious credit card spending help in substantial saving over a period of time. In this post we will discuss, how we can increase our savings by juggling between 2 credit cards.

Please note that if you have more than 2-3 credit cards then it shows credit Hungary Behavior which can impact your CIBIL credit score adversely so it is advisable to carry only 2 or max 3 credit cards.

Billing date of a person's 1st Credit Card is 15th of Month (Payment date is 5th of next month) and billing date of 2nd Card  was 25th (Payment date was 15th of next month). After few billing cycles he requested second bank to change my billing date to 30th (Payment date changed to 20th of next month) and they obliged happily.  In past, he requested 1st bank to change his billing date multiple times but despite being super premium customer they refused. They told him that billing date once fixed cannot be changed. Small players are very flexible in their approach, which he realized late.

For his own benefit, he decided to divided my business between 2 credit cards to get maximum benefit & to save maximum during recession. All his purchases between 16th and 30th of the month are through 1st bank i.e. he use 1st credit card for 15 days from the billing date of 1st bank (15th of Month) & all the purchases from 1st of month to 15th of month are through 2nd credit card i.e. 15 days from the billing date of 2nd Credit Card (30th of Previous Month). In short, use the credit card only for 1st 15 days from the billing date and ensure that billing date of 2 credit cards are approx 15 days apart. 

Now you must be wondering, how he is going to gain out of it and answer is very simple that by doing this he is getting an extra 15 days credit for all my purchases every month. In these tough times of recession and high interest rate 15 days extra credit means lot of savings.

Lets take 2 examples to understand better

Example 1:

Scenario A:  Assume he made a purchase on 5th of the month and he have only 1st credit card. For this purchase his billing date is 15th of same month and he need to pay for this transaction by 5th of next month. In short he will get credit for 30 days on this transaction.

Scenario B: Now if pay for this transaction by 2nd credit card then his Billing date is 30th of same month and he need to pay for this transaction by 20th of next month. In this scenario he will get credit for 45 days.

Therefore, in Scenario A credit period is 30 days and in Scenario B credit period is 45 days i.e. extra credit period of 15 days, simply by juggling between 2 cards

Example 2:

Scenario A:  Assume he made a purchase on 25th of month and he have only 2nd credit card. For this purchase his billing date is 30th of same month and he need to pay for this transaction by 20th of next month. In short, he got credit for 25 days on this transaction.

Scenario B: Now if pay for this transaction by 1st credit card then his Billing date is 15th of next month and he need to pay for this transaction by 5th of next to next month. In this scenario he got credit for 40 days.

Therefore in Scenario A credit period is 25 days and in Scenario B credit period is 40 days i.e. extra credit period of 15 days, again simply by juggling between 2 cards.

From Example 1 and Example 2, it is clear that if we have 2 credit cards with billing dates 15 days apart then we can simply time the swiping of each credit card to get maximum credit period for each transaction. If we assume revolving credit of 50k every month for 15 days & extra credit of 15 days on this amount then annually you can save Rs 2250 assuming 9% interest on bank FD.

Credit cards, if used judiciously can help to save a lot but only word of caution is that credit card should be used only for necessary purchases not for impulse buying else it can land us in deep mess of debts.

Disclaimer: All the examples used in above post are for illustration purpose and to simplify the subject.
Visit- www.cibilconsultants.com
Source: Secondary

Online banking frauds can come to an end by new software

Scientists have developed a new software to prevent malware from sending spam emails and instant messages while blocking unauthorised money transfers.

Researchers at Georgia Tech have created a prototype software, Gyrus, that takes extra steps to prevent malware from sending spam emails and instant messages, and blocking unauthorised commands such as money transfers.

Current protection programmes might recognise the original user's intent to send email, transfer money or engage in other transactions but cannot verify the specifics such as email contents or amount of money.

Without context, it is impossible to properly verify the user's full intent, regardless of whether the software is protecting a financial transfer, an industrial control system or a wide range of other user-driven applications.

Gyrus is a transparent layer on top of the window of an application. The user experience with the application will be exactly the same as when Gyrus is not installed or activated.

Of course, if Gyrus detects that user-intended data has tampered with, it will block the traffic and also notify the user.

The research is based on the observation that for most text-based applications, the user's intent will be displayed entirely on screen, as text, and the user will make modifications if what is on screen is not what he or she wants.

Users help Gyrus do its job by establishing pre-defined rules that help the software determine whether commands - authorised or not - fit with established user intentions.

The idea of defining correct behaviour of an application by capturing user intent is not entirely new, but previous attempts in this space use an overly simplistic model of the user's behaviour.

For example, they might infer a user's intent based on a single mouse click without capturing any associated context so the attackers can easily disguise attacks as a benign behaviour.

           

Instead, Gyrus captures richer semantics including both user actions and text contents, along with applications semantics, to make the system send only user-intended network traffic. Gyrus indirectly but correctly determines user intent from the screen that is displayed to the user.

There are two key components to Gyrus' approach. First, it captures the user's intent and interactions with an application. Second, it verifies that the resulting output can be mapped back to the user's intention. As a result, the application ensures accurate transactions even in the presence of malware.

To learn about Identity theft, visit- www.cibilconsultants.com
Source: Secondary

SIM card block? It could be online fraud!

Online banking cheating cases on the rise in city, warn experts

A 35-year-old software engineer working with an information technology (IT) company in Chinchwad got an SMS that her ICICI Bank debit card had been used to make purchases worth Rs93,000. She almost fainted because she had never made any such transaction. But her nightmare did not end there. A short while later she received another SMS saying her debit card had been used to make another purchases of Rs 5,000.

The cases of online banking and mobile transactions are on the rise in the city. The officers of the cyber crime cell (CCC) of Pune police claimed people are not aware about fraudsters and their tricks. As a result, the cases have increased in the city.

The CCC officers said that people do not have adequate knowledge of safety and security measures for online transactions. They said as many as 60 such cases are being registered at different police stations in the city.

Fraudsters are using the technique of blocking the SIM card of the victims’ cellphones to ensure they don’t get alerts from the bank. Senior police inspector Sarjerao Babar of CCC told dna, “The present modus operandi of the fraudsters is to block the SIM card with the help of the telecom company employees. Thereafter, they send an application to the telecom company for a new SIM card on the victim’s name. Once the fraudsters get the new SIM card, they get the bank alerts.”

On that basis, fraudsters submit fake know your customer (KYC) forms on the name of the victim and open new accounts in their name and make transactions. “Thereafter, the fraudsters immediately transfer money to their different accounts,” Babar said.

Analysing the causes for the rise in number of cyber crimes in Pune, Babar said, “As more people use the Internet and cellphones for banking, the number of people falling prey to cyber crimes is increasing. People carrying out bank transactions using the Internet are falling prey to economic offenders on the prowl.”

Deputy commissioner of police (cyber) Sanjay Shinde told dna, “People do not have adequate knowledge of safety and security measures to be taken while carrying out online transactions. We have been trying to spread awareness by giving safety tips in dos and dont’s format. However, many Internet users do not pay enough attention to our advice. In recent cases, we have observed that if the SIM card was blocked, the victims could have contacted the nearest telecom office and get a confirmation on it, but they did not. As a result, the fraud took place.”

                       
Shinde said they had asked bank authorities to create awareness among customers about the latest security measures. “But the banks are slowly proactive in security aspects related to mobile banking,” Shinde said.

Besides, a major chunk of cyber crimes pertain to credit /debit card frauds.

Banks authorities asked to step on it

Deputy commissioner of police (cyber) Sanjay Shinde claimed that they had asked bank authorities to create awareness among customers about the latest security measures and to be vigilant during submission of KYC forms to weed out fake accounts. “But the banks are slow in responding to security aspects related to mobile banking,” he said.

Online shopping tips:

1.  Shop with merchants you know and trust
2.  Check whether the shopping website is secure
3.  Be cautious of unsolicited phone calls or emails from merchants
4.  Read merchant’s refund and exchange policies before making any purchase
5.  Do not share your password
6.  Always print and keep the order confirmation documents
7.  Read the privacy statement
8.  Never enter your personal information on a pop-up screen.

Internet Banking tips:

1.  Keep your passwords/PIN codes safe and memorize them
2.  Check if the online banking website is secure
3.  Log out immediately after you complete your online transaction
4.  Do not copy or click on any links that are not from a known source
5.  Do not respond to emails asking for personal or banking related information
6.  Read privacy and policy statements to ensure that no unauthorized transaction has taken place
7.  Check your account statements regularly

To learn about Identity Theft, visit- www.cibilconsultants.com

Source: Secondary

Credit Check Please!

When you think of a credit check, chances are your thoughts jump to loan transactions. After all, the point of a credit history is to provide context for your past credit transactions as a way to predict the default risk you pose to a current lender. The reality, though, is that your credit profile is used for other financial transactions.
Just because you aren’t borrowing money, it doesn’t mean that your credit information isn’t being used to make judgments about your level of financial responsibility. Here are five non-loan financial transactions that may require a credit check:
                                  
                           

1. Cell phone service

A person recently signed up for new cell phone service. Before the company would open an account for him, they ran a credit check. Many carriers want to make sure you’re going to pay your bill as agreed. Others worry about letting you walk out of the store with a phone that will be paid for in the service contract.
Poor credit means that you may be limited in account choices. “You may only have access to an account with strict data usage and calling limits if you have a poor score,” Additionally, if you want to upgrade your phone later, your carrier might make you pay for the upgraded phone up front, rather than letting you make installment payments.
Some Internet service providers and cable/satellite TV companies also run credit checks before opening accounts for new customers. If you expect to access entertainment in this way, you need to be aware of the possibility that your credit history will be accessed and used to judge you.

2. Insurance premiums

“Many auto insurers review credit scores when setting rates,”  “Poor scores are highly correlated with future claims insurance. You may pay more for car insurance if you have a poor score.”
Some states ban insurers from using credit scores to make these decisions, but there is still the chance that you could pay hundreds of extra dollars a year on your auto policy as a result of your credit situation. Some homeowners insurance rates are set based, in part, on the results of a credit check.

3. Renting an apartment or a home

Even though you aren’t borrowing when you rent an apartment or a home, the reality is that you are still expected to make regular payments. For some landlords, a poor credit rating could be a red flag that you will be difficult to collect from. You might be turned down for some housing situations if you have a poor score. 
You might also need to get a cosigner for your lease if your situation isn’t up to scratch. In some cases, you will be approved to move into the rental, but you might need to make a larger security deposit. This can be difficult if you are short on ready cash.

4. Applying for a job

Even your ability to earn an income can be impacted by your credit history. Employers aren’t supposed to check your credit score, but that doesn’t mean that some won’t look at your credit report to identify possible risks. “This occurs most frequently for jobs where people handle money or other valuable items,” . Someone with a bad credit report might be considered a risk of embezzlement or bribes. “You may lose a good job opportunity if you have poor credit.”

5. Finding true love

Finding the right life partner is supposed to be about love and compatibility. It’s supposed to be romantic. However, there are also money components involved with identifying a life partner. “Many single people now exchange credit reports and scores before becoming serious in a relationship,”. Citing recent surveys that indicate that singles are interested in the financial viability of potential partners.
Even if your partner is willing to overlook your past financial indiscretions, he or she might be unwilling to combine finances with you until you get your credit score in shape. Even though marriage doesn’t have to mean that you share a credit profile, many partners are wary that your situation could affect them.
In the end, you need to be aware of the fact that a credit check isn’t just for loan-related financial transactions. Attempts to include other information in credit reports and scores are under way, since utility payments and rental payments can also be indicators of your level of financial responsibility. However, for now your credit profile is still one of the main ways that others — even non-lenders — decide whether or not you are an acceptable risk.
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Source: Secondary

How to get fit for a home loan?

Know what you can afford
When it comes to Home Loan before thinking of putting up an offer on your property. You shall receive a pre-qualification certificate once the process of pre-qualification is complete, this shall clarify the amount you could lend from the bank. Once you are aware of the amount, you can check the rates and then negotiate the price with possible sellers.

Know your credit scores and credit ratings
This shall give you a fair amount of understanding on what kind of loan you shall qualify for and how you could choose the best bank for yourself for a Home Loan.

Know your Credit History
Every lending amount transaction is tracked by a bank/lender and reported to the Credit bureaus who keep a track of all the lenders on one report which is also called Credit report. This report is a snapshot of all your credit history i.e. all your lending transactions and your repayments on the same. It shows the numbers of dues you have to pay in comparison to the amount you have borrowed.

There are pre-approved mortgages. If you have a good credit rating and your credit history doesn't have any kind of outstanding dues, the lender might give you an upfront pre-approved mortgage. Having a consistent and good credit rating can save a lot of money and time when you need to buy a house.

Source: Secondary

India: Third Most Affected Nation By Online Banking Malware

Growing Internet penetration and rising popularity of online banking have made India a favorite among cyber criminals, who target online financial transactions using malware, security solutions provider Trend Micro said. According to the firm, India ranks third after Japan and the US in the tally of countries most affected by online banking malware during the April-June quarter of 2014.

Japan topped the list with the highest number of online banking malware infections this quarter due to VAWTRAK. In May alone, it saw 13,000 malware infections. The US saw about 5,000 malware infections during the month, followed by India at 3,000 attacks.

"India posed for cyber criminal expansion with an average of 2.5 million malware detection in a given month. Also, 33 per cent more malicious apps were downloaded and network traffic from affected computers continued to rise," TrendLabs Director Myla V Pilao told PTI. TrendLabs is Trend Micro's research and development center. These and many such incidents show that cyber criminals will always adapt to new trends and situations whether in the use of new malware or targeted attacks techniques to continue their attacks, she added. 

She said the severity of attacks has intensified against financial and banking institutions as well as retail outlets globally.

"Total attacks have exposed more than 10 million personal records as of July 2014 and that strongly indicates that organisations need to adopt a more strategic approach to safeguarding digital information," she said. Such incidents often lead  to stealing of consumer's personal information like customer names, passwords, email addresses, home addresses, phone numbers, and date of birth.

These types of personal privacy breaches have affected organisation's sales and earnings, while leaving customers unable to access accounts and dealing with service disruption, Pilao said. "The pace of change in technology sector has never been as rapid as it is now, and as a result we see firms struggling to keep up with the latest developments," she said. Pilao added that it is essential that Indian businesses treat information security as a principal constituent of business  strategy as time and again it has emerged as one of the top countries witnessing cyber crime. 

"The incidents observed during this quarter further establish the need for a more comprehensive approach to security," TrendLabs Director Myla V Pilao said. 

A report by another security solutions firm McAfee said India is the fourth most affected country in Asia, with 786 phishing domains and 1,557 servers hosting suspect content. Also with 145 spamming domains originate from India, the country is the eighth most affected country in the Asia Pacific region.

According to government's cyber security arm Computer Emergency Response Team-India (CERT-In), 62,189 cyber security incidents were reported in the first five months of the current calendar year. Also, till May this year, 9,174 Indian websites were hijacked by various hacker groups spread across the world.

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Source: Secondary

Youth's Appeal: Stay Away From Cyber-crime

AURANGABAD: In an attempt to curb the rising incidents of sexual harassment, the Vishakha Committee at Milind Science College has organised a workshop on Wednesday for sensitizing youth towards gender issues. The programme, was primarily aimed at addressing gender sensitisation and women's development issues.

"To create awareness about the Supreme Court guidelines on Vishakha judgement, the Milind Science College organised a workshop under the aegis of People's Education Society, Mumbai. We are emphasising on sensitization as well as awareness programmes," said Milnd Science College Vishakha Committee co-ordinator Bharati Bhandekar.

While briefing about the amendments to law in case of Juvenile Justice Act, Archana Kotapalle, lecturer at Miling Law College, said, "A draft bill amending the Juvenile Justice Act has been approved by the law ministry recently, which says those above 16 years of age will be considered ?adults' when they are accused of rape or equally severe crimes."

She added, "Gender sensitisation and women's development primarily aims at addressing contemporary socio-economic issues? Education plays a very important role in this, with institutions playing a bigger role."

Kotappalle also guided students on ethical use of internet and how to prevent from being a part of cyber crimes. "Students should stay away from calls for online transactions, sites calling for ATM passwords and also pornography sites. The youngsters need to be cautious in posting pictures and other details on the net, besides using the social media? They should be aware that anything done for fun could translate into a crime."

Bhandekar warned the male students that eve-teasing, clicking pictures of girls on mobile phones and sending messages to them on their cell phones are considered as cyber crimes, which can destroy their future.

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Source: Secondary