CHAPTER 1: INTRODUCTION OF THE PROJECT

1.1Concept

Cyber crimes are any illegal activities committed using computer target of the
criminal activity can be either a computer, network operations. Cyber crimes are
genus of crimes, which use computers and networks for criminal activities. The
difference between traditional crimes and cyber crimes is the cyber crimes
can be transnational in nature. Cyber crime is a crime that is committed online
in many areas using e-commerce. A computer can be the target of an offence
when unauthorized access of computer network occurs and on other hand it
affects E-Commerce. Cyber crimes can be of various types such as
Telecommunications Piracy, Electronic Money Laundering and Tax Evasion,
Sales and Investment Fraud, Electronic Fund Transfer Fraud and so on…

The modern contemporary era has replaced these traditional monetary

instruments from a paper and metal based currency to “plastic money” in the
form of credit cards, debit cards, etc. This has resulted in the increasing use of
ATM all over the world. The use of ATM is not only safe but is also
convenient. This safety and convenience, unfortunately, has an evil side as well
that do not originate from the use of plastic money rather by the misuse of the
same. This evil side is reflected in the form of “ATM frauds” that is a global
problem. Internet commerce has grown exponentially during the past few years
and is still growing. But unfortunately the growth is not on the expected lines
because the credit card fraud which has become common has retarded the e-
commerce growth. Credit card fraud has become regular on internet which not
only affects card holders but also online merchants. Credit card fraud can be
done by taking over the account, skimming or if the card is stolen.
Certain preventive measures can be taken to becoming a credit card victim.

The term "Internet fraud" refers generally to any type of fraud scheme that uses
one or more components of the Internet - such as chat rooms, e-mail, message
boards, or Web sites - to present fraudulent solicitations to prospective victims,
to conduct fraudulent transactions, or to transmit the proceeds of fraud to
financial institutions or to other connected with the scheme. Some forms of
Internet Fraud, include: spam, scams, spyware, identity theft, internet banking
fraud.

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“The modern thief can steal more with a computer than with a gun. Tomorrow’s
terrorist may be able to do more damage with a key board than with a bomb.”

1.2Objective of the study

1. To understand the various types of cyber crime in banking.
2. To identify the various reasons behind the cyber crimes in banks.
3. To identify the different strategies of addressing the cyber crime in banks.
4. To analyze the customer awareness regarding cyber crime in banking
sector.

1.3Scope of study

The study is to analyze about the persons affected due to cyber crime while
using their net banking and it will help full for the banks to rectify errors in
future period of time.

1.4Limitations:

The project may suffer from the following limitations:

 The required data was collected only with the customers of banks.
 Some of the important information is included because of time constraint.
 There may be bias in collecting secondary data from various sources.

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CHAPTER 2: INTRODUCTION TO INDUSTRY

2.1 Introduction to cyber crime in banking sector

Cyber Crime

The usage of internet services in India is growing rapidly. It has given rise to
new opportunities in every field we can think of – be it entertainment, business,
sports or education.

There are many pros and cons of some new types of technology which are been
invented or discovered. Similarly the new & profound technology i.e. using
of INTERNET Service, has also got some pros & cons. These cons are named
CYBER CRIME, the major disadvantages, illegal activity committed on the
internet by certain individuals because of certain loop-holes. The internet, along
with its advantages, has also exposed us to security risks that come with
connecting to a large network. Computers today are being misused for illegal
activities like e-mail espionage, credit card fraud, spams, and software piracy
and so on, which invade our privacy and offend our senses. Criminal activities
in the cyberspace are on the rise. Computer crimes are criminal activities, which
involve the use of information technology to gain an illegal or an unauthorized
access to a computer system with intent of damaging, deleting or altering
computer data. Computer crimes also include the activities such as electronic
frauds, misuse of devices, identity theft and data as well as system interference.

Computer crimes may not necessarily involve damage to physical property. The
y rather include themanipulation of confidential data and critical information.
Computer crimes involve activities of software theft, wherein the privacy of the
users is hampered. These criminal activities involve the breach human and
information privacy, as also the theft and illegal alteration of system critical
information.

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Computer crime can broadly be defined as criminal activity involving an
information technology infrastructure, including illegal access (unauthorized
access), illegal interception (by technical means of non-public transmissions of
computer data to, from or within a computer system), data interference
(unauthorized damaging, deletion, deterioration, alteration or suppression of co
mputer data), systems interference (interfering with the functioning of acompute
r system by inputting, transmitting, damaging, deleting, deteriorating, altering or
suppressing computer data), misuse of devices, forgery (ID theft), and
electronic fraud. Technology risks not only have a direct impact on a bank as
operational risks but can also exacerbate other risks like credit risks and market
risks. Banking sector has witnessed expansion of its services and strives to
provide better customer facility through technology but cyber-crime remains an
issue. Information which is available online is highly susceptible to be attacked
by cyber criminals. Cyber-crimes result in huge monetary losses which are
incurred not only by the customer but by the banks also which affects economy
of a nation. &on-monetary cyber-crime occurs when viruses are created and
distributed on other computers or confidential business information is posted on
Internet. As India become the fourth highest number of internet user in the
world, cyber crimes in India has also increased 50% in 2017 over the previous
years. According to the information technology (IT) Act, the majority of
offenders were under 30 years of age.

In order to tackle with cyber crime, Delhi police have trained 100 of its officers
in handling cyber crime and placed them in its economic offences wing.

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2.2 CHANGING FACE OF CRIME

The last year has seen a quantum jump not only in the quantity and quality but
also the very nature of cyber crime activities. According to Naavi, a perceptible
trend being observed is that cyber crimes are moving from 'Personal
Victimization' to 'Economic Offences'. SD Mishra, ACP, IPR and Cyber Cell,
Economic Offences Wing, Delhi Police concurs that the cases that are now
coming up are more related to financial frauds. As opposed to obscenity,
pornography, malicious emails that were more prevalent in the past, now credit
card frauds, phishing attacks, online share trading, etc. are becoming more
widespread. As Seth points out, initially, when the Internet boom began, certain
crimes were noticeable and cyber stalking was one of the first ones."However,
with the little offences came the larger ones involving huge money and one has
seen this sudden jump from smaller crimes to financial crimes in the last
one year," she adds.

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2.3 TYPES OF CYBER CRIME

1. Theft of Telecommunications Services

Offenders may gain access to the switchboard by impersonating a technician, by

fraudulently obtaining an employee's access code, or by using software
available on the internet. Some sophisticated offenders loop between PBX
systems to evade detection. Additional forms of service theft include capturing
"calling card" details and on-selling calls charged to the calling card account,
and counterfeiting or illicit reprogramming of stored value telephone cards.
It has been suggested that as long ago as 1990, security failures at one major tel
ecommunications carrier cost approximately £290 million, and that more
recently, up to 5% of total industry turnover has been lost to fraud Costs to
individual subscriber scan also be significant in one case; computer hackers in
the United States illegally obtained access to Scotland Yard's telephone network
and made £620,000 worth of international calls for which Scotland Yard was
responsible

2. Communications in Furtherance of Criminal Conspiracies

In the private and public sectors rely upon information

systems for communications and record keeping, so too are the activities of cri
minal organizations enhanced by technology. There is evidence of
telecommunications equipment being used to facilitate organized drug
trafficking, gambling, prostitution, money laundering, child pornography and
trade in weapons (in those jurisdictions where such activities are illegal).
The use of encryption technology may place criminal communications beyond
the reach of law enforcement. The use of computer networks to produce and
distribute child pornography has become the subject of increasing attention.
Today, these materials can be imported across national borders at the speed of
light.

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3. Telecommunications Piracy

Digital technology permits perfect reproduction and easy dissemination of print,

graphics, sound, and multimedia combinations. The temptation to reproduce cop
yrighted material for personal use, for sale at a lower price, or indeed, for free
distribution, has proven irresistible to many. When creators of a work, in
whatever medium, are unable to profit from their creations, there can be a
chilling effect on creative effort generally, in addition to financial loss.

4. Dissemination of Offensive Materials

Content considered by some to be objectionable exists in abundance in

cyberspace. This includes, among much else, sexually explicit materials, racist
propaganda, and instructions for the fabrication of incendiary and explosive
devices. Telecommunications system can also be used for harassing, threatening
or intrusive communications, from the traditional obscene telephone call to its
contemporary manifestation in "cyber-stalking", in which persistent messages
are sent to an unwilling recipient. One man allegedly stole nude photographs of
his former girlfriend and her new boyfriend and posted them on the Internet,
along with her name, address and telephone number. The unfortunate couple,
residents of Kenosha, Wisconsin, received phone calls and e-mails from
strangers as far away as Denmark who said they had seen the photos on the Inte
rnet. In another case a rejected suitor posted invitations on the Internet under the
name of a 28-year-old woman, they would be object of his affections that said
that she had fantasies of rape and gang rape. He then communicated via email
with men who replied to the solicitations and gave out personal information
about the woman, including her address, phone number, details of her physical
appearance and how to bypass her home security system. Strange men turned up
at her home on six different occasions and she received many obscene phone

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calls. While the woman was not physically assaulted, she would not answer the
phone, was afraid to leave her home, and lost her job

5. Electronic Money Laundering and Tax Evasion

For some time now, electronic funds transfers have assisted in concealing and in
moving the proceeds of crime. Emerging technologies will greatly assist in
concealing the origin of ill-gotten gains. Legitimately derived income may also
be more easily concealed from taxation authorities. Large financial institutions
will no longer be the only ones with the ability to achieve
electronic funds transfers transiting numerous jurisdictions at the speed of light.
The development of informal banking institutions and parallel banking systems
may permit central bank supervision to be bypassed, but can also facilitate the
evasion of cash transaction reporting requirements in those nations which have
them. Traditional underground banks, which have flourished in Asian countries
for centuries, will enjoy even greater capacity through the use
of telecommunications. With the emergence and proliferation of various
technologies of electronic commerce, one can easily envisage how traditional
countermeasures against money laundering and tax evasion may soon be of
limited value.

6. Illegal Interception of Telecommunications

Developments in telecommunications provide new opportunities for electronic

eavesdropping. From activities as time-honored as surveillance of an unfaithful
spouse, to the newest forms of political and industrial
espionage, telecommunications interception has increasing applications. Here
again, technological developments create new vulnerabilities. The
electromagnetic signals emitted by a computer may themselves be
intercepted. Cables may act as broadcast antennas. Existing law does not
prevent the remote monitoring of computer radiation.

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2.4 5 strategies for addressing cybercrime

Cybercrime can be far reaching with long-term effects from the impact on
organizations from the theft of intellectual property or business secrets to the
consequences identity theft can have on an individual, including credit standing
and loss of personal resources. Responding to cybercrime is even more
challenging because the economics favor the criminals. With just a laptop, a
single individual can wreak havoc on individuals and organizations with
minimal cost and little risk of being caught. More advanced technologies and
protective measures will eventually deter nefarious conduct, help security
officers catch and prosecute perpetrators and level what has become an
unbalanced playing field. In the meantime, it is imperative that all digital users
practice basic cyber security hygiene to increase their own protection and
improve cyber security overall.

A framework addressing cybercrime should include these five strategies:

1. Raising awareness

A comprehensive and sustained national cyber security education campaign is

essential for raising public awareness of the risk and impact of cyber activity
and the need to deploy basic protective measures on desktops, laptops, tablets,

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phones and other mobile devices. The explosion of connected devices -- from
smart refrigerators, lighting systems, heating and air conditioning, security
services to autonomous automobiles -- puts an exclamation point behind the
importance of cyber protection for individual users and organizations of all
sizes and levels of sophistication.

Cyber security education should cover the basics:

 Use strong passwords.

 Apply system updates in a timely and efficient manner.
 Secure devices by enabling a firewall and deploy solutions to address
viruses, malware and spyware.
 Learn not to click on email links or attachments, unless the sender is
known and trusted. Even then, phishing emails sometimes spoof the
sender’s identity to trick the user into clicking a link or attachment.

2. Leveraging trusted resources

Additionally, building, maintaining, scaling and updating an online source of

information on how users of all levels of sophistication can establish and
improve their protection profiles in cyberspace is imperative. Leveraging
capabilities, such as those created in the United States by the National Cyber
Security Alliance through Stay Safe Online or in the United Kingdom with Get
Safe Online; to implement a comprehensive and sustained national education
and awareness campaign is a fundamental component of any successful cyber
security program. Current cyber security efforts, such as the Stop… Think…
Connect campaign sponsored by the Department of Homeland Security, are a
good start. However, existing programs need to scale more broadly to accelerate
positive change.

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3. Building an economic framework

Simply purchasing every new tool or security product is not the answer. From
the individual user to the small business to the large enterprise, it is important to
make investment decisions for cyber security in a risk management construct
that includes trying to secure the biggest bang for the buck. AFCEA
International’s Cyber security Committee took a look at this issue and provides
useful information to assist in the examination around the economics of cyber
security. More information can be found here and here.

4. Working with invested partners

Improving our national and global capabilities to detect, prevent, mitigate and
respond to cyber events through a joint, integrated, 24x7 public/private
operational capabilities that leverages information sharing, analysis and
collaboration should be a priority. To build a mature operational capability for
cyber security, we should learn from how the National Weather Service and the
Centers for Disease Control and Prevention leverage technology and data
analytics to identify patterns and trends to issue early alerts and warnings as
well as recommendations for potential protective measures.

Working through the global community to address gaps and coordinate law
enforcement, investigation and prosecution of cyber criminals will help tackle
both the economics and the challenges of anonymity in nefarious cyber activity.
Global agreement on cyber deterrence and norms of cyber conduct will benefit
national and economic security, public health and safety and everyday life in
cyberspace.

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5. Implementing a response plan

Implementing a National Cyber Incident Response Plan is essential to national

and economic security. It should recognize the unique nature and risk presented
by cyber events and provides a predictable and sustained clarity around roles
and responsibilities of various stakeholders during thresholds of escalation. A
strategic, yet agile, framework should be accompanied by operational playbooks
that focus on critical infrastructure. These steps are necessary to achieve ground
truth and situational awareness during a cyber event.

There are initiatives across these topic areas, but many remain ad hoc. Ongoing
improvement in cyber security requires a coherent, coordinated and
collaborative approach across the stakeholder community. It is not just about the
federal government, it is also about state, local, tribal and territorial agencies. It
is not just about the public sector, it must include industry in a true partnership
founded on mutual respect and engagement that honors, recognizes and
leverages roles, responsibilities and capabilities in a joint, integrated and
collaborative manner. It is not just about domestic risk, it is about global risk to
an interconnected and interdependent community and the threat to national and
economic security.

Each of us has a role to play in improving our individual and collective cyber
security. With the proliferation of mobiles devices and the explosion of the
Internet of Things presenting new and emerging cyber challenges, we must
implement basic protective measures that will help to reduce the risk while
increasing the cost and difficulty for cyber criminals.

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2.5 WHAT ARE THE DIFFERENT WAYS THAT CYBER CRIME CAN
PREVENT?

The following ten tips are basic ways that Cyber Crime can be prevented.

1. Keep the Computer System Up-To-Date

Cyber criminals will use software flaws to attack computer systems
frequently and anonymously. Most Windows based systems can be
configured to download software patches and updates automatically. By
doing this they will monitor all online activity with the intent to protect
the system from viruses and other malicious programs. They will also be
up graded to protect against Spyware and Adware. To be safe on the
Internet, the antivirus software should be configured to update itself every
time the system connects to the Internet.
2. Protect Your Personal Information
Using many of the online services today involves sharing basic personal
information to include name, home address, phone number, and email
address. Using common sense is the best way to protect against and
prevent Cyber Crime. Do not respond to email messages that contain
misspellings, poor grammar, odd phrases, or web sites with strange
extensions. When in doubt about responding to an email, consider a
telephone call to the organization to verify authenticity. Type the address
for the website in the browser instead of clicking on a link. Any financial
transaction website should have an “s” after the letters “http” (e.g.,
https://www.mystore.com AND NOT http://www.mystore.com). The “s”
stands for secure and should appear when you are in an area requesting
you to login or provide other sensitive data. Another sign that you have a
secure connection is the small lock icon in the bottom of your web
browser (usually the right-hand corner). Hackers might try to gain access
to crash it, delete information, or steal passwords and other sensitive

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 information. Software firewalls are widely recommended for single
computers. The software is prepackaged on some operating systems or
can be purchased for individual computers. For multiple networked
computers, hardware routers typically provide firewall protection.
3. Install or Update Your Antivirus Software
Antivirus software is designed to prevent malicious software programs
from embedding on your computer. If it detects malicious code, like a
virus or a worm, it works to disarm or remove it. Viruses can infect
computers without the users’ knowledge. Most types of antivirus software
can be set up to update automatically. Nearly 100 percent of the
computers sold in the United States today come with some form of
antivirus software. Failure to keep this software current is where a
majority of the issues arise. The firewall monitors all data flowing in and
out of the computer to the Internet, often blocking attacks from reaching
the system. Antivirus software is the next line of defense so that cyber
criminals who exploit flaws in software packages may be thwarted. This
will also deter a number of automated and simple attacks criminals use to
break into your system.
4. Secure Configuration of the System
It is important that computers are configured to the security level that is
appropriate and comfortable for the user. Too much security can have the
adverse effect of frustrating the user and possibly preventing them from
accessing certain web content. Using the “help” feature of the operating
system can often address many of the questions in this area.
5. Choose a Strong Password and Protect It
Usernames, passwords, and personal identification numbers (PIN) are
used for almost every online transaction today. A strong password should
be at least eight characters in length with a mixture of letters and
numbers. Using the same password for various sites or systems increases

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 the risk of discovery and possible exploitation. It is never a good practice
to write a password down and leave it near the system it is intended to be
used on. Changing a password every 90 days is a good practice to limit
the amount of time it can be used to access sensitive information.
6. Keep Your Firewall Turned On
A firewall helps to protect your computer from hackers who might try to
gain access to crash it, delete information, or steal passwords and other
sensitive information. Software firewalls are widely recommended for
single computers. The software is prepackaged on some operating
systems or can be purchased for individual computers. For multiple
networked computers, hardware routers typically provide firewall
protection.
7. Read the Fine Print On Website Privacy Policies
On many social networking and photo sharing sites, there is wording on
the privacy policies that allow the website to keep information and photos
posted to the site, sometimes indefinitely, even after the original has been
deleted by the user. While this may not discourage one from posting
images or messages, awareness that this can be later retrieved and
disseminated may be a consideration as to what information or photos are
posted. What today may seem to be a harmless prank can have a
devastating effect on one’s reputation several years later when applying
for a job or other opportunity.
8. Review Financial Statements Regularly
Reviewing credit card and bank statements regularly will often reduce the
impact of identity theft and credit fraud by discovering the problem
shortly after the data has been stolen or when the first use of the
information is attempted. Credit card protection services can often alert a
person when there is unusual activity occurring on his or her account, for
example, purchases in a geographically distant location or a high volume

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 of purchases. These alerts should not be taken lightly and could be the
first indicator a targeted victim receives that something is wrong.
9. If It Seems Too Good to Be True, It Is!
No one is going to receive a large sum of money from a dead Nigerian
politician, win a huge lottery from being “randomly selected from a
database of email addresses,” or make big money from “passive residual
income a few hours each day working out of your home.” Many of these
crimes go unreported because the victim is too embarrassed to admit to
law enforcement.
10.Turn Off Your Computer

With the growth of high-speed Internet connections, many opt to leave their
computers on and ready for action. The downside is that being “always on”
renders computers more susceptible. Beyond firewall protection, which is
designed to fend off unwanted attacks, turning the computer off effectively
severs an attacker’s connection—be it spyware or a bot net that employs
your computer’s resources to reach out to other unwitting users.

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2.6 IMPACT OF CYBER CRIME

 Impact of Cyber Crime over Socio-Eco-Political Riders

Conceptually, crime is a dynamic and relative phenomenon and subjected to

the relative sociopolitical & economical changes occurring in existing system of
society. Therefore, neither all-time suitable comprehensive definition
encompassing all aspects of ‘crime’ is possible at any moment of time nor can a
single definition be made applicable to different society. With its dynamicity, it
is influenced by the changes occurring in the correlated phenomenon and value
system generated by these changes. As evident in present scenario where money
is more valuable than values, a definite hike in the corruption related offences
are observed where social morality is low which influence the commission of
crime attached less social stigma than ever before. Incidentally economic crime
is on its peak. This clearly reflects that crime has its interdependency with other
social phenomenon, economic systems and political machineries. Also, the
population is one of the important factors influencing incidences of crimes. A
positive correlation between the growth in incidences of crime and the
population of the country has been observed. Besides population, the other
factors influencing the crime are such as situation at a particular place, rate of
urbanization, migration of population from neighboring places, unemployment,
income inequality, [computer literacy in case of Cyber crime] etc.2 At the same
time, the economic structure of give society is also influence the economic
crimes. As every controlling systems for crime has much to do with the political
system which prescribe norms, make rules, create preventive measure, the
political structure and system also influence the crime in given society. This
clearly demonstrates that every definition of crime has correlation with the
socio-economical and political factors.

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  Impact of Cyber Crime over Teenager

These days a worst fear in teenager’s eyes is Cyber Bullying. It is become

common over past five years, generally from the age below eighteen are more
susceptible and feared from Cyber Bullying as per inspection. It is becoming an
alarming trend in our society. As per inspection of data, the worst fear of cyber
crime is on teenagers female. Cyber Bullying is a fear when person receives
threats, negative comments or negative pictures or comments from other person.
This is all done through core technologies described above mainly via online.
Cyber Bulling can be done through chatting, instant messaging etc. Where
website like Facebook, Orkut, Twitter user are more affected from Cyber
Bullying. In my analysis generally feared person can reach a limit of depression,
humiliation and threatens. Through this analysis we come to analyze that if
person Bulled online he or she may be depressed up to the level of self harming.

 Impact of Cyber Crime over Private Industry

Having to use three attributes to describe cybercrime I would use the words
intrusive, silent and dangerous. Just the silent mode of this type of crimes is a
major problem in combating the threat, in fact, very often the companies realize
that they have been victims of frauds or attacks until long after the event
occurred. The consequences are disarming and retrieve the situation is
sometimes impossible, precisely the time gap between the criminal event and its
discovery provides an advantage to those who commit crimes often
unbridgeable that makes impossible any action of persecution. But we are
assuming that the event is discovered by the victims and this is not always true,
many companies are in fact over the years are victims of cybercrime, but they
are not aware.

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  Impact of Cyber Crime over Consumer Behavior

The information revolution, coupled with the strategic leveraging of the

Internet, has exposed a number of relatively open societies to the dangers of
cybercriminal and cyber terrorist acts, especially in commercial business
transactions. With the development of e-commerce, this commercial dark side
has become known as cybercrime and has taken on many forms that affect the
perceptions of the way we shop online. Corporations should realize that these
threats to their online businesses have strategic implications to their business
future and take proper measures to ensure that these threats are eliminated or
significantly reduced so that consumer confidence in the Internet as an
alternative means of shopping is maintained. These counter measures, coined as
cyber security, have been developed to ensure the safety of consumer privacy
and information and allow for a carefree shopping experience. There is need for
the development of models that will allow corporations to study the effects of
cybercrime on online consumer confidence and to counter through leveraging
the benefits associated with the latest developments in cyber security. With
these two facets of e-commerce impacting the online consumer, corporations
must ensure that the security measures taken will ultimately prevail to assure
that consumers will continue to use the Internet to satisfy their shopping needs.

 Impact of Cyber Crime over Business

According to the FBI and the Department of Justice, cyber-crime is on the rise
among American businesses, and it is costing them dearly. Cyber-crime
includes a myriad of devious criminal practices designed to breach a company's
computer security. The purpose of the electronic break and enter can be to steal
the financial information of the business or its customers, to deny service to the
company website or to install a virus that monitors a company's online activity
in the future. The-Cost-Of-Protection Companies that want to protect

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themselves from online thieves have to pull out their wallets to do it. There are
costs in identifying risks, building new and safer operating procedures, and
buying protective software and hardware. For businesses with complex or
sensitive operations, this often involves hiring a cyber-security consultant to
develop a customized solution. Not only are the upfront costs of protection
expensive, but the systems must be tested and monitored regularly to ensure that
they are still effective against emerging cyber-attacks. These costs are often
passed on to the customer through higher prices of goods and services. Lost-
Sales Cyber-crime isn't just for thieves anymore. A new subculture has emerged
in the past few years: the cyber-activist. These are the online equivalents of
protesters who chain themselves to buildings or trees. Their purpose is to shut
down a company's online operations to send a message about the company's
business practices. In the past two years, major corporations, such as PayPal and
MasterCard, have been attacked in this way.

 Impact of Cyber Crime over Youth

Cyber communication is society's newest way to interact. Online social

networking websites, text messages and emails provide users with an effective,
quick way to communicate with people all over the world. Teens in particular
spend hours online every day, on computers or personal electronic devices.
Friendships Family-rescource.com states that 48 percent of teens believe the
Internet improves their friendships. With social networking sites becoming
increasingly popular, youth are able to stay connected to real and online friends.
Some teens believe cyber connections help them feel confident to be their true
selves. Instant messaging programs, used by an estimated 13 million teens,
allow conversations with friends to occur in real time. Online communication
tools open the door for friendships with other teens near and far. Writing While
teens are frequently online, using cyber forms of communication doesn't require
formal writing skills. Quite the opposite actually occurs; youths often use

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shorthand, abbreviations or slang when writing online. The National
Commission on Writing states that 85 percent of teens use social networking
communication, but 60 percent of them don't see this form of communication as
"writing." Teens should be aware of the difference between formal and informal
writing, and understand when the latter is not appropriate (in school). Cyber
Bullying Cyber bullying is a negative effect of online communication between
youth. Victims of cyber bullying often experience rumors and lies spread on
online social networks. Bullies may post inappropriate or embarrassing pictures
of their victims. Another aspect of cyber bullying involves using mean text
messages as harassment. The National Crime Prevention Council states that
cyber bullying is a problem for almost half of American teens. In some extreme
cases, teens have taken their own lives as a result of cyber bullying.

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2.7Future Trends

Recently, there has been significant discussion over the amalgamation of

organized criminals and cybercrime. Such a pairing indeed forebodes an ill
omen for the near term future. With most of the criminal groups operating
out of Eastern Europe, Russia and Asia, where laws and enforcement are
scanty, there seems little hope in containing and neutralizing the threat
through traditional means. Phil Williams, a visiting scientist at CERT,
summarized the issue succinctly. “The Internet provides both channels and
targets for crime and enables them to be exploited for considerable gain with
a very low level of risk. For organized crime it is difficult to ask for more.”
The result that can then be expected will be an increase in sophisticated
phishing attacks and other means for identity theft that may be two pronged.
For example, using call centers to notify “customers” ahead of time of some
issue, and then following up with emails that request personal information.
The aggregation of personal information in many third party data centers
will prove to be valuable targets to infiltrate. It is not hard to imagine
criminals using data mining techniques to find the most gullible consumers,
or tailoring phishing emails for specific people based on their medical,
financial or personal history. Identify theft will also move in more automated
directions. For example, botnets will become vehicles not just for denial of
service attacks and spam, but also as giant search platforms for finding
personal information, like credit cards and social security numbers.
Controllers of the botnets will then receive payment to run queries on their
“database.” With professional criminals managing the money laundering and
organization of such schemes, it begs to ask where all the technical know-
how will come from in order to perform cybercrime. Unfortunately, there are
growing numbers of intelligent black-hats with university degrees spread
around the globe, many of them operating in countries where legal

22
employment does not pay as well and the chances of being caught are slim.
But more troublesome is that it has become easier than ever before to be a
hacker capable of inflicting great harm on networks and committing
cybercrime. The Internet has created a repository of knowledge where
anyone is able to learn the fundamentals of subverting computer systems,
with numerous tutorials available that spell out in nearly layman's terms how
to perform a buffer overflow or a man in the middle attack. Interestingly, the
greatest problem is not those who will take the time to learn and find new
exploits. In fact this group will probably remain a small, highly intelligent
network of researchers and security groups focused solely on finding holes
in software. In this, it is preordained, that even if someone is motivated to
learn how exploits work, finding a new exploit takes a degree of
investigation, skill and diligence that most are not willing to invest. Thus, the
barrier to entry to the field is so low that it allows almost anyone to
experiment and join the swelling ranks of cybercriminals. With the learning
curve so low, it should prompt discussion on the need for a new paradigm of
thought in how to preempt and deal with criminals, in a way that is no longer
tied to traditional methods. For example, for someone to break into a house,
not only do they need to plan the opportune moment, but they may also have
to be aware of lock picking, security system evasion and possess a degree of
gumption to overcome moral thresholds. In opposition, the ease of
cybercrime seems inversely proportional to the lucrativeness that it bestows
and moreover, these trends show signs of accelerating.

23
CHAPTER 3 : RESEARCH METHODOLOGY

This study is based on Cyber crime in banking sector.. The study is also been
carried out to know the level of awareness of cyber crime in banking sector
among the people. The data has been compiled in the following ways. They are:

(a) Primary data: Primary data is the data that is generated by the researcher
for the specific purpose of research situation at hand. For this project the
primary data will be collected from the personnel. This data can also be
obtained through a questionnaire, based upon which some statistical techniques
are applied.

(b) Secondary data: The secondary data can be gathered from various sources
like statistics, libraries, research agencies etc. In this case the secondary
information is to be collected from newspapers, Internet and previous project
reports.
(b) Research design

The study is intended to find the level of awareness of cyber crime in banking
sector among the people. The study design is descriptive in nature. A Research
design is purely and simply the framework of plan for a study that guides the
collection and analysis of data.

(c) Data Collection tools: Questionnaires

(a) Sampling unit

Sampling may be defined as the selection of some part of an aggregate or
totality on the basis of which a judgment or inference is made about the
aggregate or totality. It is the process of obtaining information about an entire
population by examining a part of it.

(b) Sample Size:

 The size of the sample for the study is 60.

24
CHAPTER 5: ANALYSIS AND INTERPRETATION

1. Place of living

Rural Urban
36% 64%

Place of living

36% Rural
64% Urban

From the above analysis it has been observed that number of respondent have
been from urban area i.e 64%. Least number of respondents found in the rural
area i.e 36%.

2. Are you aware about cyber crime in banking sector?

YES NO
75% 25%

Aware about cyber crime

25%
Yes
No
75%

25
Above analysis shows that large number of respondent are not aware about the
cyber crime in banking sector i.e 75% whereas 25% are not aware about the
cyber crime.

3. What do you think how does the banking fraud happens?

FRAUD BY INSIDERS FRAUD BY OUTSIDERS

30% 70%

banking fraud

30%
Fraud by insiders
Fraud by outsiders
70%

It has been observed that large number of respondent said that mostly banking
fraud done by outsider’s i.e 70% where least number of respondents is said that
banking fraud done by insider i.e 30%

4. What are the reasons of happening of cyber crime in banking sector?

ATM Fraud 37%

Cheque Fraud 33%
Credit Card Fraud 13%
Money Laundering 11%
Other 6%

26
 Reasons

6% ATM Fraud
11%
37% Cheque fraud
13% Credit card fraud
Money laundering
33% Other

The above analysis shows that most number of respondent said that ATM fraud
is the main reason of happening of cyber crime in banking sector i.e 37%.
Which has been closely followed by cheque fraud i.e 33%? 13% of the
respondent said that credit card fraud is the reason of happening of cyber crime
in banking sector. Followed by respondents considering 11% and 6% as the
reason of happening of cyber crime.

5. How does the cyber crime affect the banking sector?

Hacking 29%
Viruses 26%
Identity Theft 15%
Spyware 30%

cyber crime affects in banking

Hacking
30% 29%
Viruses
Identity theft
15%
26% Spyware

27
From the above analysis survey mostly observed that 30% cyber crime affects
in banking sector by spyware which has been closely followed by hacking and
viruses considering the 29% and 26% respectively. Least number of respondent
said that cyber crime affects by identity theft i.e 15%.

6. What are the precautions to be taken while doing transaction on net

banking?

Never Share Pin 55%

Do not click on hyperlinks while 35%
confirming your bank details
Others 10%

Precautins to be taken
Never share your pin
10%

Do not click on hyperlinks

while confirming your
35% 55% bank details
Others

The above chart shows that large number of respondents said that precautions to
be taken on while doing transaction on net banking by never share your pin
55%. 35% of respondent said that do not click on hyperlink while confirming on
your bank details and 10% said with the other precautions.

28
 7. What will you recommend to prevent cyber crime among the society?

Cyber Fraud Council 28%

Education to customer 25%
Training to bank 29%
Strong encryption or decryption 18%
methods

Recommend to prevent
Cyber fraud council

18%
28% Education to customer

Training to bank employs

29%
25%
Strong encryption or
decryption methods

From the above analysis it has been observed that most number of respondent
strongly recommend to prevent by training to bank employees i.e 29% which
has been closely followed by cyber fraud council i.e 28%. 25% of the
respondent recommends preventing as education to customer.

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 8. If government take initiative on cyber crime would you like to support?

Yes 95%
No 5%

Goverenment initiative
5%

Yes
No
95%

From the above analysis survey mostly observed that large number of
respondent would like to support if government take initiative on cyber crime
95% and the least number of respondent are against to support if the
government take initiative on cyber crime as they are not aware about it.

30
CHAPTER 5.CONCLUSION AND RECOMMENDATION

5.1Conclusion

Lastly I conclude by saying that “Thieves are not born, but made out of
opportunities.”This quote exactly reflects the present environment related to
technology, where it is changing very fast. By the
time regulators come up with preventive measures to protect customers from
innovative frauds, either the environment itself changes or new technology
emerges. This helps criminals to find new areas to commit the fraud. Computer
forensics has developed as an indispensable tool for law enforcement. But in the
digital world, as in the physical world the goals of law enforcement are
balanced with the goals of maintaining personal liberty and privacy. Jurisdiction
over cyber crimes should be standardized around the globe to make swift action
possible against terrorist whose activities are endearing security worldwide. The
National institute of justice, technical working group digital evidence is some of
the key organization involved in research.

The ATM fraud is not the sole problem of banks alone. It is a big threat and it
requires a coordinated and cooperative action on the part of the bank, customers
and the law enforcement machinery. The ATM frauds not only cause financial
loss to banks but they also undermine customers' confidence in the use of
ATMs. This would deter a greater use of ATM for monetary transactions. It is
therefore in the interest of banks to prevent ATM frauds. There is thus a
needto take precautionary and insurance measures that give greater "protection"
to the ATMs, particularly those located in less secure areas. The nature and
extent of precautionary measures to be adopted will, however, depend upon
the requirements of the respective banks. Internet Banking Fraud is a fraud or
theft committed using online technology to illegally remove money from a bank
account and/or transfer money to an account in a different bank. Internet

31
Banking Fraud is a form of identity theft and is usually made possible through
techniques such as phishing.

Credit card fraud can be committed using a credit card or any similar paymentm
echanism as a fraudulent source of funds in a transaction. The purpose may be
to obtain goods without paying, or to obtain unauthorized funds from an
account. Cyber space and cyber Payment methods are being abused by money
launderers for converting their dirty money into legal money. For carrying out
their activities launderers need banking system. Internet, online banking
facilitates speedy financial transactions in relative anonymity and this is being
exploited by the cyber money launderers. Traditional systems like credit cards
had some security features built into them to prevent such crime but issue of e-
money by unregulated institutions may have one. Preventing cyber money
laundering is an uphill task which needs to be tackled at different levels. This
has to be fought on three planes, first by banks/ financial institutions, second by
nation states and finally through international efforts. The regulatory framework
must also take into account all the related issues like development of e-money,
right to privacy of individual. International law and international co-operation
will go a long way in this regard.

Capacity of human mind is unfathomable. It is not possible to eliminate cyber

crime from the cyber space. It is quite possible to check them. History is the
witness that no legislation has succeeded in totally eliminating crime from the
globe. The only possible step is to make people aware of their rights and duties
(to report crime as a collective duty towards the society) and further making the
application of the laws more stringent to check crime. Undoubtedly the Act is a
historical step in the cyber world. Further I all together do not deny that there is
a need to bring changes in the Information Technology Act to make it more
effective to combat cyber crime.

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5.2Suggestions:
 Choose your password securely and don’t share it with other while doing
transaction in the banks.
 Don’t trust on fraud hyperlinks which are not sent by the officially from
the banks.
 Give proper training to the employees regarding cyber crime.
 Most number of peoples is not aware about the cyber crime so that is
needed to require awareness among the society.

33
Annexure

QUESTIONNAIRE

Name

Age

Gender

1. Place of living
Rural
Urban
2. Are you aware about cyber crime in banking sector?
Yes
No
3. What do you think how does the banking fraud happens?
Fraud by Insiders
Fraud by Outsiders
4. What is the reason of happening of cyber crime in banking sector ?
ATM Fraud
Cheque Fraud
Credit Card Fraud
Money Laundering
Other
5. How does the cyber crime affect the banking sector?
Hacking
Viruses
Identity Theft
Spyware
6. What are the precautions to be taken while doing transaction on net
banking?

34
 Never share Your Pin
Do Not Click on hyperlinks while confirming your bank details
Others
7. What will you recommend to prevent cyber crime among the society?
Cyber Fraud Council
Education to Customer
Training to bank employees
Strong encryption or decryption methods
8. If government take initiative on cyber crime would you like to support?
Yes
No

35
BIBILOGRAPHY

www.wikipedia.com

www.financialexpress.com

www.economictimes.com

www.investopedia.com

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